All Forum Posts by: Karen Margrave

If you do a search of the forums, this question has been asked a zillion times, so you can find various answers. Whatever you end up doing, make sure everything is in writing, know who is going to put in specific amounts of money, who will do what, what happens if things go over budget, how any profits are split, etc. Once completed, what happens, are you hold for LTR, selling? If it doesn't sell, what then? Have an attorney draw it up so there's no stone left unturned. Friendships fall by the wayside on bad deals. Good luck. 

@Nate Slappey III I was just snooping around "classifieds" tonight! I see you guys are getting things laid out a little differently. I know it's a huge undertaking when it covers such a large area. You're doing a great job! 

Try to find some builders that are active in the area and talk to them. Materials costs are so high right now, and labor, that it's not even feasible to build new construction in CA unless you're a big builder. I'm sure your area is much lower. Good luck. 

That's a huge deal to be working on and not knowing what you're doing. Your best bet is to find someone that understands deals of that magnitude, and knows the hospitality industry. 

@Diana Costta if your PM says you need to decrease the price, you probably do. If nobody is renting it, there's something you aren't seeing. Is it in identical condition as the others in the area? Is it in the same neighborhood? Something is going on if there's others in the same neighborhood, with same finishes and condition, space, number of bedrooms, parking, yard, etc. are renting and yours isn't. What is it? 

@Kelvin Branson In regard to renting room space, you'll be increasing the management aspect considerably. What is the demand for shared room space? Where would you find tenants? It's a can of worms, unless there's something that all the rents have in common and that can still be a headache (students, medical professionals, etc.) I rented bed space to students at a local ministry school in Redding, CA, and it worked out ok. However; 2 of them decided to move out, and I couldn't get new tenants unless I waited for the next semester. My sister has a sober living house and has it set up so that if someone backslides and starts using she can immediately kick them out with no notice needed. The point is, you have to understand what the demand is, look at all the issues that you may be dealing with, get advice from a real estate attorney, look at insurance and liability, and make a decision based on all the facts. If there's no reason you HAVE to do it, I wouldn't. 

@Bonnie Low What you've described is actually considered a Jr. ADU, whereby it's part of the main house if I'm reading it correctly. In addition, on a Jr ADU it's not required to have a dedicated bathroom, nor separate meters therefore; if you're doing it for a relative, etc. and they can use a bathroom in the main house, it's a huge savings.

ADUs are actually stand alone units. Right now the cost of materials makes it so impractical to do stand alone ADU, but hopefully they'll come within range soon. It would be a big help to the housing crisis we have in CA.

Hello everyone. I haven't forgotten about Meetups, etc. I've just been swamped, showing properties, with everyone trying to tie stuff down before rates go up again. At the same time, there's so many people on the fence, thinking prices are going to crash. It's a crazy time for sure! I am going to schedule another meetup, beginning in September. however the last one only had a few people, and they only work if we have good participation. We talked about opening the meetups to the general public, and not just BP members to get more people. let me know what topics you'd like to get more expertise on, and I'll line up some people to come so we can pick their brains. (Insurance, Loans, Zoning, STR, ADU's, ?? )

keywords: Redding, northern California, STR, LTR, investment property, Shasta, Lassen, Lake Shasta, Anderson, Cottonwood,

It's definitely one of those issues that is very specific, and would need to be worked out with Planning. I would suggest one or both of you go talk to a Civil Engineer and ask if they can see a way to accomplish what you are trying to do. They will know the code, etc., and have relationships at the City. It will probably save you a lot of time and headaches to go that route. Butler Engineering is good. Are you actually building the ADU or contracting out? On Meetups, I wasn't getting enough people consistently to do it. I'm thinking of opening it up to other investors, and not just BP. I will be posting in the future. I am waiting to see where this market is headed, as I know a lot of people are sitting on the fence right now.

@Jaedon Carlisle Welcome! You're right there's few units on the market, but they do come up and if you're ready to commit, you can find something. However; none of them are going to be "deals". We have an extremely competitive market, huge demand and low inventory. Add to that top dollar is being paid for rentals. I am considering starting a new REI Meetup for Redding members of BP and the public at large. Unfortunately, we just don't have enough BP members right now that can make meetups. I'm sure it's more due to the market conditions. I'm a Realtor and General Contractor with years of experience in Redding, buying, selling and developing properties; and will be happy to answer any questions you have about the market, the area, types of properties, etc. Set your keyword alerts for Redding, Redding Investors, etc.