All Forum Posts by: Bradley Buxton

@Karan Anand

It would depend on the what you can rent the house for in San Jose when you are traveling abroad.  You would not want to lose money and pay someone to live at your house make sure to factor in all the expenses.  Buying in a market where you can get some cash flow will be ideal.  You'll need a good property manager to manage the investment while you're out the country.  Our California investors are finding some good multi-family and single family that cash flow after expenses properties in the Reno Tahoe, NV area.  We have them setup with good property managers so that they can be as hands off as possible. Depending on when you are leaving the country investing where you live can be a great option. 

We are going to be hosting a networking event for investors in the Lake Tahoe, NV area. 

What are some of the features that made a great event?

What went on at the events you have been to that added the most value to you as an investor?  

@Chris Freeman

BP is a great resource, podcasts, and forums.  Keep in mind there are many experienced investors here and their strategy might not be the best for you starting out. Think of it like starting a new sport.  If you go out and run 26 miles you might be in some serious pain, start by running 3 miles.   Networking events are also a great way to meet people.  Also talk with and interview RE agents in your area.

@Jonathan Camacho

Every house is an investment. Buy a house you can live in as a primary that would cash flow when you move out. CA does have good appreciation. The other option is to find a house you might want to move to later out of state. We have helped some clients in Reno, NV and Incline Village find properties with VA assumable loans. It's a great way to get into a very low interest rate loan. The downside is that you have to cover the difference between the loan amount and the purchase price.

Quote from @Jordan Budke:

Quote from @Bradley Buxton:

@Jordan Budke

Reno is a great area to invest (and live).  We help investors with resources to build a team.  As @Nicholas L. wrote above you will have more challenges the farther away you go.  We have multiple clients living in CA that have given up the midwest investing because of the headaches of long distance. We have knowledge and teams in the Reno Tahoe area that are specialized in working with Investors and it's a quick flight from San Diego. The number one priority is getting your finances in order before taking on more debt. 

Thanks brother! NV is just a hop and a skip away. What are the average costs of home out there and how much is a buyer expected to put down? I’m pretty green on the finance side of the biz. I bought my primary here in SD but I know buying investment properties is entirely different 

We are underwriting the whole market and finding 5-8% cap rates in and around Reno.  Purchase prices are 200k and up with a good number around the 400-500k range.  There are major tech companies investing in the area from Apple to Tesla. Also very landlord and tax friendly. 

@Katherine Lewis

Reno's MTR are driven by the large hospital, mining jobs, Tesla, Data center construction, logistics, and it's proximity to Lake Tahoe skiing and summer recreation.  There are a lot of CA tech companies moving to the area for the business friendly environment, no income taxes, and low property tax.  20 minutes from the Reno to the east are major data center and power plant developments.  All those jobs bring peripheral business to support everything that goes with population growth. 

@Jordan Budke

Reno is a great area to invest (and live).  We help investors with resources to build a team.  As @Nicholas L. wrote above you will have more challenges the farther away you go.  We have multiple clients living in CA that have given up the midwest investing because of the headaches of long distance. We have knowledge and teams in the Reno Tahoe area that are specialized in working with Investors and it's a quick flight from San Diego. The number one priority is getting your finances in order before taking on more debt. 

@Venkat P.

How much are you losing per month and how long do you expect to see negative cash flow?  

Can you pull any equity out of your current deal?  What do you expect the appreciation to be when you exit? 

As others have mentioned there are some out of state options that will cash flow better.  In Reno Tahoe Nevada we don't see the same cash flow as the Midwest but there are some cash flow properties with 20% down on 500K. It's a much stronger appreciation market over the next 3-5 years which usually a greater pay day when you sell. Where as a place like OH might give you the short term cash flow you are looking for. 

@Katherine Lewis

True, right now Reno does not have many regulations on STR. That could be a concern for a smaller town. Most of the STRs in the area are near Lake Tahoe in Incline Village (about 90%) and I expect the county to implement more regulations in North Lake Nevada. It's also Nevada and people here don't like being told what they can and can't do.

South Lake in Douglas county, NV is very restrictive and becoming more so.  

Reno has so many options for hotels that STRs are slightly less desirable in the city limits vs Lake Tahoe where there are only 2 hotels. Some of the best cash flow and wealth building is in the MTR and appreciation. I do believe that there will likely be more restrictions in the future but I don't expect them to be as restrictive as South Lake because of the availability of workforce housing. 

@Chandler Alexander

Hi Chandler, I'm a Davis local and watch Sacramento evolve from areas you'd never want to love to million dollar homes.  There are still opportunities there but more on the out skirts. A house hack could be a good option.  I've Relocated to Tahoe and work with out of state investors finding properties in Reno.  I see many similarities of old town / midtown Sacraments with how Reno is developing now.  Be sure to do your math twice and avoid overleveraging just to get a deal.