All Forum Posts by: Bradley Buxton

@Logan Sierra  This is a question that comes up quite often when we talk to investors, how to house hack when one partner is not on board. Communication is the best way to do this. First, explain the numbers and the delayed gratification of wealth building. Set dedicated timelines for living in the house and improving value, how long will the repairs take. Involve the partner in the search and calculations of future value. Finally, choose a place that might need updating or adding another bathroom or room rather than a full fixer. In the Reno, NV market we see many houses that have been lived in for years by older generations that are well cared for and clean but are very dated. These also make great rentals with minor improvements to flooring and paint that can get market rents.

Also check that the property is actually zoned to be a business and especially a daycare and are they permitted and insured. With 3 buildings can you rent out as separate units?   I agree with the other that there is a lot of due diligence here to be done with the math and the operations.  

If you just moved to the area a house hack can be a good way to start with an income property and you get a place to live while figuring out the best neighborhoods to invest in.  You can then grow your portfolio with the other strategies.  

Any destination with limited hotels.  Lake Tahoe has a shortage of hotels and owners are seeing returns of 150-300K per year.  The properties are a large capital investment but with no new developments around the late the appreciation is strong. 

I agree with Jordan that house hacking is the best way to go because you can get a lower interest rate and get to practice being a landlord while being on-site.  

In Reno NV, we are seeing properties in the 300K range that are in fringe neighborhoods where the surroundings are being redeveloped with new apartments and close to the hot spots in the city.  We also have tech industries moving into the city and surrounding areas.  I would recommend looking for places that have up-and-coming neighborhoods, tech industry investments, and geographically limited building starts becase you are looking to hold longer term. 

Areas like AZ, FL, ID have seemingly unlimited growth and could in the future have an oversupply; they are also in the past have been more volatile markets.  

Do the math and work with agents that understand the math. 

Quote from @Logan M.:

I have been seeing a lot of people starting to talk about rates coming down and prices shooting up.

Is this what 2024 and 2025 will look like?

I am very worried about affordable housing and what is going to happen if supply does not improve.

The Fed is unlikely to lower interest rates below 6% in the next two years due to the risk of inflation coming back as it did in the 80's.

However, popular places to live will continue to be popular despite interest rates. In the Lake Tahoe area, retirees are selling their California homes and finding that living in a resort town is affordable. In Reno, investors are buying deals now as more people from California will continue to buy because they see the potential for appreciation due to limited supply in the greater Reno areas. 

I'm looking to connect with real estate CPAs who specialize in working with investors in the Lake Tahoe, Reno, and Northern Nevada area. We are interested in CPAs who have a good understanding of the unique tax and financial challenges faced by real estate investors in our area. 

Any suggestions would be greatly appreciated. 

Quote from @Sarah Baniewicz:

Quote from @Bradley Buxton:

So I would having my property manager show the condo and then give the keys. I would have the person contact me with any issues

@Sarah Baniewicz

It will also depend on the level of service and the number of doors.  Here in Reno we have PMs that range from 7%-10% but also ones that have a flat fee just for management of the tenant occupancy.  Make sure to read contracts and ask for references.  If you have a bad property manager it can be a a huge headache for tenants and chore to get out of the contract.

If you are planning to do all the maintenance yourself and just need a PM to find and screen tenants you can save on the management fees. I know a couple services that do that. You can keep more of the rental income but are usually on call for anything that goes wrong.  With only one property that you live near it might be worth it to have minimal PM involvement and keep the extra cash flow.

Quote from @Taylor Lamm:

Hello all,  

We have finally decided to go for our first flip.  Looking for a wholesaler(s) to help locate potential properties.  What are some ways to find a good wholesaler, and what would you look for when deciding to work with one?  

@Taylor Lamm 

Wholesalers generally look out for their best interests.  I'm an investment Agent in Reno and we specialize in helping investors find deals.  We do a total market analysis of rent data then calculate all the investment metrics to pick the best ones for your buy box.  We do not buy properties ourselves, that would be a conflict of interest.  We provide tools to you.   I'd be happy to share more knowledge about the Reno market. 

Brad

@Sarah Baniewicz

It will also depend on the level of service and the number of doors.  Here in Reno we have PMs that range from 7%-10% but also ones that have a flat fee just for management of the tenant occupancy.  Make sure to read contracts and ask for references.  If you have a bad property manager it can be a a huge headache for tenants and chore to get out of the contract.