All Forum Posts by: Jake Andronico

Quote from @Alan F.:

Quote from @Jake Andronico:

Just spoke to a developer in Northern Nevada, and he made a comment that was pretty shocking to hear first hand. 

Apparently, local jurisdictions here are saying they want more affordable housing, but in the same sentence will also say that there will be more regulations, more environmental protections, and more hoops to jump through to develop starter homes. 

This will simply causes prices to be even higher, and continue to constrict demand... 

The Reno MSA already has natural topographical land constraints, and there have been studies about land "running out" here in less than 10 years. 

With people continually migrating from CA, more jobs moving here (Tesla Semitruck factory being built as I type this), I don't know how this gets solved. 

Explore detailed population growth statistics at the Federal Reserve Bank of St. Louis

Releasing Federal Land for private sale? 

I know this is also a National issue, especially in land constricted markets. What do you see out there? 

Curious to get everyones take. 

 I just paid my contractors liability insurance and it went up another 40%. That's a total of120% since 2019. My broker says more hikes to come.

Building codes are getting much stricter and I suspect heading your way. Every circuit in a house is now afci/gfci. Must have solar, ev charger etc.

My materials distributors are expecting more inflation.

Homeowners insurance is still going up.

I wholly expect CA residents to continue to move there (wished I'd bought there! Lol)

So I think its very reasonable for you to assume prices continue to rise there. 

Wow, that's a ridiculous jump in that amount of time.

Our industrial and commercial spaces have been much more lenient, but it needs to come into residential as well. 

Amazing if you already own or are getting in at a price point that makes sense. 

One thing that not many people talk about too is how there is disincentive for current homeowners to curb affordability. 

That ultimately means their property value goes down, and around 65% of the Nation are homeowners:

https://fred.stlouisfed.org/series/RHORUSQ156N

Just spoke to a developer in Northern Nevada, and he made a comment that was pretty shocking to hear first hand. 

Apparently, local jurisdictions here are saying they want more affordable housing, but in the same sentence will also say that there will be more regulations, more environmental protections, and more hoops to jump through to develop starter homes. 

This will simply causes prices to be even higher, and continue to constrict demand... 

The Reno MSA already has natural topographical land constraints, and there have been studies about land "running out" here in less than 10 years. 

With people continually migrating from CA, more jobs moving here (Tesla Semitruck factory being built as I type this), I don't know how this gets solved. 

Explore detailed population growth statistics at the Federal Reserve Bank of St. Louis

Releasing Federal Land for private sale? 

I know this is also a National issue, especially in land constricted markets. What do you see out there? 

Curious to get everyones take. 

@Diana Teng

Absolutely want to visit the areas you invest in. I know investors that have had success not doing this, but it's a huge risk. 

Quote from @Charles Evans:

Quote from @Jake Andronico:

@Charles Evans

Congrats!! But be careful expecting to refinance. Don't expect rates to come down. 

Is this a new build? 

 Whats making you think rates wont go down after a couple years given the new administration in charge? The last time we had this leadership, interest rates were a lot better, no?

And its not! it was renovated from the studs up in 2019!

It might, but it also might not. Just don't count on it. If it doesn't, can you still make the payments? 

Quote from @Craig Jones:

Quote from @Jake Andronico:

@Craig Jones

Super cool property!! Awesome makeover. 

I'm curious, have you run into any insurance issues? 

Insurance was a huge challenge, but BiBerk (a Berkshire Hathaway company) was willing to write a policy for us. Three Insurance (another Berkshire company) would also have written a policy if we had three years of hospitality experience. Our prior STR experience didn't count for them.

Got it. Glad to hear you were able to secure it. It's definitely been a big challenge on STR's, motels, etc. Even in some areas of NV now. 

@Charles Evans

Congrats!! But be careful expecting to refinance. Don't expect rates to come down. 

Is this a new build? 

@Nicholas Nocella

Congrats!! Love the way you think. Do you have cash reserves for capital expenses and improvements? 

Not familiar with those markets, but here is my experience starting at 22 and what I regret after house hacking twice: 

https://www.biggerpockets.com/forums/922/topics/1133476-hous...

@Saul Vargas

$150K is awesome, congrats! However, are you planning to do a 1031 exchange, or is this a primary residence? 

@Craig Jones

Super cool property!! Awesome makeover. 

I'm curious, have you run into any insurance issues? 

@Jackson Pudlo

Congrats!! I grew up near San Francisco and moved to Reno, NV to live and house hack. 

I've done it twice here and it's changed my life. Well worth it and the best strategy to start in my opinion. 

Sounds like you guys have the potential to be an amazing property management team!

SFR's vs MF have pros and cons. There are more buyers for SF homes, but Multifamily properties typically cash flow better as you mentioned.

One downside of MF can be the age, and insurance can be a big issue. If there are newer multifamily properties near you (or properly renovated), definitely something to consider! 

If you can get a single family home and have roommates, that's the most approachable strategy and will really allow you to know rather quickly if you hate managing rentals or not.

Here's my experience starting at 22, and what I regretted from house hacking: 

https://www.biggerpockets.com/forums/922/topics/1133476-hous... 

Best of luck to you!!