All Forum Posts by: Bradley Buxton

@Chaim Mal

Good advice from @Nicholas L.

I'd add that you don't want to only trust the agent's word, they need to show you data that will justify the purchase for your goals (why you want to invest in real estate).  This is more than comparative sales in the area. For our clients produce reports with rental data in the hyper-local area, condition, calculations for cash flow, cash on cash, and knowledge from other investor clients and local development. 
They will also have multiple trusted tradesmen in the area that you can verify.

Consider where you would want to live. Many people find that investing where they would want to live has long term benefits. 

Why not invest in your state or city, wherever you know the market? 

@Dave Foster

@Dave Foster is the expert in 1031 exchange mechanics. 

A lot of the big questions come down to your risk tolerance and running the numbers, not just on the best-case scenario, but also the "what-if-it-underperforms" scenario. Talk with your family or partners about what you're comfortable with:
What’s the backup plan if the short-term rental doesn’t cash flow?
Could you pivot to long-term renting or even sell without taking a loss?

Every market can work — if you buy the right deal at the right price. I’d also suggest connecting with a local investment-savvy agent who knows how to navigate the cycles. In boom-and-bust markets (like where I'm at in Tahoe, for example), there might be a window to pick up equity if prices dip and you’re ready.

Also, STR regulations are changing fast in many areas, and oversaturation is real — so build those risks into your model. And don't wait until the last minute to find a good property manager. Start talking with STR specialists early. They can make or break your returns.

@Elisabeth Lernhardt

Reno had a large number of 1 and 2 bedroom apartments come online in the last few years. The latest data is showing half the number of apartment starts and planning as in years past. The inventory is mostly absorbed. Keep in mind that the apartments are offering incentives and have the benefit of a new building to attract residents. With the new Tesla semi-truck factory and 2 new battery factories coming online in the next few years, the housing shortage in Reno will continue and rents will rise.  

@Angela Davis

Are there other factors that are important?  Cash flow is one factor in a successful rental. There are other such as appreciation, time, energy, and location. If you buy with all cash, you will usually cash flow but then you might have terrible residents that tear up your property and then you have lost all the gains. Most markets you can find deals that will cash flow even with lending.  We are finding that in the Reno Tahoe market, looking for creative deals with seller financing, assumable loans, and new construction is key to making the numbers work. There are lots of threads on here of those seeking the cash flow and finding only a pit. Find a market that works for you and you can work on a strategy that will cash flow.

 For sure!  Sent you a PM

@John Cezar Dimaano

I have a few recommendations. They are based in Reno but have a lot of experience with out-of-state investors. They are part of my trusted investors team here in the Reno Tahoe area. I'll send you a PM. 

@Todd Sadowski

The best markets for a BRRRR still have the same fundamentals as other strategies. Does the market data support the rent, population, and job growth? What is the current inventory in the market today and what are the new housing starts? Is it in an area that you can manage the project during and after with your current time, energy, and lifestyle?

@Theresa Pisani

Find a local lender in the market you want to invest in because they will have local knowledge of the area and can offer other advice for areas to buy (or not buy) and have likely worked with local appraisers and agents that can get a deal closed. Check lender fees not just the rate. Areas like Lake Tahoe also have some nuances to getting a loan due to insurance costs and land use.  When shopping around, take out the 3rd party fees (Taxes, escrow fees etc) and buy downs to help compare lender costs. 

@Alex Smith

Depending on your local regulations in CA consider a mid-term lease with a new rental rate. Explain the situation as you did in the post. The resident gets to stay longer with a rent premium to cover the lost revenue from the STR. Depending on your area calculate the revenue difference, time, and energy management of changing from a STR to a LTR. The slower STR time might be better for a changeover if you need to do repairs.

@Paul Fogarty

I sent you a PM with a few CPAs that fit most of your criteria.