I live in Japan, but I own two investment properties in Caldwell that I bought in 2014/2015. I bought them for $120,000 and rent them out for $1200/1300 a month. They have since appreciated to about $170,000, but the rent has remained unchanged. These are all MLS deals by the way.
I have been investing out of state, but I am just wondering if anyone is still getting yield in this area. I would love to purchase more in the area since my mom lives there, but I'm having trouble finding deals without boots on the ground.
Daniel- if you need help let me know. We invest and live in Idaho. We do a lot of work in Ohio too. The returns are way better there. I have a house for sale right now for instance for sale for $45k that rents for $500. Another one for $65k that rents for $800. The real estate is inexpensive there compared to Idaho and other markets. We even have a fully remodeled home in a nice working neighborhood for $96k that will bring $1000/month.
Idaho is a great sellers market but tough to find deals. If your serious about building your portfolio let me know.
hi @Daniel Mills - Be happy you bought when you did! I don't see those types of returns coming back anytime in the short term term. That said, if you are truly long term, I still think it is worth exploring. The right tenant will pay your mortgage off. I have people in my Realtor database that started looking here in Boise back in 2014, and wanted to wait for the pricing to come down first. They are still waiting. Best to you!
hi @Jonna Weber - Yes, I was really lucky. Even then, the properties were listed around $135,000, but I put in lower offers and they were accepted. Since then, I have been investing in Tennessee and Alabama, but if something comes up in Boise I would be all over it. I am definitely long-term Jonna. Because I am a taxpayer in Japan, I can't do 1031 tax-free exchanges (I have to pay the capital gains tax here and depreciation recapture). I plan to just hold forever. What types of properties would you suggest for this long-term plan (where and in what price range)?
Thanks @Tony Napier . As I mentioned above, I've also gone out of state, just wondering if anyone is still making it happen in the area. Ohio seems like a great market, which cities are you in?
We are working in Englewood/Dayton Area. A little in Springfield too. It’s a crazy tight market right now in Boise. This last spring was insane for home values. Lots of new construction to help keep up.
@Daniel Mills I do like properties within a 5 mile radius of downtown in most directions. Price range will be quite a bit higher than Caldwell...but desirability is high close to downtown. Also - I like anywhere along the Eagle Road or 10 Mile corridor right now for rentals. Lots of growth and new commercial/retail coming to all these areas.
@Jonna Weber - Thanks. I really wish I had bought a house in my mom's sub-division in Meridian a year or so ago. It was a new construction in the Lochsa Falls subdivision. She bought it for $190,000 and now, it seems they are selling for over $300,000. At the time I didn't have enough cash flow from my portfolio to consider something so speculative, but now I might consider something like this. I would have had to put more down to make sure I wasn't bleeding money every month though.
Cashflow in Canyon county is way better than Ada county as you know. Depending on the level of renovations you are comfortable with I maybe able to help you out. I have been coming across properties lately that have not needed much to make rent ready.