Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Mike Bolen

Mike Bolen has started 6 posts and replied 84 times.

Post: Location for a STR near the Bay Area

Mike BolenPosted
  • Investor
  • Napa, CA
  • Posts 95
  • Votes 62
Originally posted by @Shauna Abbott:

Look into the properties at Silverado Resort in Napa Valley. You can legally rent them as short-term rentals, and for a very hefty price (around 50% I believe), the resort will actually do all of it for you. Otherwise, you can go the Airbnb route and manage it yourself or with someone local. Good luck! 

There are several resorts in Napa Valley where you can buy and rent out the property nightly. One is Silverado but most of Silverado Resort prohibits nightly rentals, a few of the condos do allow nightly rentals some with 7-day minimum restrictions. 

Prices have run up so high, the numbers on recent sales, $850,000 for a 2 bedroom condo make them money loser deals. Also, keep in mind cash deal purchase is required as I have not found any lender who is currently doing loans on STR condos below a 9% interest rate. Even then a large downpayment is required.
 

Post: BRRRR a Mobile Home near Napa, California

Mike BolenPosted
  • Investor
  • Napa, CA
  • Posts 95
  • Votes 62

Is the mobile in a mobile home park or large lot? Also how far from town? Some of the far-flung mobile home parks are not desirable. 

Right now in California, there is an eviction moratorium until September 30th. Do you belong to the California Apartment Owners Association? If not join, you'll find multiple attorneys skilled in eviction law. https://caanet.org/

Post: Will tier 2 markets overtake tier 1 markets?

Mike BolenPosted
  • Investor
  • Napa, CA
  • Posts 95
  • Votes 62

I agree with @Justin Thorpe I think folks will go back to previous work styles. There are synergistic enhancements to a workflow that can only be performed when a group is working together in an office. While Zoom is OK it's not a replacement. I actually see more of a job elimination potential for anyone who does work from home. If you can work from home why not get a foreign-educated and foreign-based employee who will perform the same job for a fraction of the cost?

Post: Regulations for Napa

Mike BolenPosted
  • Investor
  • Napa, CA
  • Posts 95
  • Votes 62

My company manages many licensed vacation rentals in Napa Valley. In 2008 the city of Napa issued roughly 150 permits to homeowners for overnight accommodations. Those permits were not transferrable, so once a house was sold the permit was retired, permanently. In 2017 the remaining 40 permit holders lobbied the local government to make the remaining permits transferrable. The city council passed an amendment to allow transferability on those permits in 2017, BUT those permits are tied to the deed and cannot be transferred to another property. So you must purchase one of the 40 houses with the permit in place. Currently, only one such property is for sale https://www.zillow.com/homedet...

Short term rentals are not allowed anywhere outside city limits in Napa County. Napa Valley is VERY hostile in policing non-permitted short term rentals. Both the city of Napa and Napa County has hired a 3rd party company and scours the internet, does research, and probably makes fake bookings to find offenders and then report them to city/county officials. https://hostcompliance.com/

Napa Valley holds the distinction of being the only location in the United States that has actually arrested and imprisoned an operator of a non-permitted short term rental. Others have been fined as much as $150,000

I have never met anyone in Napa Valley who has run a furnished 30> monthly rental and was pleased with that investment. Not to mention your investment is then covered by draconian Bay Area tenant laws which include a current moratorium on evictions. 

@Jay Hinrichs No permits being issued unless someone surrenders theirs which has only happened once since 2008! The waitlist has over 40+ people on it. 

I own an office/warehouse building near the corner of Devlin and Airport roads. 

First I'm not a Realtor but my company does own many rental and investment properties in Napa & Solano county. If your property is located in Napa county and not the city which I assume by the lot size mentioned that would be the case it sounds like you did the conversion into a 2 family without permits. Multifamily is not allowed in the county except in very limited cases, maybe yours is one of those exceptions albeit unlikely. 


Three potential issues @Michael Cavalli

1) If you rent the property and some calamity occurs, earthquake, fire, tenant accident, whatever and the tenant is hurt or killed on/in the property that was converted without permits you would be criminally liable. 

2.) If the property has non permitted work it will be near impossible to secure a loan for a buyer to purchase the property. A simple review of tax records (1 click on the MLS) and it will show if your MLS entry (beds/bath/Sq ft) matches tax records. If not most seasoned agents will not even show the property.

3.) Price, in the real estate bull market we were in pre COVID-19 if you didn't receive an offer in the first 3-4 weeks price should have been adjusted down 3%-5% and repeated every 3-4 weeks until sold. If you go more than 90 days on the market without an offer it's price, a major issue with the property or both. 

I record The Napa Valley Real Estate Report daily from my building at the Napa airport. We cover properties for sale in Napa Valley and Solano. Since I'm not a Realtor I break down properties in detail in a way no Realtor ever would. We have over 1,000 viewers from Napa Valley daily, check it out https://tinyurl.com/uftxleh

In my opinion real estate is headed down. If you can unload assets at pre COVID-19 levels do it now! There is always someone who buys at the top. Virtually all data suggests lower prices over the next 12-18 months. My quarantine project has been a YouTube channel about real estate investing, I shoot from the Napa airport. I've done an episode every day since lockdown  and cover a ton of data on market conditions plus local Napa Valley, Vallejo and Solano county deals. 

@Jay Hinrichs prices in downtown dipped into the low $100,000's back in 2009-2010. Incredible run up in prices over the prior 10 years

This one listed today https://tinyurl.com/yc2949fa Is this the licensed vacation rental you are looking at? 

Post: Attorney in Solano County, CA

Mike BolenPosted
  • Investor
  • Napa, CA
  • Posts 95
  • Votes 62

I have one. Shoot me a message and I'll make an email introduction. Thank you