Author Archives: Nancy Davidson

Toyota U.S. Snowboard and Freeski Grand Prix

The Toyota U.S. Snowboard and Freeski Grand Prix is this Friday, February 3rd and Saturday, February 4th. Come watch some of the best skiers and snowboarders in the works as they compete on their pathway to qualify for the 2023 U.S. Olympic Snowboard and Freeski teams. Come cheer on your favorites! You won’t want to miss this opportunity to see some of the best athletes in this sport in action.

Visit the official event website for additional information. The event will take place at Main Lodge with contests in Main Park below the chair line of Unbound Express. The sponsor village will be at the base of the competition venue, right off the Main Lodge sundeck.

 

Nancy Davidson
Mammoth Village Properties
760 937-2301 mobile
[email protected]
www.MammothCountry.com
CA Broker’s License #01264041

Nancy Davidson is your ultimate real estate resource for Mammoth Lakes, CA and The Eastern Sierra. Visit my website for detailed information regarding today’s real estate markets.

Photo by Dane Deaner on Unsplash

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What’s the Best Use of Your Investment Property?

The residential rental market is now the fastest-growing segment of the housing market. In the United States, the demand for single-family rentals, defined as either detached homes or townhouses, has risen 30 percent in the past three years. And in Canada, rental units now account for nearly one-third of the country’s homes, with particular demand for multi-family units, including apartments and condominiums.

At the same time, the short-term, or vacation, rental market is also booming. The popularity of online marketplaces like Airbnb, HomeAway, and VRBO has helped the short-term rental market become one of the fastest-growing segments in the travel industry.

Now, more than ever, there is an abundance of opportunity for real estate investors. But which path is best: leasing your property to a long-term tenant, or renting your property to travelers on a short-term basis?

In this post, we examine the differences between the two investment strategies and the benefits and limitations of each category.

WHY INVEST IN A RENTAL PROPERTY? The Top 5 Reasons

Before we delve into the differences between long-term and short-term rentals, let’s answer the question: “Why invest in a rental property at all?”

There are five key reasons investors choose to real estate over other investment vehicles:

  1. Appreciation
    Appreciation is the increase in your property’s value over time. And history has proven that over an extended period, the cost of real estate continues to rise. Recessions may still occur, but in the vast majority of markets, the value of real estate does grow over the long term.
  2. Cash Flow
    One of the key benefits of investing in real estate is the ability to generate steady cash flow. Rental income can be used to pay the mortgage and taxes on your investment property, as well as regular maintenance and repairs. If appropriately priced in a solid rental market, there may even be a little extra cash each month to help with your living expenses or to grow your savings.

    Even if you only take in enough rent to cover your expenses, a rental property purchase will pay for itself over time. As you pay down the mortgage every month with your rental income, your equity will continue to increase until you own the property free and clear … leaving you with residual cash flow for years to come.

  3. Hedge Against Inflation

    Inflation is the rate at which the general cost of goods and services rises. That means as inflation rises, the money you have sitting in a savings account will buy less tomorrow than it will today. On the other hand, the price of real estate typically matches (or often exceeds) the rate of inflation. To hedge or guard yourself against inflation, real estate can be a smart investment choice.

  4. Leverage
    Leverage is the use of borrowed capital to increase the potential return of an investment. You can put a relatively small amount down on a property, finance the rest of the investment with a mortgage, and then profit on the entire combined value.
  5. Tax BenefitsDon’t overlook the tax benefits that can come with a real estate investment, as well. From deductions to depreciation to exemptions, there are many ways a real estate investment can save you money on taxes. Consult a tax professional to discuss your particular circumstances.

These are just a few of the many perks of investing in real estate. But what’s the best strategy to maximize returns on your investment property? In the next section, we explore the differences between long-term and short-term rentals.

LONG-TERM (TRADITIONAL) RENTAL MARKET

When most people think of owning a rental property, they imagine buying a home and renting it out to tenants to use as their primary residence. Traditionally, investors would use their rental property to generate an additional stream of income while benefiting from the property’s long-term appreciation in value.

In fact, that steady and predictable monthly cash flow is one of the key advantages of owning a long-term rental. And as an owner, you don’t usually have to worry about paying the utility bills or furnishing the property—both of which are typically covered by the tenant. Add to this the fact that traditional tenants translate into less time and effort spent on day-to-day property management, and long-term rentals are an attractive option for many investors.

However, there are also limitations to long-term rentals, which often come down to your ability to control the property. Perhaps the most obvious one is that you do not get to use the home or closely monitor its upkeep (this is different from a short-term rental, which we’ll share in the next section).

