All Forum Posts by: Jenn A.

@Will M. I have rentals in 3 states and watch markets in 1 other. I've noticed a general trend of slowing recently all over, most heavily in California. IMO that's not scary at all. 1. Lending restrictions became VERY (ridiculously) tight in 06 and beyond and have not loosened to pre-06 levels. Banks are GENERALLY lending to people who can actually afford it with solid products. 2. The affordability index is solid. This is a ratio between the median income of an area compared to the median home price. If 20% or less of an areas population can afford to buy a house then you're headed for trouble. In my area of CA for the past 6 months prices have stayed the same or gone down a little but median income has risen. That's an excellent sign. That's what a housing market should behave like. 2006 was not normal. And it extended for so long because there was too much market manipulation. Right now the economy is humming, job movement is high which causes wages at all levels to rise, job creation numbers and gdp are at healthy levels. 3. Construction drives the market and you can't spit anywhere in this country without hitting two new developments. If you're ever not too sure about a market, look at what the big dog builders are doing. They hire swarms of analysts whose entire life is studying trends and markets. 4. You're in Vegas...you are the closest pit stop to the largest market in America (So Cal). CA restrictions and taxes are strangling businesses. NV has some of the loosest restrictions and friendliest taxes. Your CA transplant job market and net migration is high and will continue to be so. 5. Get in the game or you'll be in the nursing home wishing you had!

Thank you for all your thoughts. Super helpful! There's obviously more details to the story and lots of lessons learned here. It wasn't a junky AC unit (6 years new). The issue ended up being a warranty item. This was a case of a bad property manager (that we fired). And yes a vendor database is gold! But something you don't usually keep up on when you have a property manager. I love the idea of a bonus instead of a credit. You guys are right, it sets a bad expectation. We decided to offer them an option: a gift card for groceries or a new shade cover for the backyard. Hoping they pick the shade cover as it will be both an improvement to the property and a write off. The lesson for us here was to always periodically check up on your property management. We aren't quite sure yet what systems to put in place for that. Had considered maybe a yearly tenant survey that, if returned, gets them a $10 gift card to coffee or something.

This summer in the middle of the heatwave, the AC went out on our rental. It took four different technicians and about 5 weeks to finally fix it fully. It would work for a little then go out again. The tenants have been patient and gracious. We have been very responsive to them also. Even spending $1000 to buy 3 portable units so they could sleep at home. They have kids including a baby. During this they spent several nights at her mom's, at out a lot, and now have a high electricity bill. They are caught up on rent but are struggling to pay. We are thinking about giving them a one time reduction in rent. Looking for opinions, pros, cons.

Refinance and the purchase was a little over 6 months ago. We waited for the seasoning period to be able to get value.

Is there anything you can do when you disagree with the appraised value? The area has been in an upward economy for several years now, yet the appraiser is valuing the house LESS than the county assessed value. He is refusing to call a room a bedroom. It has an en suite bathroom, a closet and 2 egresses but he is saying it's not a bedroom because it has an exterior door to a patio area. After he did the appraisal one of his own comps sold again very close to the value we were looking to get and he still stubbornly refuses to re-consider his value based on one of his own comps. He is completely stuck on the price we paid for the house, which we did get a great deal. But a house's value is its value no matter what we paid for it. Any thoughts???

Really depends on your long game. If youre planning to sell in the next 3-5 years you could end up replacing it twice to fix and sell. If youre holding for 10+ years, consider tile or laminate. Costs $1-2k more than carpet but requires less maintenance and replacement. She can buy her own area rugs. Definitely bring rents to market whether you replace the floors or not, unless you have an extremely good reason youre not already.

It seems like finding the needle in a pile of needles, but I'm hunting for a professional CPA who understands real estate and corporate formation, etc. Has anyone had success in this?

There is a real estate investors meet up on the first Saturday of the month at 9am at Ryan's Bros Coffee in Temecula. All are welcome. It is very informal and it's free. We all just share success stories and bounce ideas off each other and network. Hope to see some of you locals there!

I wouldn't put new kitchen cabinets or new anything into a rental unless you absolutely have to or if you were prepping it to sell....also if you're going to cash out refi, use the money for a down payment on your next property

Wow guys! Thanks for all the info thats perfect! My husband was born in Sioux Falls so we are excited to invest in the area. Sorry I should've clarified the financing/seasoning....buy cash, do the rehab, then get an appraisal and cash out to % of ARV and not have to wait 6 months. At least that's the plan. Thanks for the referrals! I will be following up and telling them who sent me. @Chris Pohlson going off your prior post I have been working with Jackson and he's been super helpful so far!