All Forum Posts by: Joe Bertolino

I have an insurance client that owns three of these.   I would keep it simple.   Make it nice and upscale but I would not want to get involved with too many additional amenities.  Hair Dressers, estheticians, etc are very price sensitive in these situations.  Most that rent those types of places rather than a chair at a large high-traffic salon are there because they don't want to work 24/7.   

 Out of those three Cameron Park would be my choice.   I grew up in Rocklin but prefer the Highway 50 side of Sacramento.  We have basically everything you get in Roseville/Rocklin with 60% less traffic and congestion.  Roseville is not a bad choice.  

Carmichael is in an unincorporated part of Sacramento county so it’s very inconsistent.  There are immaculate neighborhoods that are a block or two from large homeless camps.  I lived there for 8 years but it would not be my choice. 

 That sounds a little high.  I have 3 new builds in North Natomas going for $2500.  3/2 1750 sq feet.  
I think you are shooting too high.  

When I have had a problem with properties like that I ask one of my contractors or other contacts if they have anyone who would want to stay there temporarily between tenants.   Usually a young guy with a blow up mattress and Roku TV that's happy to be out of his parent's house for a month.  I paid them $25 a day.  

Heritage Credit Union in Folsom. Obviously, the market is changing rapidly but Heritage normally has the best HELOC terms in our area.

I am not a doom and gloomer but I think you need to decide how long you want to wait.  I think you deal with the market as it is or pull it and wait until early spring.  I think staying on the market from November - January is not going to be ideal for your pricing integrity.

 Fewer projects are penciling out so you are seeing fewer projects moving forward.    Construction takes longer and is more expensive and money is more expensive... while there is fear sales prices will drop.  You won't see a bunch of new projects for awhile which will just add to the demand when rates are back down.  The slowing in supply has very little to do with how much demand is truly there.  

 I am not sure there are a ton of listings.  Maybe in certain areas.  Last In my Sacramento metro area of 2M people there were 183 new listings. 

 Obviously If rates stick at 9% for an extended period of time the market activity will grind to a halt. Will it drop 20%+ year over year nationwide.  I don’t think so.  I don’t see how it can.  There is not enough inventory.   3.7 months in my area with very little standing inventory from builders.  The BIA hot list has 17 homes.  I predict people just won’t do much.  They will stay put until numbers start to pencil out again.  Considering most homes have a ton of equity and rentals are extremely expensive,  unlike 15 years ago,  people won’t be walking away from their homes in mass.  

 I don’t know if he actually read the story or if he thrives on click bait.  

I lost my desire to debate him when he “couldn’t remember” the subdivisions in Dallas he was claiming had hundreds (if not thousands) of completed homes sitting in standing inventory.