CA Redwoods Property

[Brett Lambert]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $1,485,000

Beautiful estate-like property in the Redwood forest above Santa Cruz CA. This is a long term development opportunity. Multiple outbuildings and cottages spread out among the property. For now all 4 units are rented for a total of 12k/month.

[Dennis Bragg]

Hey @Brett Lambert, this sounds like a unique gem tucked into the majestic Redwoods. In my experience, a property with multiple cottages and outbuildings can provide all kinds of creative strategies...some folks try short-term rentals or even specialized retreats if local regulations allow. I remember a buddy who once represented a client in the Santa Cruz Mountains.. this client turned an old barn into a shared art studio and invited local artists to rent the space, which ended up boosting inccome in ways they never imagined.

The Redwood market can be tricky because of environmental restrictions, zoning quirks, and limited inventory. As someone based in San Diego, I’ve also noticed that investors eyeing California real estate tend to focus on potential future development or expansion (especially if you have the patience to navigate local regs). The fact that you already have multiple units fully rented is a big plus.

If I were analyzing this, I’d start by verifying each cottage’s rental history, condition, and potential for adding more units or amenities. I might also compare it to other markets..like Austin or Phoenix..where property prices have been shifting (from what i read in CNBC) but still show growth potential. It really helps to see how Redwood properties stack up in terms of returns versus popular metro areas (from what I’ve heard).

What would you do first if you were to break down the property’s biggest potential value-add?

[Sean O'Keefe]

Following - I'm based in California

[Balkrishna Agrawal]

How much is insurance of these properties?

California has seen huge uptick in home insurance, I'd imagine Santa Cruz has a high fire insurance