In addition, while you can usually generate a steady, predictable income stream with a long-term rental, you are limited in your ability to adjust rent prices based on increasing or seasonal demand. Therefore, you may end up with a lower overall return on your investment. In fact, according to data from Mashvisor, in the 10 hottest real estate markets, short-term rentals produced “significantly higher rental income” than long-term rentals.

SHORT-TERM (VACATION) RENTAL MARKET

Short-term rentals are often referred to as vacation rentals, as more and more travelers enjoy the benefits of staying in a home while on vacation. In fact, according to Wells Fargo, vacation rentals are steadily growing and predicted to account for 21% of the worldwide accommodations market by 2020.

Investing in a short-term rental or funding your second-home purchase by renting it out can offer many benefits. If you purchase an investment property in a top travel destination or vacation spot, you can expect steady demand from travelers while taking advantage of any non-rented periods to enjoy the home yourself. In addition to greater control over how your property is used, you can also adjust your rental price around peak travel demand to maximize your returns.

But short-term rentals also have risks and drawbacks that may dissuade some investors. They require greater day-to-day property management, and owners are typically responsible for furnishing the property, upkeep, and utilities.

And while rental revenue can be higher, it can also be less predictable based on seasonal or consumer travel trends. For example, a lack of snowfall during ski season could mean fewer bookings and lower rental revenue that year.

In addition, laws and limitations on short-term rentals can vary by region. And in some areas, the regulations are in flux as residents and government officials adapt to a new surge in short-term rentals. So make sure you understand any existing or proposed restrictions on rentals in the area where you want to invest.

Urban centers or suburban communities may be more resistant to short-term renters, thus more likely to pass future limitations on use. To lower your risk, you may want to consider properties in resort communities that are accustomed to travelers. I can help you assess the current regulations on short-term rentals in our area. Or if you’re interested in investing in another market, I can refer you to a local agent who can help.

 WHICH INVESTMENT STRATEGY IS RIGHT FOR YOU?

Now that you understand these two real estate investment options, how do you pick the right one for you? It’s helpful to start by clarifying your investment goals.

If your goal is to generate steady, predictable income with less time and effort spent on property management, then a long-term rental may be your best option. Also, if you prefer a less-risky investment with more reliable (but possibly lower) returns, then you may be more comfortable with a long-term rental.

On the other hand, if your goal is to purchase a vacation or second home that you’ll use, and you want to defray some (or all) of the expense, then a short-term rental may be a good option for you. Similarly, if you’re open to taking on more risk and revenue volatility for the possibility of greater investment returns, then a short-term rental may better suit your spirit as an investor.

But sometimes the decision isn’t always so clear-cut. If your goal is to purchase a future retirement home now to hedge against inflation, rising real estate prices, and interest rates, then both long- and short-term rentals could be suitable options. In this case, you’ll want to consider other factors like location, market demand, property type, and your risk tolerance.

 HERE OR ELSEWHERE … I CAN HELP

If you’re looking to make a real estate investment—whether it’s a primary residence, investment property, vacation home, or future retirement home—give me a call. I’ll help you determine the best course of action and share insights and resources to help you make an informed decision. And if your plans include buying outside of our area, I can refer you to a local agent who can help. Contact me to schedule a free consultation!

 

Nancy Davidson
Mammoth Village Properties
760 937-2301 mobile
[email protected]
www.MammothCountry.com
CA Broker’s License #01264041

Nancy Davidson is your ultimate real estate resource for Mammoth Lakes, CA and The Eastern Sierra. Visit my website for detailed information regarding today’s real estate markets.

Photo by Leeloo Thefirst

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Mountain Freedom Camp

The Disabled Sports Eastern Sierra Operation Mountain Freedom camp is this Sunday, January 22nd through Friday, January 27th. This camp provides “An opportunity for military participants with disabilities to experience the exhilaration of adaptive snow sports including alpine and cross-country skiing, snowboarding, and more in a supportive mountain community.”

Visit the official event website to sign up today. Disabled Sports Eastern Sierra is “a 501(c)(3) non-profit organization providing adaptive sports and therapeutic outdoor recreation for people with disabilities.” Looking for ways to donate? Visit the official Disabled Sports Eastern Sierra website to learn how.

 

Nancy Davidson
Mammoth Village Properties
760 937-2301 mobile
[email protected]
www.MammothCountry.com
CA Broker’s License #01264041

Nancy Davidson is your ultimate real estate resource for Mammoth Lakes, CA and The Eastern Sierra. Visit my website for detailed information regarding today’s real estate markets.

