All Forum Posts by: Karen Margrave

The problem is you don't have any comps to use, and on the only one you did use, how does it actually stack up against yours as far as age, location, square footage, size of lot, quality of construction, finishes used, etc. You always want to be comparing apples to apples. Have you talked to an agent to see if they can find you more comps?

Honestly I don't know where the 3X rent number came into play, but it is a huge problem for a lot of people in high rent areas of the country. Rent and mortgage payments are often taking up 46% of income it's said. Add to that the rising cost of utilities, food, etc. and people are stretched beyond reason. 

Here in my area where homes are in high demand, I've seen seniors sell their homes, use their profits wanting to buy a MFD home, pay cash for it, and use their SS and other income for paying space rent, utilities, etc. However; the parks are requiring they make 3x what the TOTAL OF ALL BILLS are. Add to that the credit scores required, when often elderly people aren't using credit, therefore; have no score or low scores.  It's insane! 

Currently there is no protected class for people based on their income levels, or credit scores, but I can forsee a day when someone brings suit to try to have consistency applied, and formulas, based on an areas rental amounts.  

Ever heard the saying " A bird in the hand is worth 2 in the bush". You have a good investment right now. The times are challenging. Why take the risk? I personally would wait until the markets, and the world settles down. SVB fallout hasn't even been felt yet. These are unstable times.  I'd sit tight, and be thankful for good tenants, but you need to do what feels right to you.  

It appears that is a home inspection. As you know, home inspectors in CA are not licensed contractors, therefore; they make notes of everything, and tell you to consult with licensed contractors/trades, etc. to look into problem issues. The critical things to have inspected are electrical, plumbing, HVAC, roof, and have a pest inspection. Pest inspections tell a lot, that's where you'll find out about dry rot, pests, foundations, subflooring that is failing, etc. Try to find a company licensed in multiple trades and ask what they charge for inspections. 

Health and safety issues, such as GFI, pool issues, etc. are important. Definitely need to find out what is going on with electrical. 

Be sure to use LICENSED contractors. Verify their license on the State of CA Contractors Licensing Board website. Check references, don't go off what you see on websites, or people tell you about themselves. Get actual bids on repair costs IN WRITING

I live in Redding, CA. It's in the actual northern CA, not the bay area where those location challenged claim it is. Our area has such a big demand for affordable housing, that people are renting furnished (sometimes unfurnished) rooms out for $450-1000+ sometimes. These are such bizarre times right now. There are some new homes being built, but in CA it's so expensive to get through the entitlement process, permits, then add to that including solar and sprinklers, and affordable is out of the question. We have older manufactured homes on a parcel of land selling for $200+ . Yes there are a few developers doing subsidized housing projects, but it's strange. 

Where you live what is it like? 

Though I've slacked off on posting, I can tell you the secret to gaining value from Biggerpockets is adding value! Participate in the forums, post consistently. Give detailed advice about things you KNOW. I came on BP in 2009, wanting to learn about the market in southern CA where we had just moved, and trying to determine where there was a niche for us on business. I found so many good people willing to share what they knew. I realized there were a lot of people I could share what I knew with, on real estate, construction,, new spec building, etc. I loved it and was addicted. Soon Joshua and Brandon asked if I'd moderate. Of course I was thrilled, being the first female moderator. I've been here since. Love this group of people. I started a meetup in southern CA, then another in Bend, OR. Both are still going, run by other BP members! The generosity, and breadth of knowledge on this site is like nothing else anywhere! Be helpful, don't worry about what you'll get out of it. 

REDDING, CA has a very high demand for rental properties, and multi unit properties are extremely rare on the market. It will go fast. Call or text me if you're interested. (530) 782-1800. 

The demand in Redding is driven by the massive wildfires in northern CA the past few years, displacing thousands. Add to that, we are one of the most beautiful areas for recreation in CA, with huge lakes, rivers, mountains, caverns, and hundreds of miles of trail system, plus 2 volcanoes, and waterfalls within a short drive, meaning lots of investors in STR here.

As if that weren't enough, Bethel School of Supernatural Ministry has a few thousand students that come from around the world, and has no dorms, meaning investors buy up homes and rent bed space for high dollar amounts! 

Redding, Shasta, Triplex, Income, MFR,

When you're in a hole, stop digging. I have zero experience on a house that old, and would never attempt to do one, because there's always things that you don't see until you start digging in. Windows should have been one of the first things done. Forget putting in hardwood floors, unless you mean refinishing them. Post some pics if you can to allow people to see the condition of the house, and other remodelers may be able to give you more detailed insight. 

Many areas have grants available to help with energy efficiency for windows, insulation, upgrading heating and air conditioning units, you might check on that. $1000 a window? You have to be able to get cheaper windows. How many bids did you get? 

If everything were done, what would the value of the house be? Please post pics.