All Forum Posts by: Account Closed

Who do you use and recommend? I need some help planning for and minimizing taxes. Personal and Business. Located in CA.

@Willi W. Thanks!! It was great working with you and Min.

For all you betting on Oak Park.... this is interesting and GREAT news! 

lMini start up campus comes to Oak Park, Sacramento, California

@Syed-Shawn Azam Wow what a great post!! Thank you for the mention.

I think you have to mention that although you bought the property at a great price, you have done all of the right things to make it a success. You're very smart, intuitive and exercise common sense which is important when investing. And you're willing to take on risk, which was also a key factor this success story! No risk no reward!

BTW I really like the stone veneer going up on the retaining wall it looks GREAT.

@Joey Chan I was merely stating what people can do to increase their odds of securing a distressed property on the listed market. Investing, in general, is risky and it's up to each person's individual risk tolerance level what they're willing to do to potentially make some money on a property. 

I see offers everyday with zero contingencies and those are typically the ones that get accepted  (distressed properties... retail offers are different). 

It would be hard to secure a tenant with that large of a rental gap. While rental inventory is low, I"m not sure a tenant will select a property that is almost $700 more per month than one down the street even if it is a lot nicer. 

I manage a short term rental and when I initially got into the business I was green and didn't consider how much time it would take to do. It takes a lot of time, and quite frankly isn't worth the extra money that you earn from it. At $2650, You will likely break even or earn a few hundred extra a month (depending on the season) for the area, and I'm not sure it would be worth the time spent on it. There are a lot of things that come up with short term rentals and it would be difficult to manage from afar if you've never done it before. If you hire someone locally to manage it you would be bleeding money.

It may be worth renting it short term if you really want to keep the house, and see true value in it long term. Once rent rates increase to that magical number you could start renting it by the year and get out of the short term market.

@Chris Mason Amazon and Tesla moved manufacturing there.

Yardi Matrix 2017 rent forecast (growth YoY)

1. Sacramento 10%

2. Seattle 8.6%

3. Reno 8.0%

4. Phoenix 6.5%

5. Tacoma 8.0% 

NATIONAL 3.9%

Hey @Andrew K. and welcome! 

I would second @Wes Blackwell on this one. If you're objective is to earn money in the short term then implementing a short term strategy is the way to go. Rentals are a long term strategy whereby you put money into them today and then see rewards over the next 30 years. While you can gain equity on the project in the short term, it's unlikely to gain $300k in 1 year (depending on where you buy of course). 

Flipping properties is how I built wealth personally over a shorter period of time. The flip market in Sacramento is over-saturated and competitive. Being a newbie it will likely be difficult to get into now but not impossible. Properties that are listed, and have flip potential receive multiple offers on them within a matter of days by cash buyers that offer no contingencies. As a newbie I'm not sure I would recommend you submit offers with no contingencies but it's up to your comfort and risk tolerance.

Saying that, from start to finish, a flip project (depending on the scope of work and area it's located in) typically takes 6 months to cash out. Let's say you earn $15k on each flip you do (which is realistic for something under $250k) then you would need to do 20 flips per year and have 10 going at once to gross $300k. 

From experience, you would likely be managing contractors full time if you had 10 flips going at once. Unless you hire a project manager to manage contractors for you - which would take money out of that $300k profit.. Just some food for thought to get you going. 

Feel free to contact me if you'd like to take a look at the Sacramento market.

I'd say it's C neighborhood. It's ok.. I wouldn't be scared to drive/walk around it but it's not the best area either. It's all mediocre in terms of appreciation potential. But from a cash flow only perspective - to buy and hold you can get good, solid, stable family renters there.