All Forum Posts by: Karen Margrave

Hello everyone. I haven't forgotten about Meetups, etc. I've just been swamped, showing properties, with everyone trying to tie stuff down before rates go up again. At the same time, there's so many people on the fence, thinking prices are going to crash. It's a crazy time for sure! I am going to schedule another meetup, beginning in September. however the last one only had a few people, and they only work if we have good participation. We talked about opening the meetups to the general public, and not just BP members to get more people. let me know what topics you'd like to get more expertise on, and I'll line up some people to come so we can pick their brains. (Insurance, Loans, Zoning, STR, ADU's, ?? )

keywords: Redding, northern California, STR, LTR, investment property, Shasta, Lassen, Lake Shasta, Anderson, Cottonwood,

It's definitely one of those issues that is very specific, and would need to be worked out with Planning. I would suggest one or both of you go talk to a Civil Engineer and ask if they can see a way to accomplish what you are trying to do. They will know the code, etc., and have relationships at the City. It will probably save you a lot of time and headaches to go that route. Butler Engineering is good. Are you actually building the ADU or contracting out? On Meetups, I wasn't getting enough people consistently to do it. I'm thinking of opening it up to other investors, and not just BP. I will be posting in the future. I am waiting to see where this market is headed, as I know a lot of people are sitting on the fence right now.

@Jaedon Carlisle Welcome! You're right there's few units on the market, but they do come up and if you're ready to commit, you can find something. However; none of them are going to be "deals". We have an extremely competitive market, huge demand and low inventory. Add to that top dollar is being paid for rentals. I am considering starting a new REI Meetup for Redding members of BP and the public at large. Unfortunately, we just don't have enough BP members right now that can make meetups. I'm sure it's more due to the market conditions. I'm a Realtor and General Contractor with years of experience in Redding, buying, selling and developing properties; and will be happy to answer any questions you have about the market, the area, types of properties, etc. Set your keyword alerts for Redding, Redding Investors, etc.

CA will do anything to fleece its citizens. We have the strictest regulations and standards in America. Zoning laws together with fees and red tape limit construction, except for the largest developers. There is such a huge demand for housing that few people sell, so the opportunities to buy up fixers and flip them is a pipe dream. Here in Redding rent is so expensive it should be a crime! I'm not sure how this is going to shake out, but I do hear of contractors having problems with bankers not wanting to complete funding on projects that they already have in the works, etc., and they're starting to lay off workers. What are you seeing in your areas? 

You definitely want to get the approval of the HOA beforehand. How many parking spaces are you allowed to use? Would they be sufficient for renting out rooms? What amenities are there in the complex? If there's a pool, laundry room, etc. having extra tenants puts a higher burden for property owners, and probably won't be allowed.

I'd find a different deal. However; if you do move forward be sure to make closing contingent upon the property being vacant at COE, otherwise hard pass! 

You definitely want to know the laws of your state regarding property management. Here in CA you have to be licensed. In addition, our laws are so complex and ever changing, and favor tenants over property owners. Trying to manage properties as a side hustle would be asking for a lot of problems. However if you start a company and have a licensed person (if required by the state) running it, that might be a good option, though may not be very profitable. 

@Chris Seveney As a General Contractor myself, I'd love to find note investors in my area to get deals from. Our market is so tight right now. Where would you suggest finding note investors? Also, where can I get a list of asset managers that service northern CA? Thanks for your feedback! 

The previous posters offered some good advice. You said you have a good concept, so must have already done some deals. I'd suggest you put them on the deal forums with photos so that people can see what you did, along with the numbers, etc. If people see you're doing good deals, and there's money to be made, it's easy to find money. Also, do an ad on Marketplace. 

@Sam Booth I am a Realtor in Redding. Our market has an extremely high demand. There are properties that come up that are good for rentals. Landlords are getting top dollar for rent. Prices are high. Everyone thinks the market is going to crash, and because of that I did this FB post the other day. Maybe it will help you. Also, Anderson and Cottonwood are good areas for rentals. 

EVERY DAY we talk to people asking if the market is going to crash. I do not have a crystal ball, but as an experienced agent, contractor and developer, that has weathered recessions and the crash, here's what I can tell you. 

1. Higher interest rates will eliminate buyers on the lower end of the ladder, and move others down a rung, meaning fewer buyers in the market.

2. As rates go up, fewer buyers qualify for loans, and get less home for their investment dollars

3. Markets are mostly local, and driven by local conditions. Here in Redding and Shasta County we have the perfect storm that eats up housing.

a. Wildfires decimated a large number of homes in northern CA, pushing homeowners that lost homes into the rental market. Many of those people rather than rebuilding, sold their homes to builders, and they either remained in the rentals, taking their money from insurance and buying smaller homes, traveling, etc. as their family needs didn't require the larger house they once had, etc.

b. BSSM Bethel School of Supernatural Ministry takes up a huge number of rental units in apartments, homes, etc. as they are not required by our local planners to provide housing for students. 

c. Due to the beautiful area we live in, it's a perfect location for tourists. The growth of Airbnb properties (STR Short Term Rental) has taken many of these homes off the LTR (long term rental) market.

d. Covid brought us many buyers fleeing bigger cities, buying homes and renting properties, thus adding more demand. All of these things have put a huge demand on our local market. If you're thinking of selling, prices are still at all time highs, with no guarantee future appreciation will continue. Nothing is certain. We have no idea what the future holds. Will more businesses close due to the high cost to buy goods, pay utilities, etc. and unemployment rise? We have no idea! Suggestion: Make your decisions based on what the reality is today and the foreseeable future. Gambling on the market crashing and home prices going down is just that, gambling. As interest rates go up, people can afford less. If you want to buy or sell, there may never be a better time than now!