Photo courtesy of Disabled Sports Eastern Sierra

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The Felici Piano Trio

Join the Felici Trio and guest Ambroise Aubrun for an evening of music! Chamber music by Beethoven, Janáček and Mendelssohn, this Saturday and Sunday, January 21st and 22nd at the Cerro Coso Community College.

The Felici Trio is the musical home of Belgian pianist Steven Vanhauwaert German violinist Rebecca Hang and American cellist Brian Schuldt. Felici members are prize winners of the Los Angeles Liszt, Yellow Springs, and Osaka music competitions. This trio has performed over 350 concerts in Europe, South America, and the U.S. and has distinguished itself as a unique presence on the national music scene since coming to Mammoth Lakes.

For additional information visit the Felici Trio’s official website and be sure to purchase your tickets today!

 

Nancy Davidson
Mammoth Village Properties
760 937-2301 mobile
[email protected]
www.MammothCountry.com
CA Broker’s License #01264041

Nancy Davidson is your ultimate real estate resource for Mammoth Lakes, CA and The Eastern Sierra. Visit my website for detailed information regarding today’s real estate markets.

Photo by Manny Becerra on Unsplash

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Free Entrance Day in the National Parks

Monday, January 16th enjoy free entrance to your favorite National Parks. There are only 5 free days in 2023 so you will want to take advantage. The fee-free days provide a great opportunity to explore a new place or visit an old favorite!  The entrance fee waiver for fee-free days does not cover amenity or user fees for activities such as camping, boat launches, transportation, or special tours.

Visit the official event website for additional information. Other free days in 2023 are April 22nd, August 4th, September 23, and November 11th.

 

Nancy Davidson
Mammoth Village Properties
760 937-2301 mobile
[email protected]
www.MammothCountry.com
CA Broker’s License #01264041

Nancy Davidson is your ultimate real estate resource for Mammoth Lakes, CA and The Eastern Sierra. Visit my website for detailed information regarding today’s real estate markets.

Photo by Thom Milkovic on Unsplash

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For Sale ~ 1111 Forest Trail #1123, Mammoth Lakes CA 93546 — $959,000

FULLY FURNISHED MAMMOTH VILLAGE CONDO!

Fabulous fully furnished 2 bedroom/2 bath unit in the heart of the Village of Mammoth. This ground floor condo overlooks the reflecting pond and pool. Peaceful location. Has newer carpet and paint. Sold fully furnished and ready for a quick sale for the upcoming ski season.

The Village has it all — fitness room, ski access, walk to gondola, restaurants, coffee shop, retail shops, music festivals, underground parking, charging station, pool and spa.

For more information visit Grand Sierra Lodge #1123.

Contact Nancy Davidson for All Your Real Estate Needs! For more information or to schedule a showing visit www.MammothCountry.com or email [email protected]. Let me make your home selling and or buying experience one of a kind!

 

Nancy Davidson
Mammoth Village Properties
760 937-2301 mobile
[email protected]
www.MammothCountry.com
CA Broker’s License #01264041

Nancy Davidson is your ultimate real estate resource for Mammoth Lakes, CA and The Eastern Sierra. Visit my website for detailed information regarding today’s real estate markets.

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For Sale – 115 Ocean View Road, Bishop CA 93514 ~ $829,000

DESIRABLE 40 ACRES HOME!

Super-efficient newer home in 40 Acres! This 3 + loft/2.5 bath Lindal Cedar home was built in 2007 and has an over-sized detached 2 car garage plus a garden shed. The lot is .85 acres and has 2 streams and a fenced yard with native landscaping.

The house features stone countertops in the kitchen plus bamboo flooring and also tile & carpet, wood burning fireplace, solar, a tankless water heater, evaporative cooler, water filtration system and a metal roof. The exterior siding is concrete Hardie Board. Plus, there’s a 3,000-gallon water tank near the garage!

Enjoy the lovely setting in Round Valley right below Mt Tom and the beautiful views from this highly sought-after neighborhood. Very convenient to both Bishop and Mammoth.

Click Here to view the virtual tour! For more information visit 115 Ocean View Road.

Contact Nancy Davidson for All Your Real Estate Needs! For more information or to schedule a showing visit www.MammothCountry.com or email [email protected]. Let me make your home selling and or buying experience one of a kind!

 

Nancy Davidson
Mammoth Village Properties
760 937-2301 mobile
[email protected]
www.MammothCountry.com
CA Broker’s License #01264041

Nancy Davidson is your ultimate real estate resource for Mammoth Lakes, CA and The Eastern Sierra. Visit my website for detailed information regarding today’s real estate markets.

