All Forum Posts by: Karen Margrave

Hope to see all of you there tonight! 

How many square feet is the house? Is each bedroom good sized? What about parking? I had a house that was rented from 2008 to 2021 to various groups of people. It was a 4600 sq. ft. house with pool on 20 acres. The groups were mostly students, and a womens sober living home. The overhead due to the size of the property, not the house, made it difficult. However; if it had just been a house on a large lot, it would have been a money maker. The biggest thing will be cooking, etc. and handling the maintenance of common areas. You have to look at it as it's a commercial venture, and everything is used far more than a typical family home, so the wear and tear on plumbing fixtures, flooring, etc. is much more. Also, what's the HVAC system like? Utility bills could be a deal killer. 

I think we are going to see a lot more co living situations in the years ahead, especially in places like CA where the demand is extremely high, prices high, inventories are low; and building expensive. 

Get familiar with your local market, prices, rents, etc. Is it a buyers or sellers market there? Are lots on which to build plentiful or rare? What's the average price of a home? Can 1st time buyers afford to buy? Are locals able to purchase, or have they been priced out of market? Are there STR in the area? Are they allowed or welcome? There's so many things to look at in the market. With your family owning investment properties and being in the business you have a big advantage. Pick their brains. Get involved in a local meetup if there is one. On fixers and new construction right now, materials are ridiculously high and it's easy to get underwater on rehabs, building, etc.

Interest rates are always a consideration on getting in. They're still low, but all the numbers have to make sense. I'd suggest not putting all your money in, but using a portion of it to get one deal going and see how it turns out. 

@Jay Hinrichs knows a lot about a lot of different markets, he may be able to give you better advice. 

$1,295,000

There are currently (2) renovated duplexes, (1) renovated 2bd/1ba home, and (2) 2bd/1ba homes with garages that need to be completed. The original Owner's residence can also be renovated by next owner with 1 more freestanding cottage to be renovated for a total of (9) potential units. Purchase includes neighboring 1.8 acre parcel with potential for additional housing units. High quality remodel to each unit with new cabinetry, LVP flooring, new fixtures, quartz countertops, new windows, stucco, metal roofing, mini-splits and more.

Located in Redding, CA Close to Sacramento River, Lakes (Shasta and Whiskeytown) hundreds of miles of biking and walking trails.  Mt. Shasta and Mt. Lassen. Sundial Bridge and Turtle Bay. 

Redding is a very popular community, with many of the people from the more populous areas selling homes and relocating here. The past few years have displaced many with catastrophic wildfires in neighboring areas. Add to that the local ministry school with approximately 2000+ students, and no dorms, plus the big city transplants and the housing market has been crushed! RECORD HIGH RENTS are being paid, with no end in sight. 

Contact me:

Karen Margrave

Phone/text: (530) 782-1800

Big Block American Real Estate

DRE 00848454

RARE FIND! and it will go fast. 75 space m/h and r/v park includes 15 park owned m/h 4 cabins and 1 1bedroom apt this park has BEEN OWNED BY BROKER FOR 40 YEARS AND HAS BEEN EXTENSIVLY REMODELED. GREAT CASH FLOW ALL LONG TERM TENANTS. NO OVERNIGHTERS OR WEEKLY FOR EASE OF MGT.LISTING BROKER MUST BE PRESENT FOR ALL SHOWING TO WELL QUALIFED BUYERS. ITS TIME FOR BROKER TO RETIRE AND LET SOMEONE ELSE HAVE THIS UNIQUE INVESTMENT OPPORTUNITY. 4.74 ACRES WITH APPROX 745 FEET OF BEAUTIFUL SACRAMENTO RIVER FRONTAGE. ALL UNITS HAVE LAMINATE FLOORING EXCEPT APT WHICH IS TILE. MOST UNITS HAVE HARDIE BOARD STYLE SIDING. THERE IS A NICE METAL SHOP BUILDING AND A SEPERATE BLOCK BUILDING WITH LAUNDRY AND SHOWERS.. DO NOT DISTURB TENANTS OR MANAGER . ALL QUESTIONS AND SHOWINGS MUST BE ARRANGED WITH BROKER. NO DRIVE BYS. 

Karen Margrave

Big Block American Real Estate

Phone/text: 530-782-1800  (Fastest way to contact me) 

** This is listed by a cooperating broker, and advertised with his permission. I will arrange all showings. It's very high demand property, and will sell fast. 

The devil is in the details. What specifically did the contract state? Did you state that the seller would be responsible for bringing electrical up to current code? What is the amount of the bid to rewire the entire house? What is the price you are in escrow for? What will be the value of the property once wiring is brought up to code? Not sure what a 4PT inspection is. 

