All Forum Posts by: Tom Kastorff

Hey Zach, you have posted MTR units to FB Marketplace and received actual bookings from it? Not just 100 spam and "is this available" hits? Do you utilize that across multiple markets or just one? (curious if it's a specific/local thing or seeing that success across multiple geo's)

Thx,

I've had a similar dream for the last ~7 or so years, specifically Guerneville near the main village. Have swung and missed on half a dozen SFH's in the last couple years, the area really took off during COVID and I saw properties going $100k over list. I also considered the land idea and sticking a BOXABL or shipping containers on a plot and building that way.

Couple concerns.

That area, especially near the river, is pretty remote. Building from scratch will likely cost $$$$$ and then add ~20% for overage for materials, shipping, delays, permits, who knows what. Running power and water. It's CA, contractors are never on time or budget, and it is a hard to reach area. Nothing related to building there, will be cheap, IMHO. Could be wrong. But you're going to need to find contractors that probably have to drive out there every day and back, and there's a cost for that too. Hence the modular building idea to cut the time and cost down.

This area, like many, underwent a big STR license ordinance during COVID. Pretty sure there is still a moratorium, or the max limit of licenses has been hit. I stopped my buying search once that happened, as it would be tough to make a rental work in the area as an LTR or MTR at current prices, unless you really found a steal in a prime location. So your note about keeping it and using as an Airbnb is a risky option, depending on what happens with licenses in the future.

The only way to know what a hyper-local cost to build would be, is to interview local builders and GC's who service the area. None of us can answer that for you - could be $300 per SQFT or could be double. I would also call a few agents to get a feel for building, contractors, permits, timelines, etc. You might be sitting on land for a year waiting for permits, soil reports, inspections, etc. etc. before being cleared to build. I would also ask agents if they think a 400-600 sqft unit is worth building for the effort, or if you need at least 1000sqft etc. To go through all the hassle of hiring, permits, trucking stuff out there, for a 600sqft unit seems a bit foolish. I'm honestly not sure this is the right area for a new build / flip idea, because it will be super expensive, and unsure what the profit margin would be. It would need to be a spectacular property most likely, not a tiny home.

All I got. GL! Keeping my Guerneville dream alive, but on the backburner...

 Would love to hear what this is and the revenue model etc. Can you PM me your contact info? I'm local as well. 

David if you're still interested in RE in LV, here is one local REI group that has meetups monthly: https://www.facebook.com/group...

I will also say that flipping in Vegas is extremely popular and thus extremely competitive. You have several mega-flippers doing 100+ props regularly. You can find many of them on FB or Youtube even, several run TV commercials. Not saying it can't be done as a new flipper, but finding off-market / wholesale deals could be tough without a lot of connections. You would definitely need to get out here and get boots on the ground and build relationships. 

Heyo! I have found plenty of markets to invest in. Just none where I can win an offer that isn't $50-100k over ask :) 

Gave up on PS after losing a couple props and digging through all the permit concerns. Gave up on BB for similar reasons. Have looked all over, from SD (have lost out on ~5 properties, from $50k over to $225k over ask), to gulf shores (similar insane overpricing), to wine country (a couple I tracked went $100-200k over ask thanks to SF tech money) and beyond. 

I am still looking but it is pretty difficult to find a deal on the MLS at this point, that a million of us aren't all looking for at the same time. Just too much money floating around out there and still not enough inventory to help soften the blows of 18 offers and $100k over ask. In the meantime I am investing in my 3rd fund to diversify my RE holdings, more passive and more short term upside in returns. Still keeping powder dry in case I find an STR deal, but spending less time looking, aside from the standard daily alerts I have set. Curious what everyone else is doing out there.

I've been looking pretty hard at Maui condos the last few weeks for an STR. Narrowed to the northern area around Lahaina / Napili / Ka'anapali. I've found the HOA fees to be just insane [$700 low end up to $1500+ for a 2br] and for that reason it is hard to make many of these inflated sell prices pencil out to a profitable STR unless you really have prime location + pimped out interior + 90th+ percentile ADR pricing and self manage [impossible to profit with 20-30% PM fees]. Even then the numbers are just too slim to let me pull the trigger on one or two units I would really like to chase. I will wait some of these out and hope prices drop and try to swoop later. Until then I'll just use Marriott points for my visits ...

Have never been to the other islands, so no experiences there. 

JJ, this is an excellent write up. Well said, well written. Spot on. Paralysis analysis gets us all. Money is hard to part with at times. Just sold my SFH in SD (bay park) and moved to Vegas. Now trying to buy an STR in a number of places, just so competitive and going so far over ask. You really have to hunt for deals and run your numbers hard. One agent I spoke to yesterday up in wine country flat out said "everything up here goes 10-15% over ask" so now do I even make an offer? At ask? Do I just go 10% over? Your mind tells you to give up and wait (as others have written above, to wait out the market) - but then waiting grows no wealth. Cash on the sidelines earns peanuts. It's a balance, just have to be patient and strike when the opportunity is in hand.

Recently moved to NW Summerlin, would love to grab a pizza and talk RE sometime Bill. Let me know. 

Pretty sure my STR in CA is with American Modern. Affordable 1m coverage specifically for vacation props. look it up or call a top broker in town

I've never heard of one. Imagine it would be tough to do with so much property owned by out of town investors and 2nd homeowners, most of which have money and are less likely to fall prey to hungry wholesaler spiels. That being said if there was one, they could call me anytime with a deal!