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Woolly’s Tube Park

Woolly’s Tube Park is fun for the whole family with high-speed snow tube lanes and a snow play area for even the smallest of tube enthusiasts to enjoy. Everyone can enjoy a cup of hot cocoa or adults can enjoy a variety of adult beverages.

Bring the whole family and your sure to have a blast tubing down the groomed lanes in your high-speed snow tube. Visit the official Woolly’s Tube Park website to schedule your reservation today!

 

Nancy Davidson
Mammoth Village Properties
760 937-2301 mobile
[email protected]
www.MammothCountry.com
CA Broker’s License #01264041

Nancy Davidson is your ultimate real estate resource for Mammoth Lakes, CA and The Eastern Sierra. Visit my website for detailed information regarding today’s real estate markets.

Photo by Kostiantyn Li on Unsplash

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NYE Fireworks

Ring in the new year with fun and fireworks at the Village at Mammoth NYE fireworks! Dance the last dance of the year to Dead Winter & Co at 8 PM, with the fireworks extravaganza beginning at 9 PM.

Visit the official event website for additional information. Send 2022 off with a bang and get excited to greet 2023 at this one-of-a-kind spectacular celebration. You won’t want to miss it!

 

Nancy Davidson
Mammoth Village Properties
760 937-2301 mobile
[email protected]
www.MammothCountry.com
CA Broker’s License #01264041

Nancy Davidson is your ultimate real estate resource for Mammoth Lakes, CA and The Eastern Sierra. Visit my website for detailed information regarding today’s real estate markets.

Photo by Matt Hoffman on Unsplash

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Cut Heating Costs This Winter

Saving money is important to just about everyone and there are many things you can do without but during the winter months, it’s hard to imagine not having heat in our homes. Even while running the heat at the level necessary to be comfortable in your home, there are several simple things you can do to save money on your heating bill. Take some time to review a few ways you can save money without turning your home into an a very large freezer.

Wear an Extra Layer (or Two)

Most of us have extra clothes that we rarely wear and a linen closet full of blankets we can use to keep warm. No one is suggesting you sit around your house in a parka with a hat and gloves but there are plenty of items you can wear that will still be comfortable while adding extra warmth allowing you to decrease your thermostat setting by a few degrees. Keep a blanket in the room you spend the most time in so you can wrap up when you are relaxing. While you are pulling blankets out of the linen closet, add a blanket to all of the beds in your home so you can keep the thermostat lower at night as well.

Space Heaters

Depending on the size and layout of your home, you may have some rooms that you don’t use very often. If you are spending most of your time in just a couple rooms, adjust the thermostat for most of the house to a lower temperature and add space heaters in the rooms you use most often. Small space heaters will quickly heat the rooms you are using when you turn them on and you don’t have to spend as much money to heat rooms in your home that you rarely set foot in like the guest room or bonus room.

Open Your Curtains

While you probably keep the blinds and curtains closed during the summer season, when the weather turns cold, open them and let as much sunshine in as you can. While the sun will also improve your mood, it offers FREE heat and can make a big difference compared to keeping everything closed.

Seal Your Doors and Windows

Stop letting the heat you are paying for to the outside through your doors and windows. Sealing your windows and doors with caulk or weatherstripping can drastically reduce your electric bill by increasing the energy efficiency of your home.

Use Your Oven Heat

Dinner just came out of your 350-degree oven and you are turning it off as you sit down at the table. Go ahead and take advantage of the oven heat by opening the oven door and letting the residual heat from the oven dissipate into your home. If you have young children, make sure they understand the oven is hot and know not to touch it.

Install a Programmable Thermostat

Use a programmable thermostat to adjust the temperature of your home to a cooler setting when you aren’t home or at night when you are sleep. By using the extra blanket, you put on your bed, you won’t need to keep the house as warm at night and you certainly don’t need to pay to keep it as warm when you aren’t home.

Keeping your home warm doesn’t have to cost a fortune. With some simples changes in your habits, you can keep your home comfortable without spending a fortune this winter.

 

Nancy Davidson
Mammoth Village Properties
760 937-2301 mobile
[email protected]
www.MammothCountry.com
CA Broker’s License #01264041

Nancy Davidson is your ultimate real estate resource for Mammoth Lakes, CA and The Eastern Sierra. Visit my website for detailed information regarding today’s real estate markets.

Image courtesy of nastya_gepp/pixabay.com

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