After watching this nightmare unfold, it's become very evident that the politics of oil are still at the forefront of our economy, and we are so strictly divided over the policies related to climate change that it forces one party to favor buying oil from our enemies, while the other wants to be completely independent of other countries in regard to oil production. 

Personally I am on the side of American independence, as I believe whenever you give other countries power over such a huge sector of your economy, it brings disaster. If we are ever going to be able to keep costs for building materials, labor, etc. within the bounds of what is affordable, we must be able to control the supply and not be subject to the politics in other countries, etc. 

I understand the politics of climate change, and that's not what this thread is about. Save it for another thread on how it affects housing costs, etc. Let's keep this discussion about the affect the Russian war with Ukraine will effect housing in America, and at this time, it appears it will have a huge impact. Not only because of the Russian oil, but because of the banding together of China, and India along with Russia; and what it can do to the import of so many goods associated with home building and remodeling, technology, etc. I think this has the potential to shake the whole world to it's core. 

With all that is going on in the country regarding supply chain, gas prices, and labor, builders have to be able to protect themselves somehow and be assured they won't end up underwater. At the same time buyers need assurance that they can afford the house that's being built and not charged a huge amount over the original agreed upon price. An escalation clause seems like a good idea, IF everything on both sides is addressed. 

As in real estate, there's probably a way to protect both parties with such a clause. There should be a maximum amount, and some way to verify that materials costs, labor, etc. were higher than when originally started. 

Another option might be a Cost Plus contract. 

I've built spec homes in the past, but wouldn't think of it in this market as it's too hard to find land, and then materials are through the roof. 

Quote from @Russell Brazil:

Quote from @Karen Margrave:

@Jonathan McLaughlin, In 2021, the U.S. imported an average of 209,000 barrels per day (bpd) of crude oil and 500,000 bpd of other petroleum products from Russia. We are basically funding the Russians war on Ukraine. 

America could be energy independent by opening back up the pipeline and ramping up energy production. We have enough natural gas that we could export close to enough to cover Europe's needs allowing them to break away from Russia too. 

The high price of fuel impacts everything we use on a daily basis, including the materials we need for construction, remodeling, etc. and has a huge impact on housing. The supply chain has backed up orders for things cabinets, appliances, flooring, lighting, and so many items for months.

As a Realtor I can tell you that the cost of living, the increase in interest rates, etc. are having an immediate effect on buyers confidence in the market in our area. Add to that the rising cost of energy from PGE due to past fires, insurance costs rising in CA markets, etc. and now this Ukraine war, and it all adds up fast. 

The US is a net exporter of oil and petroleum products and has been for about 15 years. The US is in fact by a long ways energy independent. Focus on the data and not the politcal rhetoric on the subject. 3.3 million barrels per day is the net export.  And the 3 countries we have the largest "import" oil from are Mexico, Canada and UK. Mexico and Canada obviously make the most sense here...but the UK is the exact reason I put import in quotes...as its oil actually drilled for here, just by BP.

We buy 10% of our oil from Russia. The original post is about the effect the war in Ukraine has on real estate, and I want to try to keep it there. When world events begin driving the cost of oil up, it has a devastating effect on our economy, driving up the costs of everything transported or manufactured, and it will hurt every sector of the economy. Do people think extracting oil from other countries that have no standards whatsoever is less harmful? Something as critical as oil, that we have in America in abundance, makes no sense to farm out to others as it gives them power over us, and our economy. The cost of building materials have increased tremendously with the rising oil costs, increasing housing costs, and thus increasing the housing deficits. To maintain stability in our economy we need to control as many factors as possible, and that includes oil production.

@Jonathan McLaughlin, In 2021, the U.S. imported an average of 209,000 barrels per day (bpd) of crude oil and 500,000 bpd of other petroleum products from Russia. We are basically funding the Russians war on Ukraine. 

America could be energy independent by opening back up the pipeline and ramping up energy production. We have enough natural gas that we could export close to enough to cover Europe's needs allowing them to break away from Russia too. 

The high price of fuel impacts everything we use on a daily basis, including the materials we need for construction, remodeling, etc. and has a huge impact on housing. The supply chain has backed up orders for things cabinets, appliances, flooring, lighting, and so many items for months.

As a Realtor I can tell you that the cost of living, the increase in interest rates, etc. are having an immediate effect on buyers confidence in the market in our area. Add to that the rising cost of energy from PGE due to past fires, insurance costs rising in CA markets, etc. and now this Ukraine war, and it all adds up fast.