All Forum Posts by: Christine Smith

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Hello All,

I’m a SoCal native and water supply and changing environmental factors have always been a consideration. 

Last year we started looking for our next property in AZ, but recent research about drought conditions there makes me pause in considering it for a long term buy and hold. Given the increase in population and the increased demand for water that brings, it just doesn’t seem sustainable to me.

I’m curious how others navigate changing climate issues and factor them into buying decisions. 

Thanks!

Also, STR regulations in BB are changing significantly and quickly.

Less than 30-days, which is why we do 30+.

We have a rental in the Orange County area. We've had 0% vacancy since we've owned it (2016) even with multiple tenants passing through. When our long term tenant moved out December of 2020, we had trouble filling it for the first time ever. So we converted it to a long term short term rental (30 day+ on Airbnb). We're on our second guest (2-months a piece). It's a lot more work, and the income is a little more, but less consistent (there are weeks between guests at times that aren't covered, or technically they are but our income goes down to cover the spaces between guests). And the costs to furnish were more than expected, even with smart buying (used items, lots of IKEA, borrowing pieces, etc.). We're going to wait and see if we get another guest books for May. If not we'll turn it back to a standard rental, and hopefully we'll find a qualified tenant now that a lot of the chaos of the pandemic has settled. 

Thanks for asking the question. I'm in a similar spot. 

follwing

We just finished a standard refi on our 2-on-a-lot to get out of our FHA loan, and reduce our interest rate. It's finally finished (after 4-months) and we ended up getting a real low ball appraisal. We didn't challenge it just so we could complete the transaction and be finished with it. But in my estimate (knowing the neighborhood and the income of the second house on the property), we were appraised about $50k to $75k under what we could sell it for today. Our current property apparently is odd and appraisers don't know how to evaluate it fairly, because 2-on-a-lots are not common in our area.

Now, we're looking at ways to finance our next purchase and thinking of using a HELOC for the down payment - my question is: will we be able to do a new appraisal (or be required to) for the HELOC? And what are our chances of getting a better appraisal on such a unique property for our area? As it stands, with our appraisal as is, I don't think we'd qualify for a HELOC.

Would love any advice you have! Thanks! 

Yes, follow your gut. From what I'm reading though they sound like potential great tenants. Some of our best have been those with poor credit. So I wouldn't let a lower score be your only determining factor to not rent to them. I would charge a higher deposit to compensate.

Suburban areas are doing well for longer-term airbnb rentals (30+ days). Places like Long Beach, Bakersfield, and areas with large hospitals are doing okay too with more travel personnel coming in. We rent 30+ in Anaheim and are testing that market out now. But it's a super limited option here due to STR restrictions.