All Forum Posts by: Noah Laker

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. 

 You may want to consult a property manager!

Above all, make sure you're cognizant of fair housing regulations... If they meet your criteria, you may not have a valid reason to decline their application. Base your decisions on hard facts only and maintain a paper trail. 

Hey Anton, I'm a broker and property manager here in Sacramento with a lot of experience in coliving, we manage about 100 airbnb rentals and some by the room. The answer to your question probably depends on other lifestyle factors, and your goals with your real estate portfolio. There might be a time to cut losses and just sell it, or if it makes sense your other plan could work, as long as you pull permits and do everything carefully. What does your gut say?

I'm a real estate broker and my client is a high W2 earner, taking advantage of the "STR Loophole"

His CPA told him that he can only do cost segregation on properties which are active STR's.

My understanding was that, if he obtains REP status through any one of his properties, that he can take advantage of depreciation on any investment property, even if that one is not an STR. Am I missing something?