All Forum Posts by: Joshua Young

@Kyle Kreisher I agree with Scott hire a local realtor, Albuquerque is a great rental market so I’m sure you’ll have no issues finding a great tenant. Typically realtors will charge 1 months rent, in most cases. 

@Nathan Thompson I am an licensed agent here and I’d be happy to talk. I’ll send you a private message shortly.

Hey @Nathan Thompson

Based on your numbers I agree a 3.2% cap is on the low side and you may do better buying elsewhere. Here in ABQ, cap rates on multifamily are anywhere between 5-8% on average, obviously depending on where you buy. 

Our rental market is strong and continues to get stronger as new jobs come in from places like Netflix, Intel, Amazon, and Sandia National Labs. 

@Janelle Hicks is correct. Santa Fe does have some restrictions regarding vacation rentals.

Here’s one that may be of particular interest to your situation: 

Residentially zoned: A short-term rental unit cannot be within 50 feet of an existing short-term rental unit, measured at the property boundary. For apartments, condos, or other multi-unit structures with four or more units, no more than 25% of the units can be rented as a short-term rental. No more than 12 permits will be issued for a single multi-unit dwelling. Multi-unit dwellings with 3 or fewer units are subject to the 50-foot rule.

To my understanding, Bernalillo County has no such restrictions. 

Hey @Bill Olivent welcome to BiggerPockets!

I’m a local realtor in the Albuquerque area and have been doing short-term rentals (STRs) for 6+ years.  

As far as STRs are concerned here, our biggest draw is for the Balloon Fiesta in October (which was cancelled last year).

Beyond that, I think it’s very location based, close to more touristy locations (Old Town, Downtown, etc.). Same rules apply probably in Austin. There’s also some STRs that cater to people who are here mid-term (I.e. for work, the film industry, contracts, medical professionals, etc.) people who don’t want the hassle of finding furniture and getting locked into leases. 

Also there’s some more destination type rentals like in the mountains close to Taos and Santa Fe. 

To answer your question regarding SF vs MF when it comes to STRs. Personally I don't think it makes much difference however I would not go large MF but I think 2-4 unit is fine so is single family. My philosophy has always been to go after smaller sq ft units, as they're easier to keep clean and typically have the highest ROI.

Hope that helps

@Glen Holmen typically a lender won’t lend beyond the appraised value ($195K) so the buyer needs to come up with the difference. 

Alternatively, do you have comps that you could use to challenge the appraisal and try to bring it up to the $199K value?

I’m assuming you are not working with a realtor. 

Hey @Keighton Leftwich welcome to Albuquerque! I’m a local broker in the area and would be happy to have a chat regarding the area and what you can expect buying your first property here. I’ll send you a DM.

@Troy Larson if I am looking to purchase a property as an investor/broker the seller may be less willing to negotiate as they may believe I have an upper hand because I'm also a broker, despite it not necessarily being true. It's really how does a seller perceive me being a broker as well as the person they're negotiating against. This by no means always true but it's something to be cognizant of.

@Joshua Larson

As Troy pointed out, there is a lot of extra work and expenses that come with maintaining a license in NM. If you are planning on being an actual real estate broker then by all means but if you are simply looking for MLS access, I don't think it's necessary to be licensed. One thing you also want to think about is, if you have a license and are acting as an investor, you still must disclose that you are licensed in NM as a broker which can come with its own set of consequences.

If it's MLS access you are looking for, the best way is to build a relationship with a broker who can provide you more detailed information if there is any to be had.

Great first name! :)

@Michelle Akazawa echoing what @Jens Nielsen said, Albuquerque has a very strong rental market. Just last week I helped a client rent out a MF property (open house style) and we had 15 people show up and all the units were rented that day. Granted of course it depends what you have and the price range.

As far as neighborhoods are concerned, Nob Hill and NE Heights are both great areas as well as Academy West and around Roosevelt Park and Spruce Park. 

I hope that helps.