All Forum Posts by: Bradley Buxton

@Karen Lauener

Welcome to BP! Laguna is a great area I have some good friends down there if you need some references. 

@Jackson Pudlo

It will take time and energy to manage any property even with a property manager. Starting with something near your market that you know the area, can drive by the property and meet people in person will get you more comfortable with the risk of owning property.  The difference of multifamily vs single family has been hashed out many times on the forums. One strategy is to get a duplex and live in one side and rent the other. Then you can self manage and be on site. Start simple or go all in on a multifamily if you have the capital to support potential losses. Keep the risk in check so you will not be taken out of the game.  What is your soon to be betrothed risk tolerance, lifestyle, time and energy? It helps to have a partner on board. You'll never have all the answers and no one can give you 100% confidence and it will always be a bit scary, get started and be scared. 

@Francis A.

Insurance companies are now considering much more than just zip codes and have become more sophisticated in property risk analysis. They use technologies such as drone flyovers, infrared imaging, and LiDAR. Living in the mountain west, like Tahoe, the risks are obvious. In Reno and metro areas, insurance companies primarily focus on roofs, the age of the building, wiring updates, and water pipes, as mentioned @Cameron Moore. Due to high premiums, expenses increase, and cap rates and cash flow potential decrease. Buyers and sellers are still adjusting to these changes. We now include insurance contingencies in offers for more areas, certainly around Tahoe, but also in other urban interface areas. There are still inconsistencies in requirements, for example, the fire department may approve a property, but insurance companies might still consider it a fire risk. Staying updated and having a good insurance broker is now a key part of your core five (4+1).

@Jake Andronico

As desirable areas near city centers become more expensive and densely populated, there will be a resurgence of suburbs located approximately 10-30 miles outside major cities. For instance, people from the Bay Area are moving to Antioch and Hollister, Sacramento residents are relocating northward and south to places like Elk Grove, and Reno residents are moving to Dayton and Fernley. This shift will increase the pressure for transportation to and from job centers. With a push to bring more manufacturing back to the U.S. and more employees returning to office work, there will be a greater need for mass transit solutions rather than building more roads lowering the quality of living if you want that SFH with a yard.

@Jonathan Almanza

I'm in the Reno Tahoe, NV area. Former Sacramento resident. Open to share analytics for the market up here. 

@Rebecca Gona

STRs are a hospitality business. The better your can run and manage that business the successful you will be. A long term rental is a simpler business model because there is less turnover and the property alone is what is marketed. I can provide you with some CPA and lawyer references that support real estate investors. I'll send you a DM. 

@Mario Morales

I think this is a common question and the value that an agent will bring will vary by individual needs. I have rental data, analytics, and entire market analysis in Reno, NV. Some clients love the numbers and others are not numbers people. We can show them the data either way. If you want to be vary hands on in the process find an agent that will guide you every step. Others are more hands off and want the data but don't need to calculate to the penny. They might only skim an inspection report and trust me to find issues. While owning property is good you can find an agent that brings value to you with out them owning 10 doors. The scientists that sent people to the moon and back have never been into space. If they are actively buying for themselves are they really looking out for your best interests or their own?  Interview multiple agents they work for you and need to be trusted advisors, guides, and direct with issues that might arise. 

@Zachary Young

The Midwest and south are less expensive than the west coast markets. Keep in mind travel time, repairs, and lifestyle to manage the out of state rental. Are there lower priced investments in your area that you can purchase or house hack? 1 bad tenant and a few repairs can wipe your cash flow, time and energy. Building a trustworthy team will be key. 

@Nick Hulme

Making improvements to your primary to make it high quality enough to rent above market rents, rent it. If you can so that yourself then you can save money on the rehab. Once you have enough saved then buy another primary residence and live in that, fix it up. Usually the hardest part is coming up with the down payment. If that is the case is taking on a family member partner. 

@Ashley Mierez

Consider your margin dollars as well. A 1 million flip might only make you 100K vs a 300k flip you get 50K. Then there is the time element with holding costs. An easy flip at 7-10% return might be more lucrative than a larger project that takes longer and more chances for cost over runs.