All Forum Posts by: Karen Margrave

CA will do anything to fleece its citizens. We have the strictest regulations and standards in America. Zoning laws together with fees and red tape limit construction, except for the largest developers. There is such a huge demand for housing that few people sell, so the opportunities to buy up fixers and flip them is a pipe dream. Here in Redding rent is so expensive it should be a crime! I'm not sure how this is going to shake out, but I do hear of contractors having problems with bankers not wanting to complete funding on projects that they already have in the works, etc., and they're starting to lay off workers. What are you seeing in your areas? 

You definitely want to get the approval of the HOA beforehand. How many parking spaces are you allowed to use? Would they be sufficient for renting out rooms? What amenities are there in the complex? If there's a pool, laundry room, etc. having extra tenants puts a higher burden for property owners, and probably won't be allowed.

I'd find a different deal. However; if you do move forward be sure to make closing contingent upon the property being vacant at COE, otherwise hard pass! 

You definitely want to know the laws of your state regarding property management. Here in CA you have to be licensed. In addition, our laws are so complex and ever changing, and favor tenants over property owners. Trying to manage properties as a side hustle would be asking for a lot of problems. However if you start a company and have a licensed person (if required by the state) running it, that might be a good option, though may not be very profitable. 

@Chris Seveney As a General Contractor myself, I'd love to find note investors in my area to get deals from. Our market is so tight right now. Where would you suggest finding note investors? Also, where can I get a list of asset managers that service northern CA? Thanks for your feedback! 

The previous posters offered some good advice. You said you have a good concept, so must have already done some deals. I'd suggest you put them on the deal forums with photos so that people can see what you did, along with the numbers, etc. If people see you're doing good deals, and there's money to be made, it's easy to find money. Also, do an ad on Marketplace. 

@Sam Booth I am a Realtor in Redding. Our market has an extremely high demand. There are properties that come up that are good for rentals. Landlords are getting top dollar for rent. Prices are high. Everyone thinks the market is going to crash, and because of that I did this FB post the other day. Maybe it will help you. Also, Anderson and Cottonwood are good areas for rentals. 

EVERY DAY we talk to people asking if the market is going to crash. I do not have a crystal ball, but as an experienced agent, contractor and developer, that has weathered recessions and the crash, here's what I can tell you. 

1. Higher interest rates will eliminate buyers on the lower end of the ladder, and move others down a rung, meaning fewer buyers in the market.

2. As rates go up, fewer buyers qualify for loans, and get less home for their investment dollars

3. Markets are mostly local, and driven by local conditions. Here in Redding and Shasta County we have the perfect storm that eats up housing.

a. Wildfires decimated a large number of homes in northern CA, pushing homeowners that lost homes into the rental market. Many of those people rather than rebuilding, sold their homes to builders, and they either remained in the rentals, taking their money from insurance and buying smaller homes, traveling, etc. as their family needs didn't require the larger house they once had, etc.

b. BSSM Bethel School of Supernatural Ministry takes up a huge number of rental units in apartments, homes, etc. as they are not required by our local planners to provide housing for students. 

c. Due to the beautiful area we live in, it's a perfect location for tourists. The growth of Airbnb properties (STR Short Term Rental) has taken many of these homes off the LTR (long term rental) market.

d. Covid brought us many buyers fleeing bigger cities, buying homes and renting properties, thus adding more demand. All of these things have put a huge demand on our local market. If you're thinking of selling, prices are still at all time highs, with no guarantee future appreciation will continue. Nothing is certain. We have no idea what the future holds. Will more businesses close due to the high cost to buy goods, pay utilities, etc. and unemployment rise? We have no idea! Suggestion: Make your decisions based on what the reality is today and the foreseeable future. Gambling on the market crashing and home prices going down is just that, gambling. As interest rates go up, people can afford less. If you want to buy or sell, there may never be a better time than now!

FYI not having a profile photo on BP doesn't give a good first impression. Whether your own photo, or something that shows your local area or something other than what you have would help others take you more seriously. But still need a solid project. Good luck. 

@Zachary Hryczyk Where in Oregon are you building? We were in Sunriver OR a few years back and built a few homes, remodeled, but prices just skyrocketed and was too hard to find land. 

Also, maybe you can upload a photo to your profile. If you don't want your photo, use something that's indicative of your area, a sport or ? Just makes it more personal. 

@Rob C. I want to find out what the actual costs will be, and if it actually makes sense. Right now I'm just gathering information, there's a lot to take into consideration.