All Forum Posts by: Noah Laker

 Excellent point Stanley! Common misunderstanding of this statute!

What's up BP, I'm a local broker and investor based in Sacramento and I manage about 100 Airbnb properties. Just wanted to throw this out here in case you guys haven't heard -- the House Ways and Means Committee just released their tax proposal and, as we'd hoped, they are fighting to bring back 100% bonus depreciation -- potentially retroactively for 2025!

This is big news for investors. Probably half of my sales are for high W2 earners looking to take advantage of depreciation via STR. We can expect this to be passed into law possibly as soon as Memorial Day. So, to summarize: Woohoo! Happy tax savings!

I'm a local broker and manage about 100 STR and MTR properties. We always try to get an STR permit regardless so that we can blend these strategies. MTR is great, but it tends to be somewhat inconsistent, meaning you will expect to have gaps in between bookings. This is where STR comes in handy.

Obviously this is a challenge for the arbitrage model, since most places don't allow subletting, and if they do, they won't like short term stays. Work with private home landlords, rather than apartment complexes. 

What's up Justin, I'm a local broker, investor, and I manage 100+ Airbnb properties. Sacramento has been a very stable market for STR so you're definitely on the right track. I didn't see your other post but I'll have a look now and DM you :)

What's up Elvin, we're doing a meetup soon with a big developer here in Sac, it's at Lucid Winery at 6PM, Wednesday May 7th. He'll be speaking about "intro to real estate development." 

Development can be very lucrative but there are so many costs that are easily overlooked the first time, namely in the planning and entitlement phases. 

If you're hoping just to get a few properties as rentals, building from the ground up might be more hassle than it's worth. 

Hey Bryce, I'm a local broker / investor / PM. Few thoughts I'd like to share... 

1) Every investor makes costly mistakes. Don't beat yourself up about it.

2) You might be able to increase your revenue by switching to an STR, sober living, or other creative rental model. That's what we do with most of our properties (LTR cashflow in California is pretty rare these days).

3) If you ultimately need to sell and you're gonna take a haircut, it might be worth exploring Subto or creative finance. Buyers will pay a premium if your interest rate is lower than current market. That, or at least negotiate with a great broker for a reduction in fees. Every bit of savings counts in a situation like this. 

Hey Sejin, usually if you get a notice to vacate from the PM or owner to the tenants that can satisfy the loan requirement. 

VA loans can have a few extra hurdles, so from a seller's perspective a cash offer is more attractive (no loan or appraisal contingencies and no lender-imposed inspection requirements), but if you make a competitive offer, and especially if they haven't received other offers yet, it's worth pursuing regardless.

Hey Ilya, I'm a local investor, real estate broker, and property manager -- we manage about 100 STR properties in addition to long term.

Love the strategic thinking here. I think your greatest barrier is "analysis paralysis..." a very common affliction. There are limitless opportunities out there, and it can be quite overwhelming. 

There's something to be said for investing in your backyard, where you have full control over the property and your service vendors. If something goes wrong in Indiana, it's gonna be a massive headache, whereas if something goes wrong nearby, you can go and resolve it quickly and efficiently. 

Additionally, those cheaper midwestern markets tend to fluctuate and do not appreciate the same way that a "blue chip" market like NorCal will. This should be considered. 

There are many multifamily opportunities in Sacramento and surrounding areas. In your shoes, I would buy a small duplex-fourplex, live in one unit, and rent the others. This would be a better long-term play as you pay down the equity and "hack" the property. Just my two cents. 

Of course it's better to have your own representation. "Dual representation" is an oxymoron; one agent cannot balance two opposing interests without giving bias to one side or another, either directly or indirectly. 

What's up Seth, glad you tapped into the BP community for advice. I'm a local broker, investor, and property manager. At this price point it might be worth investing in a professional appraisal, or just meet with a great broker. You'll want not just to go off of comp sales, but also potential income / cap rate calculation, and reproduction costs. Appraisers use multiple methods and you should too.