All Forum Posts by: Rachel S.

Again, if your tenants sees deals and wants a reduction, I'd offer a concession first. Are there actually good deals out there? It's possible your tenant is seeing rents drop generally, but doesn't actually want to move. Maybe he's just angling for savings!

I would think so. Moving is a pain in the *** and there are associated costs with it. It might take him a while to recoup those even if his monthly rent is less. Plus, you never know what you're going to get with a new landlord. 

I would say no. If he actually decides to leave, then I would offer a concession. That way, you are not really backing down, just trying to keep a good tenant and I would present it that way. If he still wants to leave, I would let him. Seems like dropping the rent opens the doors for him to threaten to leave every time he decides he doesn't like something in his rental agreement.

@Rachel S.

I started a Social media business in my senior year.

Awesome. Good for you! 👍👍👍

@Rachel S. yes but he could also just build the ADU. That is the reason new houses usually don't come with pools, they don't add as much value as they cost to build. If the parking is a requirement to build the ADU then sure it is worth it, but the ADU is the driver of value not the garage.

I think he should get estimates for the combined garage/ADU and the stand alone ADU. If the difference between building the ADU alone and the ADU/garage combo is negligible, then why shouldn't he have his garage. Even when he moves on and rents the property out by unit, he can either rent the garage out on its own OR appeal to another group of renters who are specifically looking for rental with garage space.

Exactly. I just want to know how a 21 year old saves 200k? They should bottle that and sell it. :-D

@Account Closed that would be the value of adding an ADU not adding a garage.

Isn't it both? If the numbers work out to build this instead of just the garage, he gets the "nice to have" factor of the garage while adding real value in the living space above.

I'd look slightly further afield.  Joshua Tree, maybe.  Pioneertown?  Lucerne Valley?  Spring Valley Lake on the backside? Pinon Hills up against the mountains?   Idywilde?  Julian?  The old areas of La Quinta?  

I wouldn't touch Lucerne Valley if someone *paid* me to take a property. Nothing there to entice people to a STR and the population is marginal for reliable LTR tenants. I have a friend who inherited a couple of properties in Lucerne Valley so I have this info from the horse's mouth. lol

@Rachel S. i agree with you. I think a good property should be able to serve as short & long term rentals in needed. if it caters heavily on one side, it eventually will collapse on its own. RE is a gamble but it doens't have to be if the numbers are right. We all just need to be patient & buy at the right price. Just like stocks, buy when it dips. 

 I think there are some areas that make great LTR but have little potential to be STR. I would have no problem investing in those, if the numbers work out. I think a STR investment should always have the potential to turn into a LTR though, for the reasons I stated above.