Househack in Merced, Ca

7 Replies

I recently moved to Merced for work and am looking to house hack instead of rent. However, it seems like there are very few houses on the market, at least in an area that I would feel safe. It seems like the market is very competitive right now, and I'm concerned that the low interest rates are encouraging people to buy, but may result in a crash the next few years. However, it seems like because of the surrounding farmland, new housing construction is limited. 

I'm placed a counter-offer on a house for 274k (20k over asking price although my realtor agrees that it was about 10k undervalued to get multiple offers). 3br/2ba built in 1993. Great condition house in a good area, but not great. It's appreciated a lot the past few years, and I'm wondering how much more it will appreciate. Monthly cost (including budget for future repairs) is $1500.  Already have a coworker interested in living with me for $650. Assuming I can get another tenant for the same price, does it make sense to go ahead even with concern about limited appreciation? Currently, my rent is $900 for an apartment. I don't plan on living in Merced for more than 5 years, but am open to renting the property if it hasn't appreciated. 

The market is super competitive right now. Since COVID, there has been a decrease of 39% in inventory from a year ago in Merced. 

That is a huge difference considering it seems like there are still the same amount of buyers in the market. 

I manage properties in Merced. We have been lucky with the quality of tenants that we have placed in our properties in that they are all still paying rent but I know a lot of self-managing owners and management companies that have 15-25% of their tenants not paying rent. 

Personally, I think that when evictions are allowed to happen in Late February (estimated; subject to change) I think that we will see a lot of inventory back on the market once the landlords evict their tenants.  

When you have more houses available than buyers wanting to buy that is when it becomes a buyer's market.  It is difficult to say how much the market adjusts but I think the inventory comes back which would be good for buyers. 

Feel free to reach out if you have any other questions about Merced. I know the area very well


Originally posted by @Kyle Kinsley :

The market is super competitive right now. Since COVID, there has been a decrease of 39% in inventory from a year ago in Merced. 

That is a huge difference considering it seems like there are still the same amount of buyers in the market. 

I manage properties in Merced. We have been lucky with the quality of tenants that we have placed in our properties in that they are all still paying rent but I know a lot of self-managing owners and management companies that have 15-25% of their tenants not paying rent. 

Personally, I think that when evictions are allowed to happen in Late February (estimated; subject to change) I think that we will see a lot of inventory back on the market once the landlords evict their tenants.  

When you have more houses available than buyers wanting to buy that is when it becomes a buyer's market.  It is difficult to say how much the market adjusts but I think the inventory comes back which would be good for buyers. 

Feel free to reach out if you have any other questions about Merced. I know the area very well

 Hi Kyle

Do you also manage student rentals in the area. Can you please shed some light on the opportunities related to Student Rentals from the growth of UC Merced.

Thanks

Dhana

Originally posted by @Dhanasekaran Ranganathan :

Originally posted by @Kyle Kinsley:

The market is super competitive right now. Since COVID, there has been a decrease of 39% in inventory from a year ago in Merced. 

That is a huge difference considering it seems like there are still the same amount of buyers in the market. 

I manage properties in Merced. We have been lucky with the quality of tenants that we have placed in our properties in that they are all still paying rent but I know a lot of self-managing owners and management companies that have 15-25% of their tenants not paying rent. 

Personally, I think that when evictions are allowed to happen in Late February (estimated; subject to change) I think that we will see a lot of inventory back on the market once the landlords evict their tenants.  

When you have more houses available than buyers wanting to buy that is when it becomes a buyer's market.  It is difficult to say how much the market adjusts but I think the inventory comes back which would be good for buyers. 

Feel free to reach out if you have any other questions about Merced. I know the area very well

 Hi Kyle

Do you also manage student rentals in the area. Can you please shed some light on the opportunities related to Student Rentals from the growth of UC Merced.

Thanks

Dhana

 I don't have much info on that. Obviously the student population is growing in Merced but I never really hear of any "student off-campus" housing. 

For the most part students that are incoming freshmen or have came from out the area to go to a UC usually live on campus. After a couple of years they usually end up living with roommates and they find an available rental and all get on the lease. 

I think it's rare to have students living off campus with people they don't know. I think there might be a market for it but I don't think it's a big part of the UC Merced housing.

I'm not sure if this was what you were asking for or not. Feel free to message me if you'd like

@Catie Mong congrats! As long as it is above bear creek to the right of M street you are good. if you have not closed escrow yet check out above yosemite to the left of R street, great area. 

Merced has a lot of growth on the way for the next 10 years with the UC. I think the new updated indoor/outdoor mall should be complete this year( big improvement from renders of how it used to look like it was stuck in the 80's). I just wished Merced had a better option of restaurants, even when new ones opened they were never that good. 

I just purchased a house here in Merced with a mother in law that i will be house hacking. I've seen rents go up quite a bit in the past few months and it took me about 2-3 days to find a good quality tenant. I also has a lot of students apply that would be living with roommates and that also seemed like a good option if rented by the room. I hope everything is going well with your house hack!