Tag Archives: Mammoth Lakes Real Estate

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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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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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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Prep Your Home Now for the New Year

Here are some simple maintenance tips that will help keep your home in good shape. Fortunately, most maintenance chores are quick and don’t require any special skills.

Maintaining appliances equals keeping the value in your home. This will help protect your investment, and one of the easiest waysnancy to do this is to keep up with maintenance on your property. It will also make preparations easier when you are ready to sell.

In the kitchen, clean the vent filters on your range hood before they get clogged with grease and dirt. Your range hood helps keep your home clean by pulling cooking smoke and grease out of the air. Disposable filters can be replaced regularly. If you have metal filters, wash them by hand.

Keeping the drip bowls under your stovetop burners clean will help keep your stove in good condition and prevent food particles from burning when you cook. Check the oven door to make sure it seals properly, so you don’t lose heat and energy every time you use it.

Keep your refrigerator running efficiently by vacuuming the coils a couple of times a year. Your refrigerator is one of the biggest energy users in your home.

To maintain your disposal, remove any large pieces stuck inside, then run ice through it to help clean out any small particles. You can add salt or vinegar to the ice for extra cleaning. It’s easy for food to get caught in your garbage disposal, which can create a bad smell in your kitchen. Freshen your entire kitchen by running a few small pieces of lemon or orange peel through the disposal.

For major appliances such as your clothes dryer, save energy and help protect your home from fire by vacuuming the lint out of the dryer exhaust vent at least once a year. Your clothes dryer is another big, expensive energy user in your home.

Your air conditioner will run more efficiently, use less energy, last longer and keep your home cooler if you change your disposable filter at least once a month. If you have a reusable filter, vacuum it every month.

You especially need to keep up with maintenance if you are getting ready to sell your home. By keeping up with these small maintenance projects, you’ll protect your home and make it easier to take care of larger issues as they come up. Contact me today for a consultation on selling your house, and to find out how much your home is worth.

 

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 Sidekix Media on Unsplash

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Unseasonably Good Advice

The real estate market changes frequently; it seems that something happens daily to affect it. Mortgage interest rates, home prices, inventories of homes for sale – all affect the real estate market, as well as other complicated factors to do with lending and regulations.

Fortunately, best practices don’t change. Consumers may not know how to buy a home under today’s conditions. Whether it’s a buyer’s market, seller’s market, or something in between, these tips will help you buy a home in any market.

  • Don’t try to time the market. Purchasing a home is a long-term investment. You are going to live in this house for several years. Don’t rush to buy because you think prices are going up, or put off buying because you think prices are falling.
  • Do work with a good Realtor®. A knowledgeable real estate professional can help you get a good house at a fair price, instead of overpaying for a home you don’t like, or not finding a property at all. Your Realtor® knows the market and can help you find the best options in your price range. They’ll also help you structure your offer to make it attractive to the seller.
  • Don’t to get too emotional about the process of buying a home. It’s easy to lose your cool if the property you love is sold before you get a chance to look at it, or if someone outbids you for your dream house. Remember that there are always more properties out there, and that you will find one that is right for you.
  • Do make your best offer. A lowball offer on a property simply wastes the seller’s time, and your own. If you are serious about buying the house, put your best foot forward and make an offer that reflects the value of the home and the neighborhood.

Contact me today for an appointment to discuss the property you’re looking for. I can guide you through the buying process and help you end up with your dream home. In any real estate market, home buyers could use a helping hand.

 

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 by Oleksandr Pidvalnyi from Pixabay 

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Starry, Starry Night Extravaganza

Dance the night away this Saturday, December 10th at the Starry, Starry Night Extravaganza! This is a one-night ball with dinner, dancing, live music, a wine grab, and a silent auction all benefitting Disabled Sports Eastern Sierra. The Extravaganza is their biggest fundraiser of the year and proceeds go toward providing live-changing recreation opportunities for athletes with disabilities in our community.

You won’t want to miss this night of fun and live entertainment all benefiting an excellent cause. Visit the official event website to purchase your tickets today! Can’t attend? No worries, you can still support Disabled Sports Eastern Sierra. Visit the official DSES website to find out 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 by Mark Basarab on Unsplash 

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8th Annual Footloose Mammoth Lakes Turkey Trot

Get your Thanksgiving Day off to a healthy start at the 8th Annual Footloose Mammoth Lakes Turkey Trot. Mammoth Lakes Turkey Trot will begin Thanksgiving Day, November 24th at 9 AM starting at Trails End Park. Enjoy the two-mile fun run through beautiful Mammoth Lakes and celebrate your victory with a complementary finish line hot chocolate or hot apple cider. Bring the whole family and costumes are encouraged!

Visit the official event website for additional information and to register today. Kick start your holiday season by committing to health and fitness with a two-mile road race in Mammoth Lakes.

 

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 Mikkel Bergmann on Unsplash

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Mammoth Festival of Beers and Bluesapalooza

The Mammoth Festival of Beers and Bluesapalooza is back! Starting Thursday, August 4th take part in this epic event featuring over 85 craft breweries/cideries. Did you know that the Mammoth Festival of Beers and Bluesapalooza is the most extensive craft beer and music festival in the region? During this event, you will hear from over 20 bands performing from genres ranging from unblues and rock to R&B and soul. Delectable treats will also be available from food vendors from many of Mammoth’s finest restaurants! What are you waiting for?

Visit the Mammoth Bluesapalooza official website to purchase your tickets today! Don’t miss out on your chance to dance the night away while enjoying tasty treats and delectable craft brews.

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 sebastiaan stam on Unsplash   

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Pricing Your Home to Sell

One area of listing a property that sellers tend to worry over most, is pricing a home. You want to sell your home quickly and get a fair price, but how do you know what to ask for it? Here are some tips on pricing your home to sell.

  • Leave your emotions out of the process. The price of your home shouldn’t include how much you paid for the house, how much you enjoyed living there, or the fact that your kids grew up there. You’ll need to base your price strictly on what your house is worth today in your neighborhood.
  • Look at similar homes in your neighborhood that have sold recently. This will give you an idea where to start pricing. You can also visit any houses that are currently for sale, to see how they compare to yours. Don’t rely strictly on square footage when you look at comps. You need to know details about how the home is laid out, what features are inside, and any upgrades to get an accurate idea of price.
  • The person who buys your home is going to have a mortgage in most cases. That means that your home’s appraised value must be at least the sales price. Keep this in mind when you are setting your price, so you don’t price your home too high. If the appraisal comes in lower than the sales price, the buyer won’t be able to get a loan for that amount.
  • Start with the right price. Unless you are in a really hot market with very low inventory, you will just end up lowering the price on your house, which will send a signal to buyers that it was overpriced. Likewise, pricing your home under market value to encourage multiple bids can backfire, if there is a lot of inventory or homes are not selling fast in your area.

The most important step in pricing your home is to talk to your real estate agent. A qualified real estate professional knows what’s going on in your neighborhood and can advise you on the best pricing strategy for your home.

Are you ready to sell your home? If so, contact me today. I’ll give you a market analysis to determine the value your home, so you can be sure to price it right for the local market.

 

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 by mohamed Hassan from Pixabay