All Forum Posts by: Christopher Robert Noland

Hi BP Community,

I'm looking for advice on whether I should rent out or sell my home in Sacramento, CA. I’m moving out of the house soon and will be living rent-free with my wife at my parents' place in the Bay Area due to some recent life changes.

Here’s a breakdown of my situation:

• Location: Sacramento, CA (4 bed, 2 bath, recently renovated)
• Current mortgage payment: $3,940/month (including escrow)
• Mortgage balance: $475,000
• Current home value: $515,000 - $535,000 (based on comps)
• Rental estimate: Property management companies are quoting $2,600/month (with fridge/washer/dryer included), but some websites suggest it could go for up to $3,000/month.
• Planned budget:
  • $540/month for capital expenditures and maintenance
  • $100/month for lawn care
  • Tenant to cover utilities (gas, electricity, water)
  • 7.5% vacancy rate

We bought the house thinking it would be our forever home, but with our current situation, I’m trying to figure out the best long-term plan. Here are my main concerns:

1. Cash flow concerns: Based on my current mortgage and projected rent, I'd be looking at negative cash flow unless I refinance in a few years. But we won’t qualify for a primary residence refi anymore, and I’ll need more equity to refinance as an investment property.
2. Future investment goals: I want to own rental properties in the future, but I’m not sure if holding on to this one (which we already have) is the right move, or if it makes more sense to sell and build up savings for a better investment down the line.

I’d really appreciate any advice on what I might be overlooking here. Should I hold on to the house, despite the potential negative cash flow, with the hope of refinancing and future appreciation? Or should I cut my losses, sell it now, and look to invest in something else later?

Thanks in advance for any insights or perspectives!

So there is a 20 unit building I'm attempting to buy, I made an offer of 1,500,000, 60 days inspection period and cash close, need to see 3 years of bank statements as proof of income. Owner came back at 1,550,000 with 30 days inspection. Sure that's fine but.... the owner said he used multiple bank accounts to collect rents and thus can't provide the 3 years statements since they bought 2022 so not 3 years. How else can I verify past performance? I would assume asking proof of income on something like this is not unusual to request in a sale. I also know they had one deal fall through after 4 months under contract and they want to sell because they are having trouble managing remotely. My only backup plan if I can't get verified funds is to assume the worst and to drop my counter offer even lower than my original due to the risk I would be taking on, and then when I do my in person inspection try and guess what rents are fair market for the empty units, and ask as many tenants as I can what they pay in rents monthly.

Hello,

I have a question about a strategy. Can you buy a house in an "Opportunity zone", rent it short term for the rest of the year. Get 100 hours of participation to become a real estate professional. Bonus depreciate it at 60% minus 25% for the land. Then the following year rent it long term for 10 years and sell it for no bonus depreciation recapture? "Because if you hold a property in a opportunity zone for 10 years you don't have to pay your bonus depreciation back? Would that work or no?

I finished a BRRR in the Smokies- now I'm short term renting it out. Losing money but created a ton of equity.

House is amazing and I want to hold long term but hemerging a bunch of cash right now.

What do I do?

Thank you 🙏 

@Hamidou Keita I would recommend if duplexes are limited if you can get a 4-5 bedroom house and either rent by room for house hack or splitting a big house into 2 and adding a kitchenette and separate entrance as a more cost effective ROI option

Hi everyone, I am just starting out in real estate investing. I would like to know what makes a good deal in the Bay Area, California (like in SF where I will be working) and how much money do I need to save to make the deal worthwhile? Should I start with a condo (about $400K for a studio/one bedroom) since that would be less than a single family home (800K+)? Even with house hacking with a lower down payment (which I am not sure would work if I get a studio size condo), I would still need to pay more out of pocket than what I would pay renting (I can get rent by splitting a studio with a friend for about $1200/month). Has anyone bought an investment property in the California Bay Area recently that could help strategize any ideas on how to move forward? Thank you!

Hi

I can't find anything in Ohio code either way about the topic in the title. I have rental house with a separated detached apartment above a garage that I plan to sell. Tenants are in both units. Once they get wind of my wanting to sell they may or may not want to leave; they are both on month-to-month terms now. Do buyers have the legal authority to give the tenants 30 days notice to move out immediately upon the deal closing if they don't want to continue having them as tenants?

thanks

When I was traveling in Europe, Airbnb's often included a bottle of wine. I think it would be a nice touch for my STR, but I'm not sure about the legalities. Any doing this, or have any experience or knowledge to share?

@Natalie Johnstone

You can purchase property anywhere with a LLC from any state. What you will be required to do is register as a foreign entity in the state the property is in if it's not the home state.

I recommend speaking with an attorney and your cpa on if a LLC is even required and the state(s) to incorporate it in. Not all property needs to be owned in a LLC and does not have to be in a random state.