All Forum Posts by: Lisa H.

@Joe Villeneuve good advice. Thank you. 

I have just been notified that the house I am in contract with--that currently has tenants renting out--has been late with their rent for the last 3 months due to a job loss. I just got confirmation he got a job but obviously the only thing I can verify is his rental tenant history.  Which isn't much since he started renting in April 2024.  There are 4 months of on-time payments consistently. Then 3 months of late payments consistently (the last 3 months). With no rent for this current month. I also did some investigating online and see the renter has a tendency not to hold down a job.

I offered asking price (fair market) because it was the sellers bottom line and the fact there were already tenants renting. I'd cash flow immediately without having to pay for a PM to place tenants ( I am out of state).  I am unsure if I should proceed.  The house has some great pros:

• Newer 2000's home with renovations in the last 4 years

• Renovations include: paint, lvp, toilets, vanity, ceiling lights/fans, roof and HVAC

• Tenants look like they are up keeping the house decently. Very clean and mostly organized.

The rent is at fair to maybe even above average. The property hit's the 1%.  Actually 1.45% but when factoring in PM, vacancy and renovation percentages, my cash flow is only $160.  Which I know is low but am looking for long/mid term equity too. Not just cash flow.  

Thoughts?

@Andrew Steffens Thanks! This gives me a good start to research. 

I have never invested in STRs.  I could use any and all advice:

1. How does one acquire the necessary information in determining average monthly income?

2. The properties I am interested in seems to run like a timeshare (its not). How do you determine what type of ownership it is?

3. What if I can't get insured? Still a good income property?  Seems like ocean property won't be insured anyways.

4. Although I have vacationed many times and love the area, any information on Pismo would be great--from a business perspective.

Any other advice, tips or tricks are welcomed!!!!

That might be a good market too. I thought of Reno and the proximity to Tahoe. It would be further for me to drive to since I’m in San Diego. What areas are in high demand? I know nothing about Reno. 

What cities do you think will boom in the next 5-10 years? I know, the million dollar question. I may be selling a property in California and cashing out of some equity in which I want to put on my next investment property. Cash flow would be nice but I’m more about gaining equity.

I thought Vegas might be a good bet. The high speed train is actually finally getting built. Also a massive movie studio is relocating there. I’d probably like to stay in that area (Summerlin) but maybe priced out already. 

Anywhere else in the country that you feel is the next high end city on the brink of development?!?!?!?

@Joe Homs

I’m pretty sure my property taxes will adjust. That prop passed not too long ago that I believe forced inherited properties to be recalculated. My numbers reflect that increase of taxes.

As for managing the property Nah…I love peace of mind not having to manage it. Maybe one day I could take it over. Not today. 

Good questions though to think about. Thanks! 

@David M. all wonderful questions to ask. I need to think about it all. I believe I only have to pay taxes on the appreciation amount when I inherited the property. I did get an appraisal at time of death. 

@Steven S. great info. Yes, the figure is closer to 6%. I've only had the property 2 years. It's only appreciated 25k. I've been thinking of buying a sfh to get rid of the $500 monthly HOA. Or buy in another area that will appreciate more. Hard to predict.