All Forum Posts by: Jeffrey Andrus

Very interesting in regards to 2008

 Have you ever heard of Vacasa property management? I found them on a Google search and from our conversations they seem very professional. They want to charge a 35% management fee do you know if that is pretty typical for the area. I believe they mostly work on the Nevada side of the lake.

Thank you so much for your insights.

As for now the numbers look pretty good. Gross Rents from using Airbnb and other sites are estimated around 50k a year. Even with  pretty high management fees the properties look like they will Cash flow pretty well. My thoughts are that as it stands now that most of the Renters coming in are a Pretty affluent group who may not be that affected by a slow down in the economy and thus would keep coming regardless. Biggest factors for the properties income comes down to how much it snows is in the winter. More snow = Better. 

Pros of buying now :

 If Inflation does go through the Moon then perhaps this is a Great time to Leverage up on properties at stupid low rates that will cash flow well. In a way Vacation rental can be safer as you are not relying on one person/family to cover the costs so you are spreading that risk out to a bigger bucket of people if a general recession were to happen.

Cons. If the overall RE market drops in value due to all the homes in forbearance and people who own vacation homes for Only personal use flood the market as the first property most people sell in a hard times is a Vacation property if they have one. Which would leave me in the hole pretty quickly. 

Which would be fine although certainly not Ideal. But if the property still cash-flowed and I can make my payments we will be fine.

Will Inflation be a bigger factor? Or deflation? and will any of that effect Vacation Rental prices!!??

My Glass ball is looking kinda cloudy so any thoughts would be welcome from people with more experience in the Vacation Rental biz.

 Perhaps that just means I keep playing it safe and stay more in cash for now. Then again if inflation heats up holding cash is Not what I should be doing.... 

I know lots of threads similar to this, but did not see much with the Vacation/Rental slant.

I live just 40 min North In Marysville. You might look for places in wheatland and up Yuba City and Marysville, as Sac metro area keeps growing we keep getting more commuters and prices are much cheaper than in Sac. Commuting is no fun though.. Some people are find with it. Just Listen to BP on your drives :)

Cant ignore the crazys though. In Every Revolution they come for the Landlords they see us as nothing more then "Rent Seekers". Living off the system while making no "real" contribution....

I do think the availability of houses in my area has played a part in my decision to keep the house I am rehabbing as it is only a few blocks away from my current home which will make it easier to keep a eye on the house when I have renters in it. 

Good deals don't come around everyday in my neighborhood so if you get one I guess it makes sense to buy and hold if you can afford to do so.

Yea, good position to be in either way:) I will follow and see if anyone else has any criteria that they use. 

I think it depends on what your cash situation is. If you need the cash for your next deal I would sell. If you already have the cash/financing for the next deal I would keep it long term and use that 25k you would make as a down payment to a cash out refi. 

 I have a house right now about the same #'s as you that I have been struggling with the same decision you have. With the cash out refi for my I think I will have enough cash for my next deal so I am planning on keeping the house as a rental.

With the cash out refi you will not come away with as much cash but you save money in that you avoid all the costs that go into selling the home. So it may be a 10-15 k cash difference vs selling your place or keeping it. If the 10-15k will break your upcoming deal sell it.

Interesting prospect.  I know I got one of these owner occupys for myself and actually lived in it for the year. Did very good on the deal. But this is not a option for most as that house met our familys needs very well.

But from what I understand the enforcement on this stuff is almost non-existent and it is mostly just on your honor. Are they really going to send someone in to see if you are going to be living in it??? I doubt it. And if they do well pay the 10k(if it is 10k and not 250K as another post suggested)

Perhaps someone on this site know how they enforce these Contract Clauses?? Or has actually heard of a case of someone being called out on it.