All Forum Posts by: Chelsie Runnings

Hey everyone, the Sonoma County Board of Supervisors approved an overhaul of vacation rental regulations.  Here's some important information for anyone thinking of making a STR purchase in Sonoma County:

Sonoma County Short Term Rental Updates and prohibited neighborhoods as of August 2

Hi @Nadine O. I too left the Bay Area, Some what! I split my time between Sonoma County and Shasta County. however I started House Hacking using the BRRRR method in 2020 in Shasta County. Admittedly, I have not traveled much in my life and wasn't comfortable investing outside of California just yet, so I went further Northern California. I chose this area because the cost of entry is far lower than the bay area, however the growth over the last few years has been great. I watched as business such as Trader Joes, Chick Fil A, Whole Foods, etc. started setting up shop here. Knowing they obviously have done extensive research and development prior to opening up here gave me a sense of comfort knowing they too see the potential. The Work force is strong, the rental demand is even stronger. Yes it's Hot, Yes there are areas that are not great, however the location is not only good for LTR but for short term rentals as well considering the destinations areas near by such as Shasta Lake, Whiskey Town Lake, Mt. Lassen, Mt. Shasta etc. I'm on second investment deal here since May 2020 and very happy with what I've been able to accomplish here as I begin to build my Real Estate Empire.

Hi @Brian Cassanego, I saw you also are in Sonoma county now, I split my time between Sonoma County and Shasta County. I work with many investors who got into STR in the Russian River area, unfortunately, the County has cracked down on STR's in the area. I helped a client secure one of the last permits available for the Forestville area earlier this year. They capped the permits for Russian River last year, and just last month put a 45 day moratorium on issuing any permits outside of Santa Rosa City limits. This cap is for now only set for 45 days,however, I would not be surprised if it goes on longer as home owners are pushing to prevent any future permits. in 2020 I started investing up North in Shasta and Tehama Counties. I am doing Long Term Rentals, using the BRRRRR method however they don't have many regulations on STR yet, with quite a few destination areas that make STR there desirable. I chose this area because the cost of entry is far lower than the cost of Entry for the Bay Area, and the growth over the last few years has been exceptional. With business such as Chick Fil A, Whole Foods, Trader Joes, Etc opening up shop. Redding was also just named 4th best economic small city in America.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $187,000
Cash invested: $12,000

3 Bedroom 2 Bath in Gated Community

What made you interested in investing in this type of deal?

Low cost to get into, massive upside for equity and cash flow.

How did you find this deal and how did you negotiate it?

Local MLS - Bought at the beginning of the Pandemic when the real estate market was shaky. I used this shakiness to jump on a deal

How did you finance this deal?

Conventional Loan

What was the outcome?

 $68,000 in equity increase in 1.5 years. Now rented with $627 cash flow a month. Did a Cash out Refinance to purchase a new property. 

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Represented myself

@Jared Rine, we have not found anything that works for the situation yet.He has enough for 15% down. The purchase price would be $560,000.

Hey BP,

I have a seller that is offering to sell her investment property to her long term tenants. The tenants are non resident alien with IT TIN. The only Lending option that we've found for them is a 7/1 ARM that requires a 30% down. Does anyone know of any other options for Non Resident Aliens with an IT TIN?

Thanks!

.

I had a discussion with a Legal Analyst, Estate Planning Attorney and Financial Planner to get their input on Prop 19. Here's a recording of our discussion!  

https://youtu.be/Qk9fewVzf5M

We have been seeing this in Sonoma County since about April April. We've dubbed it the Urban Flight Syndrome. Many city dwellers have made the jump into Sonoma County taking advantage of the ability to work remotely and use their money to purchase something with more yard space, office space and entertaining space. We are seeing our listings go on the market get multiple offers and seeing our sold v. list price between 94%-105%. We have not seen a slow down, even with our recent wildfires. Inventory is LOOOOWWW.

@Belli Skinner Congrats to your wife on passing her exam! I'm with Better Homes and Gardens in Sonoma as well!