All Forum Posts by: Art Martinez

Hi Rhyna,

I’ve had great luck with Arizona. I built a house out there in 2015 and overtime the Defense industry, then tech industry moved into our city.
 
Things are a bit pricey right now, however, there will always be an influx of snowbirds and transplants. 

Best of luck

Art

Just a quick update. We've worked with some Realtors, and spoken to some builders. The timelines are not short for new construction. Apparently, the builders are so busy, one year is very lucky, but two years is more likely and there is no incentive for builders at the moment. Their schedules are full. 

Hello everyone, we have decided to dip our toes in short term rentals in CA. I currently own two properties, one of them is cash flowing nicely in Arizona. 

We live in Nevada and want to build a short term rental in Big Bear CA, with the potential of having a Next Gen option so we can also visit on holiday weekends, while staying in the Next Gen Suite.

All three of my house I’ve owned were new builds, as they were my primary residence. But I’ve never used a construction loan before. I have a great realtor in Orange County, but he has sold a few properties in Big Bear before. I’m looking for some feedback or advice into this process.

Thanks in advance for the feedback.

Art

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $263,000
Cash invested: $10,000

3 Bedroom, 2.5 bath villa style home. Originally purchased as my primary residence, using my VA loan. The backyard has a built-in gas firepit and seating area. Huge loft upstairs.

What made you interested in investing in this type of deal?

I was in the market for a single family home

How did you find this deal and how did you negotiate it?

My realtor identified this neighborhood. It was a new build and I thought it would be out of my price range. There wasn't much to negotiate, on my end at least. We did negotiate the construction supervisor on-site to install home theater speakers I purchased from BestBuy.

How did you finance this deal?

I used my VA loan. I wish there were more lessons learned from it, but VA loans can be very simple for the buyer.

How did you add value to the deal?

I put a few thousands dollars into the small backyard. By adding a seating area around a travertine fireplace, I gave the illusion of the dining room being extended to the outdoors area as well. Put in some Astroturf and river rock to make the small space more inviting and cozy

What was the outcome?

After I moved from Arizona, I rented it out. I had to take my first tenants to court for being four months late on rent, but since having a property manager, we've been able to find new tenants, that have been there for 4.5 years. It is cash flowing nicely, and its equity continues to grow.

Lessons learned? Challenges?

1. I won't rent to friends again. They took advantage of that "relationship" and we are no longer associates.
2. I will use a property manager for out-of-state properties
3. I am not afraid to fire my property manager for not being candid with me and their fees. That lead to tenants reaching out to me wondering why rent was $150 higher than quoted.
4. I've established boundaries with tenants. They can always call if the PM isn't available, but they must go thru the PM first and foremost.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I like my property management company. I do have a realtor I trust, although we have never closed a deal together, she has protected me from bad deals and we walked away.