All Forum Posts by: Sherry T.
Sherry T. has started 5 posts and replied 18 times.
Post: Has anyone had success with STR in the Downtown Sacramento Market
- Posts 18
- Votes 8
Quote from @Dan Sundberg:
I'm finishing up an ADU garage conversion in Downtown Sac and plan to do medium term rental for travel nurses. The logistics are simpler since as you get 4-5 turns/year and it isn't affected by the city ordinance on STRs. Also, long term, I expect Sac will enact tougher restrictions on STR, given the intense housing crunch we're experience, so I personally don't expect that to a be a good long term strategy. However the medium term rental seems like a good option. Our 275 sq ft furnished garage should rent for $1600 - $1800/mo and the only extra fees compared to long term is $99/yr to post on furnishedfinders.com.
...I should have this finished by the end of next month, so can keep you updated on whether this plan works and what we rent for.
Hi! Just read your post and am curious… How has renting out your DT Sac ADU go been?
Quote from @Andy Lanyi:
@Sherry Tsai
If you choose to self manage, it would be the one closest to where you live. You will have to go there once to twice a week to make sure that trash doesn’t get out of control. I live in Pasadena and have multifamily in Longbeach, and I hate the traffic to get there. Long Beach is so fringe oriented and prices are so high that it is pricing out the low income people out. So, my opinion is if you purchase in Longbeach, in a fringe area,the area will get better.
Hi @Andy Lanyi. I’d be miserable if I had to drive in traffic to LB every week to clean trash. Riverside is a better commute because it’s against the flow of traffic.
I’d I may ask, what kind of property do you have in Long Beach? And is there a neighbor or someone in the area you could pay to deal with the trash?
Quote from @Tim Ryan:
I was taught to buy "in your own back yard first" and I'm in Los Angeles. I bought two SFR is Desert Hot Springs (years ago). They were just barely decent investments. Held for 8 years and make a small amount. So I'm not sure it's the best advice anymore for us SoCal investors. I quickly found Chattanooga Tn in 2009 (very early) and made a killing. I'm now investing in WI. So, my advice for you is to go OOS as I've done far better than I would have here.
@Jonathan Greene I appreciate your input. Unfortunately the ship may have sailed to invest in Davis, as she only has a year left before she graduates.
Quote from @Eric Gerakos:
My rental properties are all in Riverside county. Great appreciation and cashflow if you know where and how to buy.
Post: Do You Agree with this Statement from “The Book on Rental Property Investing”?
- Posts 18
- Votes 8
I read this last night from “The Book on Rental Property Investing” by Brandon Turner:
- Break even on cash flow or lose money on cash flow, and you are on a path to financial ruin.
- I’ll repeat myself one last time: Buy rental properties that offer cash flow today.
I’m interested to know whether experienced investors Agree/disagree and why?
Quote from @Jesse Rivera:
Hi Sherry,
I live in Long Beach, so know the area.
We do a little property management, and some flipping, so always have our ears to the ground for properties. There is a severe shortage of home to rent in north OC, when one of our client's homes come up for rent, it is a feeding frenzy. And I always see fixers at a decent price (if yo don't mind putting some money into it).
I am primarily a mortgage lender, so happy to answer any questions about financing. And if you give me your parameters, I can keep my eye out for a property.
Thank you @Jesse Rivera! I do have questions about lending. North OC are my stomping grounds so if I’d love to hear its advantages over LB/Riverside. I’ll DM you.
Hi All!
New to BP and am really impressed by this community!
After debating local vs. or OOS, it seems like prudent advice to try to start locally with long term MF in so cal. Most of SoCal feels unaffordable to me so Im looking in Riverside or downtown Long Beach. I’m SAHM and have the time to self manage. I’m not looking for cash flow per se, but I’d like for the investment to justify taking out of my professionally managed stock portfolio which did 20% this year.
These are the pros and cons of these markets as I see it:
Riverside: Larger units with more bedrooms; I can afford better neighborhood with less crime (50 percentile); properties are less old but ugly.
DT Long Beach: beachy urban setting with smaller units 1bdr; close to tourist attractions, and thinking I can STR one unit; BUT high crime rate (90 percentile); properties are older but more attractive
Is it better to go into a slightly better neighborhood in boring Riverside or a more crime ridden area of cool kid Long Beach? Are there other local markets I should be considering?
Alternative I have a daughter up in Davis that we could help house hack…