All Forum Posts by: Nathan Carter

Hi @Marie Mortensen  As mentioned by the other post above it depends on what is in the property management contract.  That said, a late fee is not rent and the property management fee should not apply.   The fee is a penalty to encourage the tenant to pay on time in the future and the funds are to “reimburse” the owner for the additional time they had to wait to receive their rent payment.  A property manager should forward the entire amount to the owner, but not all of them do.

Hi @Kyle Elmer thanks for the suggestions.  Cheers, Nathan

Hi @Kevin Estey I just saw your post above from last year.  I invest in real estate in the States (Idaho and Florida) and recently moved to Wellington, NZ from Fiji.  I was interested to know if there are any real estate meet ups in Wellington to learn more about the market here.  I am happy to share what I know about investing in the States.  Cheers, Nathan 

@Kristopher Derentz I think you are correct in your analysis of Boise.  I have been investing in Boise for about 12 years, mostly after prices dropped dramatically in 2010.   The appreciation since 2010 has been outstanding, but as you point out rents are below 1%.  Home prices have climbed significantly since 2010, as have property taxes, but rents have not kept up in tandem.  In the nicer neighborhoods, near good schools you can find great tenants who will take care of your property, but it is very difficult to cash flow.  If you can find a property that needs work, you can add value and the numbers can be better.  Personally, I think we are due for a price correction in Boise and I am no longer looking to buy.  I am just keeping an eye on prices and sales activity.  I do not factor in appreciation in my returns, it is just an extra bonus.  The numbers should work on their own without appreciation.  It may be a good time to save cash so you can buy when the correction happens or look at other markets that might have better cash flow for your first deal.   Good luck on your search.

Hi @Ashley S Brown   Boise is a tough market as there has been a significant increase in prices since 2011 and rents have not increased at the same rate.  I have a few rental properties in Boise and it is a challenge to find properties today that will cash flow.  If you don't already own a primary residence and are willing to have roommates it might be a good opportunity to househack-- it would cut down on your monthly housing expenses and help you raise money for your next purchase.  @John Shackles is also right that working with a wholesaler is a second option to find a discounted property.  You have to have some extra money available to be able to make improvements to get the property ready to rent.  The BP calculators are a great tool to crunching the numbers before you buy to make sure you make a good purchase.  Personally, I still think we are heading for a price correction which could make buying easier in some markets.  I have seen more price cuts on Boise properties in the last several weeks, so perhaps market is starting to cool off a bit.

@Edmond Claessens  great success story!  Boise is a tough market to find deals, but you have shown how patience and due diligence can really pay off. It is impressive that this was your first flip, the house looks great.  I hope you find your next deal soon!

Hi @Sean Conklin   

Welcome to the Boise market!  There has been signficant price appreciation of SFRs in Boise over the last seven years.  Particularly for properties that are closer in to downtown.  @Account Closed who is also on this thread knows the Boise market well and can give you some thoughts on options.  Good luck on your search for a property.

Hi @Taylor L.  I only own one small commercial property so I am less familiar with that market.  I focus primarily on traditional residential properties with a buy and hold strategy. 

@Steven Gillmer @Account Closed I am also a small investor in the Boise area and I have found it very hard to find deals that pencil out in the last year.  We have had strong appreciation in Boise since 2011 and the cash flow is just not there.  Unless, you can find a property where you can really add value.  The area is growing and there is new job growth, but the market valuations are starting to feel similar to 2008 when the prices fell by 40%.   I would not expect such a significant downturn this time around, but it might be best to keep looking until the market cools a bit.  The prices might be better down the line.  Good luck on your search as Boise is a great area. 

Hi @Robert White the market is still pretty strong in Boise, I think you would do well on just a straight sale, without a renter as @Jonna Weber suggested.  You could go with a 1031 exchange, but that is going to require you finding your next investment property pretty quickly.  You have 45 days to find your replacement property and must close within 180 days to avoid taxes.  Make sure you find someone experienced in 1031s to help to do this correctly.  The other option is just to sell, pay the tax, and have the cash available to put into another property at the right time.  Deals are harder to find in Boise these days, they exist, but you have to do some searching.   Best of luck on your decision.