All Forum Posts by: Niobe Burden Austere

What are you thoughts on STR changing local regulations? Have you had any experience in this area of the country? For instance, here in Lake Tahoe, South Lake Tahoe recently banned STRs everywhere except in town centers where guests can rely on public transport and promote more walkability. While in North Lake Tahoe it seems to be a free for all and they've densely infiltrated local 2nd home neighborhoods to the dismay of full time residents. Its a tough call in some resort destinations. What are you suggestions?

@Matt Huber In addition to my previous comment. Please be sure to research your fire insurance possibilities very carefully. Property owners are non renewed every day. The insurance on my 1100sf rental home was not renewed this year and went from $2100 to $3850. Most property owners are forced to go through California Fair Plan (set up by the California Insurance commission) for their fire dwelling and then buy a secondary for liability and are paying anywhere between $5-10k for coverage annually. Have a very good insurance agent who knows the possibilities, it changes every month. The rental potential is very seasonal. By mid April, the ski vacations are thinking about other things and staying in the bay area and enjoying the green. It picks up again maybe for Memorial Day weekend, sporadic in June, July, August book and then it starts dropping off in September again when kids are back in school. October and November are very sporadic. So don't depend on your STR being booked full time. Do a realistic cash flow analysis before purchasing. Good luck!

Unfortunately, or fortunately there is a reason why all the county jurisdictions are limiting STR permits. It's gotten to the point in North Lake Tahoe area at least that there is no one to work at the restaurants, businesses and service industries and many restaurants have limited hours because they can't find workers. Employees have been forced to find housing in Reno (45 min-1hr away on clear days) and although many still make the commute it isn't reasonable for many and treacherous when there is snow. There is a balance and until the housing shortage is resolved, I agree there has to be limits but I've been hurt by this as well. Frankly, long term renters are much more respectful and it's much easier to manage. Finding people to clean and turnover an STR is not easy these days unless you turn it over to a management company for their fee, and many of them are falling short as well.

I agree with Ashley about west side of Cin….Oak Hills SD. From an investor standpoint, it's a great market for BRRR or buy and holds….stable tenants that aren't as transient and looking for good school district for their kids over shopping and entertainment amenities. Definitely dependent in the type of tenant you're looking for…..not a lot going on in the west otherwise. Prices continue to go up despite continuing inventory coming on the market….but I think if you see a home on the market for more than 20 days these days, there's room for negotiation. These homes have never seen these values but they are still affordable and most are solid and will hold the value. Thanks for the discussion question Jordan….it's been a while since I've been on BP :)

@james wise thanks for the confirmation.  It's all a learning experience :D

Since affordable housing is in such dire need across the country, does anyone have experience with doing developments with modular homes or even doing SFR new modulars? With what I've read, they seem to have come a long way but with wood and steel cost increases are they still an affordable option? I assume they would work in some higher end markets where there is a shortage of workforce housing, if you could find the land affordable enough. Structuring it as a non profit may be an idea? Any thoughts from anyone who has experience in these arenas? Thank you

Thanks @JamesEdward    I was afraid of that.  Getting other estimates is a tough proposition when all the contractors are so swamped.  We paid quite a bit for this one estimate....but yes, it confirms that it may not be out of the ballpark if you want it done correctly and certified by the city.

Dealing with a foundation issue brought to our attention during the home inspection on a SFR we have under contract in Cleveland. The home inspection reported a faulting retainer wall, basement moisture and foundation issues. We paid a foundation/drainage contractor, Adelio's Contracting Co, recommended by our real estate agent to review and give an estimate to complete the work. Are these estimates really accurate or a bit overblown because we are out of area investors?

To excavate and waterproof the basement foundation wall along the west wall, 6' of the north wall starting at the
northwest corner and 23' of the south wall starting at the southwest corner. Work includes:
- Obtain necessary permits
- Remove concrete where needed for excavation
- Excavate along the basement foundation wall and haul away soil
- Remove the existing drain tile line and downspout line
- Once the foundation wall has been exposed, cement parging will be used on any areas of foundation where the block is
exposed. Cracks in the foundation wall will be filled by using hydraulic cement and a rolled on elastomeric waterproofing
membrane will coat the entire foundation where exposed
- Sewer jet the drain tile and downspout lines from the trench
- Install new PVC drain tile with cleanouts, and downspout lines
- Schedule inspection with city building department
- Backfill with #57 washed gravel to 18" below grade
- Reinstall concrete where removed
- Reinstall existing topsoil

Estimate $20,755

As everyone is so booked out these days and we are under discovery phase deadlines, they could only give us a range for replacement of the retaining wall of an ADDITIONAL $20-30K for a subcontractor excavator to remove the existing retaining wall and replace it.

Plus to waterproof the remaining foundation behind the retaining wall is estimated at $6,150

Here are photos of the north and south side of the house and retaining wall -

If you have experience with these issues, your insight would be so appreciated.  

Thanks!