All Forum Posts by: Mike Hottinga

@Chris Carpenter It really depends on your goal. There are lots of STRs here in havasu so it is a model that works. I think you should talk to someone that has one and get there opinion on operating. STRs are more work to manage but returns can be higher. Air DNA is a resource to check out, also just browsing STR listing to see what you can rent it for. Competition for housing is fierce here in havasu like a lot of cities since Covid. Consider your exit strategies as you will need about 25%+ down to get to break even on property here in havasu as a long term rental.

As for buying a long term rental cash in another market, with a $100k you could put $50k down on two properties and split the risk and leverage your money. BP insights is a resource for determining your market, you can can put in the work to find the same data for free. In the mean time with your 12-18 months network and put it out there what you are looking to do, an opportunity may arise

@Ryan Smith

There is a guy on here, John D I think, that has closed on a few STRs here recently in Havasu. He typically posts in the Havasu threads, so I would expect him shortly.

@Ryan Smith

Hey Ryan, I moved to Havasu about 10 years ago and started looking into real estate about 3 or 4 years ago. Havasu is a very west coast type market with low rent to price ratio, not much high paying industry in town, and more appreciation than cashflow. I have seen people have sucess with STRs. As far as doing a BRRRR, construction is crazy busy right now and hard to get contractors to show up for smaller jobs. It can be done, just will take longer than you think. Most "rehabs" here are lipstick on a pig. (Paint and flooring) There are some things you need to be aware of when buying older houses here. Let me know if you have any other questions or would like to meet up and talk about specific things in Havasu.

Mike

@Adam Newcomb

Yeah, 08-12 was all the same depressed period. It turned around fairly fast after that and has been a very hot market with lots of new construction going up in the 5-600k range

@Adam Newcomb I have been in Havasu for 10 years and can give you some insight. The city is not that big so it only takes 15-20 min to get any where. What are your specific questions?

@Parker C. Snow my advise would be to keep educating yourself and be patient. Educating yourself will allow you to understand why you should invest in a particular market. I have been in Havasu 10 years and am fortunate to have one of the few well paying jobs in this town. I looked at sub $250k SFRs and 1-4 multifamilys for 3 years and couldn't find anything that worked number wise without $100k+ down payment (2015-2018). I changed plans and bought my 3/3/3 sfr and rented the 2 other rooms. I was close to break even monthly with 2 roommates, but now only have one. Home prices have climbed fast and rents have been flat.

Instead of just saying yes or no, why not get a bid or two and show your tenants the cost vs reward and work them through their request so they understand why you do not want to do it. I have used this approach with my roommates and it seems to ease the response to "no" and I don't look cheap or a jerk. I also learn what it costs to do this type of project and meet new contractors, so it is win/win.

I originally wanted to house hack a duplex here in Havasu, but at $450K+ price and only renting $800-1000/unit it did not make sense. (prices are high and rents are low here in my local city). After looking for 8 months, finding nothing worth buying, I started to look at SFRs and found a 3/3 for $260K. I could rent 2 bedrooms out and make $1000+ since I travel quite a bit. Roommates can be annoying at times, but for as little as I am there it works that they pay $1100 of my $1235 mortgage payment. Now a year later I am looking for a duplex to buy. Everyone will have their own unique strategy and "unfair advantage" when they get started. IMO the key is to get started and take action.

Depends on who you rent to. I know many people here that have been renting their house out to the same snow birds for years. There are tons of duplexes around and there is always someone living in one. I plan to buy a small amount of units here because I am not a huge fan of the city economics. All the new inventory going in is 300-400k+ housing (cheap to Cali people). Few local people can afford that. Strs are great when the economy is good, but when it turns havasu goes bust right along with it.