All Forum Posts by: Karen Margrave

Buying a property with a tenant that is in arrears was the first red flag. CA is a pro tenant state, and getting people out is extremely difficult. Most tenants not paying rent don't have the money to go rent another unit, and their credit score is probably already in the tank, therefore; offering more money to make the transition doable for them is probably the route I'd take. Standing on principle with someone that is in a desperate situation doesn't make a lot of sense. 

I've never done a Lease with an option before, but I have looked into it. You actually need 2 separate agreements. There's the Lease, and then there's the Option to Purchase. The lease spells out the terms of the lease. The Option to Purchase spells out all the details of the Option. You'll want to consult an real estate attorney so that you make sure you CYA on deposit, terms, and what happens if something doesn't work out as it should. Good luck. 

@Joe S. Zz Years ago, as a moderator on BP, I saw an uptick in the interest in STR and got BP to start a forum specific to them. BP is a REI Website dedicated to educating investors on the many niches in the market. We are where people come to learn. It's not so much bragging, as exchanging stories of success, and helping ithers wanting in. As AIRBNB became more popular along with VRBO and other sites, there was no keeping STR a secret. However, not all STR are in high demand vacation areas; and even those, have operators with less than ideal locations, amenities, etc. As with every investment, compare 🍎 to 🍎 .

You're right, Zillow isn't a good indicator of value. How old is the house? What condition is it in? What is the demand for housing like in your area? Are there a lot of rentals, or few? Are there a lot of homes for sale? What is the population of the area? What is the employment, is it broad based, or mainly service industry jobs, etc.? 

Have you looked in the classifieds, online, etc. and searched for rentals, or homes for sale in your area? Look on Realtor.com too. Do you know any local real estate agents? You want to be careful giving out the information to anyone that might want to swoop in and buy it out from under you. 

Also, if you decide to move forward, be sure to get inspections. What seems like a good deal can easily be a can of worms if there's surprise repairs. 

Where is the most demand in your area, as a Project Manager, or as a tradesperson working on jobs? It seems like there's higher paying positions for Construction Project Manager than a tradesperson, and you learn a lot more about the whole development process. 

We have done stuff in the La Pine (Remodeled from studs a MFD home), New Construction in Three Rivers (Subdivision was Oregon Water Wonderland 2) and in Sunriver, OR (a remodel). I love the area. However; prices are very high there right now, even in the outlying areas. 

I can tell you, Sunriver is 100% set up for STR. They allow guests use of the amenities, etc. with the property owners passes. They also have fractional ownership on condos, etc. so when you see outrageously low prices, that's what it is! It's a great way to get your feet wet, and learn the market there, with less risk.

La Pine is beautiful, but gets a lot more snow than the city of Bend. It's about 30-40 minute drive. There are vacation rentals there, as it's a great area for waterfalls, river, fishing, etc. However; finding cleaners, etc. may be a lot harder. 

Are you planning on building yourself? If so, it's an open book test for a contractors license. If you are planning on hiring subs, you'll need to get licensed as a Developer. They're very strict on that, and you'll get fined, even if it's your own job, and you hire subs. 

My niece is the top agent in Sunriver area at Berkshire Hathaway, @Christine Larsen. She also handles properties in La Pine, Three Rivers, etc., and would be happy to help educate you on the area. She's the one that found all the properties we did in Bend. Her son in law is a contractor, and can answer construction questions on costs, etc. if you're hiring a contractor. 

@Bruce Woodruff I agree with most of Scott's points. However, all real estate is local. My local market is becoming stagnant. Interest rates have stopped sellers from listing, making it difficult for the buyers (and there are buyers). Building costs and red tape in CA make new construction, which is sorely needed, unreasonable. Rents are high. The cost of living (food, energy, fuel are ridiculous) add to that the difficulty finding insurance, and it's a mess.

Then, what's going to happen with China? If their economy falters, it's all bets off. Oh, and now the talk of mask mandates, new vaccines, and an election season. There's no telling what lies ahead. Sit down, buckle up, and hold on! 

@Ismail Sogbaike In northern CA, title and escrow are usually handled by one company. It's customary for both parties to split. It's paid at closing. When escrow is opened and title insurance is ordered, which triggers a preliminary title report showing liens and encumbrances. You'll need to determine the process where you are.

@Kevin Sindorf I've sold properties to BP members, and all have been due to them reading my posts, or coming to a meet-up.

I've read posts others about buying leads from BP; and it doesn't seem they're high quality leads of hot prospects, but lookieloos.

Joe, I was just talking to someone the other day down in So Cal, that was asking about the Meetup I had started in Lake Forest. I told them you took it over when I moved, and I thought it was still going, but wasn't sure of where. I'm glad to see you're still doing it! Are you still working as a broker too?