Rental Property Investor · Boise, ID · Member since 2021 · 5 posts · 3 votes
Hey everyone this is my first post and I'm super excited to be a part of the BiggerPockets community! I've been devouring BiggerPockets podcasts, books, and courses for about a half year now and am at the point where I realize I need to start applying what I'm learning or I'm going to explode.
I'm particularly interested in the Boise market because as I'm planning on moving there soon + house hack with a 3-12plex, but I have this feeling in my gut that everything there is extremely overvalued. Prop values are about 10x local household income.
So on one hand, I'm eager to do my first deal, but on the other hand my gut is saying that market has topped out and is about to head down the roller coaster. Any tips or suggestions on patience vs taking action?
@Ryan Garant, Chris made a lot of good points about interest rates and I would add just one more thing to that... No one knows really when a market will shift or when you are buying at the top of a market or not, but I work with a ton of investors and this market is still hot, they are still buying like crazy. All of the market reports that I read for the Boise area is that we are projected to have 10-15% price appreciation this year and I think that is a conservative estimate.
Also, that's awesome that you are in a position to be able to house hack, definitely do it if you can. You'll be fine! Best of luck!
@Ryan Garant Predicting the market is the hardest part! It's a tough call and one only you can make. If your gut says wait, I would wait. At the same time, it could be a loss in profit by waiting longer if the market maintains. If you could find an off-market deal from perhaps a wholesaler or yourself and utilize the 70% (or whatever percent your market demands) rule, you could still do well in a downturn.
@Ryan Garant I fell you on having second thoughts it is wild to see the prices and think you will make money. However look at the payments for locking in that rate. Secondly doing a house hack is the best way to get started. While finding a deal that works without the house hack would be great, you also have an advantage in that you will either be paying rent to someone else or to your self.
I would focus more on limiting your expenses and exposure. With a house hack and low rates while it may not be a home run what will happen if you lock in a year renting at 2k a month and interest rates are at 4% next year unless your income has gone up significantly or your debt down what you can afford has gone down. If this is your first one it might be better to keep it at a 4plex unless you need to go with a commercial loan.
Shoot me a DM if you want some more info on local market.
I would say go for Investor that own portfilio and want to cashout of the marketing because the properties are to far away or they want to enjoy their life and move on.Go to propstream and look for 5 or more units and investor who may want to sel below markert.I have an investor that came across a super hot deal the investor is at the prime of his life and selling a 9 Million dollars portfilio for 6 Million so you just have to try many different things and I PROMISE ONE OF THEM WILL WORK FOR YOU.
@Ryan Garant, Chris made a lot of good points about interest rates and I would add just one more thing to that... No one knows really when a market will shift or when you are buying at the top of a market or not, but I work with a ton of investors and this market is still hot, they are still buying like crazy. All of the market reports that I read for the Boise area is that we are projected to have 10-15% price appreciation this year and I think that is a conservative estimate.
Also, that's awesome that you are in a position to be able to house hack, definitely do it if you can. You'll be fine! Best of luck!