All Forum Posts by: Stijn T.

Here in Northern Nevada we are a little bit in a similar situation. The Reno economy is very much based on logistics besides tourism/gambling, we have distribution centers for Walmart, Amazon, Chewy, etc. A big net new employer came in (Tesla's gigafactory is here) motivated by tons of tax and infrastructure incentives.

They are having issues ramping up the staff as the plant becomes more and more operational. Tesla pays better than the Amazon distribution center but they are a bit out of town and have had to get creative, putting in shuttle busses to get staff at the plant about 15 miles east of the Reno/Sparks area. We already had a bit of an economic boom in our housing so skilled labor is at a premium. We were trying to get some work done in our yard and can't find anyone to take it on because it's a pretty small job.

Rent has skyrocketed but so has housing. Housing had already been going up but we can assume that there is some sort of additional impact. Note that this plant is supposed to eventually employ about 6500 and is expected to have an overall job impact on the area of roughly 20 000 in an area of only 400-500k residents of which quite a few are CA retirees. the investors have finally started building new multi-family housing but these 1 bedroom units rent for 900 so that's hardly affordable for someone making minimum wage. 

My experience tells me that:

- These kinds of jobs do not motivate anyone to move to the area. 

- Housing will go up as will rents but I'd keep an eye on the timeline of certain incentives. Due to lack of capital investment from these distributors they seem a lot more flighty. 

I don't have time to write an elaborate response right now, but thanks for the solid feedback everyone.

Hello,

My wife and I are looking at doing a 1031 exchange and purchase a property on the Oregon Coast. We understand that it's not very realistic to expect that a vacation rental will be the greatest investment but this is a hybrid endeavor. Her part of the 'vacation', mine is the investment portion of it. 

We are only just starting our search and have gotten in touch with a local realtor (who happens to be registered on BP) so we can focus our search rather than be all over the place. 

I was wondering if anyone has experience with this vacation rental scenario. Will a financial institution ever take into consideration past vacation rental performance as part of the picture for financing. We could get a decent amount of financing as is, but an additional 50-100k would really open up the possibilities. We would certainly make sure that we could afford the 2nd home with no rental income whatsoever but that's not a scenario we are assuming to be the norm either. 

If banks do look at past rental history then looking at established rental properties may be our best bet. Any ideas?

Investors are the bulk of the buyers it seems but also as time goes on more and more of the folks that had to shortsell their house are able to get their credit score back up and qualify for better loan terms.

I understand this is not a great situation, Nathan, but we are stuck with that first property of course. Your advice is to get out of it as soon as we can or find a way to increase rental income?

I do plan on reading lots on how to analyze rental property potential and valuation. I will try to post more detailed questions in the future.

I think my local area is actually good, because I see lots of properties (granted, they are manufactured homes for the most part) that will instantly create positive cash flow. The question I have is really whether to pay off other debt first or accumulate more because this new debt is actually a money making proposition from the get go.

Hey,

First of all, I am not sure if this is posted in the correct forum. Feel free to move it if it belongs elsewhere.

I am still in the very early process of starting to look into real estate investing, I am not 100% sure it is the most intelligent decision at this point and I would like to outline my financial situation to get some advice on how to proceed.

My wife and I just got married last year, she has a house in Las Vegas worth about 140k which is 60k under water. This house is now rented out but does not flow cash in the right direction unfortunately.

Mortgage (@5.375% + taxes + insurance + HEL on this property (@5.99%) equal $1650 and we only get $1125 in rent.

First question: as she owned this property before we got married, I suppose I do not own any part in this property by default. How can this be changed and what are the costs involved?

Together, we own our residence in Reno worth about $95k with a $40k HEL (@4.25%). It is my goal to turn this into a rental (it can rent for $950/month) as soon as we can afford to move up to a nicer place in the city (we are out of town, in a great area for rentals but it's just a bit too far out).

Our income consists of $3700 (wife's pension) + $1125 rent + $3000 (my income). We have no other debt.

My question is whether it makes more sense from a financial point of view to pay down either of the houses or whether we should look into buying a property that does have a positive cash flow (there seem to be quite a few available in the Reno area) and use the left over equity from our Reno property to do so.

I don't like the idea that we are stuck with the Las Vegas property at this point and would logically conclude that paying down that property until we have a situation where the equity is at least zero is the first priority. But I am a noob so I ask you for advice.

Feel free to ask for any additional details.

Hi,

I have only just registered on here and am already amazed at how much great info and opportunities seem to be spread all over the forums. It only adds to the excitement of my real estate investing ambitions.

My name is Stijn, I have just migrated to the US (initially to Vegas but moved to Reno now). My wife and I were forced to buy a property with cash because she is upside down on a Vegas property and I didn't have any credit history or job so it would have been impossible to get a mortgage.

Now that we have moved to Reno, got our house and found tenants for our house in Vegas I am starting to look at creative ways to take advantage of this real estate situation that's currently out there. I am pretty old fashioned in my views of the real estate market, consider it very safe (which it is much more in Europe than it is here) and generally the best investment for the long term.

It is our goal to build a portfolio of rental properties that generates some instant cash flow but due to lack of funds right now I may even consider trying my hand at Lonnie deals. I will post another topic where I will ask for some general financial advice.

This is getting too long so I will leave it at this, I hope to pick up lots of info from this community and hope to give it back when I have been able to get some experience myself.

Have a great day, I'll be all over the forums for the next few months I'm sure.

Chancard