Buying and Holding in Lake Havasu City, AZ?

Question

I am very new (22yo) and am unfortunate enough to live and work in Los Angeles. My parents are retired in Lake Havasu AZ and I am thinking about buying my first rental property out there and making the drives.

I have read 3 real estate books in the last three days and listened to several podcasts and still will admit that I know next to nothing. Any advice or strategies are appreciated.

Is it possible to use an FHA loan to “live there” during the summer as a vacation home and rent it out to the snow birds during the winter months?

Alan Robert Litz · Answer

@Parker C. Snow

Hey Parker! I live in Live in Lake Havasu!

Short term rentals are the way to go out

PM me if you have any more questions!

Betty Snowie · Answer

Hi TJ. Everything is better at the Lake. I just got back from a nice walk around English Village. Beautiful!

As for my rentals, at this time I'm more in line with the snowbird rentals so away from the lake but with lots to do particularly in the backyard. All my homes have heated pools, two have putting greens and the third has a games room (complete with poker table, cards and necessary chips!).

I'm not ruling out a party home at some point but I have some very specific requirements for vacation rentals. The first is that it needs to be close to me. I do my own management and if I get called out for any reason, I don't want to be driving any distance, especially at night. If you've read my profile you'll see I'm over 70 and eyesight really does become an issue!!

I suggest you look at my profile. I have two houses that have photos and a description. The third one became occupied before I could get the photographers out so I don't even have it on the market yet, but it's rented Jan 1-Mar 31 and then July 1-Aug 31 (and maybe also September). These are all returning guests from my other houses!

It seems there are never quite enough rentals for snowbirds. Mine are higher end (not highest but higher than a mid-) and lots of snowbirds are looking for more nice low-mid range.

Just occurred to me that you can also check out the 2 homes on Vrbo.com. The numbers to search for are 1253934 (3 bed, 2 bath, my first rental), and 1632582 (4 bed, 3 bath, the one with the games room). The 3rd property won't be activated until I can get photos up, so perhaps by late April.

If you decide to invest in our little city, get in touch to say Hi! I always need someone to refer to when my places are full!

Betty Snowie · Answer

I have 3 vacation rentals In Lake Havasu and it’s never enough! Don’t know about loans though, but any other questions I’d be happy to help!

Gail W. · Answer

LOVE Havasu! We've had a couple of vacay rentals out on the Island that have done really well for us over the years. We recently sold one so we could get right ON the lake and MAN, that thing is a hot rental! Next, we are looking for a regular SFR out in town to rent full time to working families. That's something Havasu really needs more of. There isn't a ton of high paying jobs; it's a resort town. But we desperately need families to keep coming to run those tourist businesses and we need them to STAY and become vested in their home town. So good, clean, solid, decently priced rentals are a must.Problem is; every other refugeeing Californian has sold their high priced home back in So Cal and come out and purchased all the cheap homes, flipping them. So prices have shot up. Personally, I can't see how the higher and higher sell and rental prices can  continue when the ones needing to pay for them are not making So Cal bank. So it's hard to find an SFR under $200k anymore. This time last year- I passed up half a dozen SFRs in Havasu around $130k- $150k because we were tied up with our So Cal home and vacay rentals...DANG IT!! We are scouring the town looking for that next gem, but I refuse to overpay when they'll top out soon and then I won't make anything each month on rent. :/

Mike Hottinga · Answer

@Parker C. Snow my advise would be to keep educating yourself and be patient. Educating yourself will allow you to understand why you should invest in a particular market. I have been in Havasu 10 years and am fortunate to have one of the few well paying jobs in this town. I looked at sub $250k SFRs and 1-4 multifamilys for 3 years and couldn't find anything that worked number wise without $100k+ down payment (2015-2018). I changed plans and bought my 3/3/3 sfr and rented the 2 other rooms. I was close to break even monthly with 2 roommates, but now only have one. Home prices have climbed fast and rents have been flat.

Betty Snowie · Answer

I agree completely Gail. I just put an offer in on a SFR and it didn't even get passed their realtor. The sellers wouldn't look at any offers more than $5K below list. And it's way overpriced at list. This seller purchased the house, at an overvalued price, then listed the next day. Now they want their money back AND the realtor fees! Someone will probably pay it.

As for multifamily, yes I agree with that as well. I'd love to get into a small multifamily, but when you're talking more than a duplex, there are few options and and a "good-ole-boy" mentality. (And that includes women who have been investing for years in town.) Those options never seem to actually make it to market.

If anyone out there has suggestions for breaking through that barrier I know I'd love to hear them!

Diane Grant · Answer

I’m just getting started with real estate investing- been living in Lake Havasu for 3 years and need to subsidize my lifestyle!!! Looking to learn from someone local- possibly partner with them.  I have the time to invest in finding deals- just looking for some help along the way! Let me know if you are looking for an excited new investor to work with!

Diane

John D. · Answer

I am all short-term these days.

Trevor Aydelott · Answer

Hey @John D. are you doing it for short term rentals or long term?

Betty Snowie · Answer

That is HUGE John! Congrats! I will let my contacts know about it and if any hits come up I will touch base with you. Will it be on Vrbo or AirBnB? Perhaps you can post your property number once it's live so I can forward the info to others. Best of luck but with that large a property, I'm sure you won't need luck!

Buying and Holding in Lake Havasu City, AZ?

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