All Forum Posts by: Ryan Wallace

The other two responses are spot on. HOA fees in many of the downtown buildings really limit the potential for a solid ROI. Vacancy in downtown from what I have heard is also slightly higher than the surrounding areas due to all of the new high end apartment complexes that are going in downtown Boise. Make sure the numbers pencil and you should be fine.

The other thing to consider is the Condo association. Make sure you thoroughly read the CC&R's because many also have restrictions on rental (% of owners that can rent, length of term, approval prior to,no short term, etc.). Condos have very strict rules regarding %owner vs % investment and can loose their condo cert if they don't abide. This makes these units ineligible for conventional purchase which really effects the resale for owners.

I don't know what kind of numbers you are looking for, but I have a Duplex just north of downtown with a potential note assignment at 5% interest. PM if you want some more details.  

 Idaho is a great market, but limited inventory and increasing prices have left cash flow next to non-existent for most first-time investors or minimum down payment investors. Although it still has a very healthy rental demand, a good pool of high-quality tenants, landlord-friendly laws, and reasonable hazard insurance/taxes. 

I wouldn’t wait 5 years to make your hobby farm dreams happen. You can make more money, but you can’t make more time.

Consider finding an area where you hope to start your hobby farm. Then jump on landglide or onx and find out who owns the property. idaho, especially ada and canyon county has some funny development laws but a lot split would be possible. Reach out to the owners directly and convey that you want to start a hobby farm and are looking for roughly x acres, would they consider selling that portion of property. Most of the older folks in the area who hold the land are approached constantly by developers so a small family looking to do what they did 30 years ago might tug at their heart strings. You’ll cover the split fees and do the leg work for them.  It’s labor intensive but really how the best properties are found.

Meanwhile keep looking for deals in your other target markets. It doesn’t need to be an exclusive one or the other. There is always a way to find the money when an amazing deal comes up, so don’t make the mistake and just pigeon whole into one path. 

hi @Steven Whipple! welcome to bp. I live, work, and invest in the boise area! Great town with a variety of investment opportunities.

We have definitely seen this in Boise. With thousands of multifamily units still on the books to come online this year and next we may see some additional declines as they compete. I have definitely been underwriting my deals with a cautious figure for rent and advising clients to do the same. 

 I would personally spend the extra couple of dollars to go from laminate to granite. Typically you can go to a local granite yard and find some overstock or remnants that you can make work. The fabrication cost is more expensive but I can typically be in the range of 20-25% more than laminate and get a product that is significantly superior in quality and actually adds value. 

Your description of the bathroom tile wall is slightly confusing. If the shower enclosure is in good shape and the remaining tile is just cosmetic pull it off, repair any drywall damage, and cover it with a shiplap or an accent wall panel (just make sure you use moisture-resistant materials). 

Regarding the swamp cooler, take a look around and see what is common at your price point. Obviously, central air is a huge value add, but if everything else is swamp cooler, don't worry too much about it. It also is the largest expense listed here by a significant margin so make sure you are getting an ROI on it.

Hi @Hector Valadez, welcome to the forum, and congrats on deciding to get out of California! There are so many benefits to moving some or all of your portfolio outside of the coastal states. I work with numerous investors from California moving funds to Idaho. We are actually just finishing up a triplex from a client out of Santa Clarita, right down the street from you. 

Every market is slightly different and you really need to sit down and determine what your investment goals are. Are you looking for appreciation, cash flow, forced appreciation, up-and-coming markets, etc. Typically just like life, you can't have it all and each person is slightly different. I like to monitor top 10 lists and compare the in-migration numbers. Often times these lists are generated right at the start of the boom and you can get in before they become more expensive or limited in availability (sometimes they are late as well, so be careful and use those metrics). Then look at jobs and wages. We want to see some larger company names in the area or firms looking at moving there. Good jobs are the backbone of a stable rental economy. 

These are just some tools I use. I also have to put a shameless plug for the Gem State (Idaho). If you want some more info, shoot me a DM and I will provide you with a breakdown. 

Best of luck on your new adventure! 

Hi @Jen Menchaca ! Welcome to the community. I would check out Boise Real Estate Investor Network on Facebook. Jonna does a great job putting together networking and education events and the community support is very local and super helpful! There are quite a few of us local Boise Folk on here so feel free to reach out and ask questions anytime! Best of luck! 

 Investing in yourself is always the priority! 

However, just a small piece of advice regarding real estate investing that someone told me at a young age... It doesn't get any easier. Don't get in the habit of putting it off. Always have it running in the background. Align those strategic partners now (parents in your case) and keep talking about real estate to friends, family, classmates, etc. Build that network and expand your sphere. If you don't pursue it now, once you are done with college you will have the next hectic phase of your life, starting your career, then starting your family, then funding your retirement...etc. Before you know it, you will have missed 20-30 plus years of appreciation, rent growth, equity growth, and cash flow. 

 Hi Michael, 

Depending on the location of the property in Boise, it sounds like you have a gem. I would focus on increasing the rents of the first unit to market value as soon as possible. There is a huge benefit to having good tenants, but not at the cost of 35% of market rents. You can find a balance of being below market rent, but not losing a large portion of money and subsequent value in the property. I work and invest primarily in the Treasure Valley and I will tell you finding deals that pencil is difficult. Trading one good cash-flowing property for 2 properties that will barely break even in the hopes that appreciation will carry you doesn't really sound like a plan. I would instead focus on increasing the cash flow of the property you have and then towards the latter part of this year refinancing down to an 80% LTV and pull some cash out. Rates should be starting to settle/ decline by then. With this cash, I would start hunting for another property. Winter can be a lucrative time to find deals in Boise, especially if they sat through the fall. People want to move them before year-end, sometimes even at a substantial discount. With this refinance strategy, you can avoid the costs of selling, control your expected cashflow, and still expand your portfolio.

You still need to focus on improving the performance of that property first! Best of Luck!