All Forum Posts by: Bradley Buxton

@Ivette Raygoza

The "right" market is the one that will fit your goals, budget, time, and lifestyle. There are many great markets which you can be successful. Maybe start with markets that will not work. For example, if traveling to the Ohio for 3 days to check on properties is not feasible then pick a market in western America. If your goal is to have a short-term rental to offset W2 income a more tourist-driven market might be better than a high population growth area. Some people don't buy in places they won't live. It is good to look at the data such as appreciation, population, and diverse industries in an economy. It might help to eliminate markets where you won't invest. Then narrow your search to areas in those cities.

@Samuel M.

A townhome generally has an HOA, a smaller yard, and possibly a shared wall. This can be a good choice if you do not want yard maintenance and the benefits that come with an HOA, such as a pool, insurance, and building maintenance. You also get the downsides of the HOA rules with restrictions on what you can do such as short-term rentals. Neighbors can be lame anywhere. Single family or detached homes you are in control and pay for everything. There are tradeoffs to either and both can be successful rentals.

@Lee Lance Leoncio

There are still BRRRR deals it takes more money and more effort to find them. The hunt-and-peck method is time-consuming. The successful in my market in Reno Tahoe are buying higher-end and always ready to buy when an opportunity arises. Many other people competing in that space for easy projects at below-market prices where the numbers make sense. The high interest rates make it harder to do a quick BRRRR and you may have to hold a bit longer. Your market will vary from others based on various factors like demand, inventory, and distress in the market.

@Phillip Wong

I work with many investor clients and have some references for CPAs who specialize in working with real estate investors. They are based in Reno, NV, and have many CA resident clients. I'll send you a PM.  

@Adam Watanabe

Converting a garage is not the best idea for the exit of a property. Many people still want garages for primary residences. By having a garage converted, you limit the value of the home and the buyer pool to investors. At 120k/2k that is 60 months or 5 years on the return. @Dan H. has some good insights on ADU conversions.
Generally, it would be better to put the $120k towards the down payment of another property so you can gain the equity even if the cashflow is breakeven. 

@Craig Jones

Do you think this will make residents reconsider the status quo of not really having any STRs the last few years? What has been the negative economic impact?  With the demographic change up at the lake over COVID, there might be a renewed call to ban all STRs outright. 

@Mark Driskell the way the law was written was the issue, not the ban itself, had they banned STRs outright then it might have been upheld. It will be a cautionary event for other towns on how to write a ban. 

@Andrew Steffens I live on the north side of Lake Tahoe and it will likely not have much of an impact because of the different activities that bring people to the Lake. It would be interesting to know if there are shortages of short term housing. It could have an effect on Stateline in Douglas county because they have fairly tight restrictions on STRs if there in an increase in inventory from the city of SLT.  I'm sure on busy weekend but the hotels have many rooms that are available. 

@Shaun Ortiz 

Good question to round up everyone selling in their market. Short answer is the market you start investing in thoughtfully with a strategy. Everyone's situation is different and those differences will determine which market will be most successful. If you love the Midwest, then Columbus is a great market. My choice is Reno, NV because I live in Tahoe, it's close to CA, low property taxes, landlord friendly, and no state income tax. I'm not sure it's for everyone but there is plenty of opportunity for success. You can find success in any market with the right strategy. 

Thank you for your service George! Welcome to BP! Having a VA loan option is a valuable resource. All the best on your investment journey.

@Lilia Matlov

Insurance companies are trying to figure out a new business model because their profit margins have eroded. Sounds like a lawyer clause rather than a lobbyist issue. If they file for bankruptcy, would they even have the money to pay out claims?  There are multiple options out there and it's more important now than ever to shop around.  

@Ryan Waller

Talk with an insurance broker and shop around. Up here in Tahoe we write insurance contingencies into the offers. Companies are looking at electrical, plumbing, and roofs, in addition to the disaster risks. Also make sure the tenant's lease has a requirement to have renter's insurance and make sure your carrier knows the lease. DM me know if you need some insurance broker resources for CA or NV.