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Best Things to do in Incline Village, NV
Incline Village, just seconds over the order from Lake Tahoe, is known as the ultimate playground for people of all ages. As a result, the list of the best things to do in Incline Village is nearly endless. Here, we’ll try to break it down so visitors can maximize their time and enjoyment of our beautiful area!
Skiing/Snowboarding
Incline Village is long known as a winter mecca because there’s never a shortage of wintertime things to do in Incline Village! Whether you prefer skiing, snowboarding, tubing, or just sitting by the fire with a beverage, you’ll find your happiness here.
Incline Village has more ski resorts within a 100-mile radius than anywhere else in the US. You’re sure to find a favorite, among the following:
- Sierra-at-Tahoe Resort
- Heavenly Mountain Resort
- Kirkwood Mountain Resort
- Powder House Rainbow Mountain
- Alpine Meadows at Palisades Tahoe
- Boreal Ski Resort
- Diamond Peak Ski Resort
- Donner Ski Ranch
- Granlibakken Ski Area
- Homewood Ski Resort
- Mt. Rose Ski Resort
- Northstar at Tahoe Ski Resort
- Soda Springs Ski Resort
- Sugar Bowl Ski Resort
Golfing
While typically regarded as a winter destination, many people don’t realize the wide variety of summer activities in Incline Village, too!
Whether you choose a relaxing walks around the lake, to invigorating mountain biking, or lively water sports, there’s something for everyone here.
While you enjoy a challenging game with your best buds or new friends, also take in the stunning mountain peaks behind you. Whether you’re a beginner or a seasoned pro, there’s a course for you. They include:
- Genoa Lakes Golf Course
- Lake Tahoe Golf Course
- Edgewood Tahoe Golf Course
- Tahoe Paradise Golf Course
- Bijou Municipal Golf Course
- Carson Valley Golf
- Northstar Golf Course
- Resort at Squaw Valley Golf Course
- Old Greenwood Golf Course
- Gray’s Crossing Golf Course
- Old Brockway Golf Course
Hiking/Biking
Is enjoying the scenery one of your favorite things to do in Incline Village? Ours, too! What better way to get to know an area than by taking in its natural scenery? As far as scenic vistas go, you won’t find much better than the Incline Village area. As a matter of fact, from towering peaks to a sparkling lake, to groves of pine-scented trees, it doesn’t get any better.
A few of the most popular hiking trails include:
- Frog Lake, Winnemucca & Round Top. This one is great for kids, with its one mile hike from Carson Pass near South Lake Tahoe. If your kids are older or more experienced hikers, add another 1.5 miles up to up to Winnemucca Lake.
- Spooner Lake Loop is a well-maintained and gentle 2.1 mile loop, which follows the lake and provides lovely views.
- Tahoe Meadows Interpretive Loop is one of the few trails to welcome handicapped visitors and is flat and gentle. It passes through granite boulders, pines and streams and offers views of the mountains and the lake.
- Loch Leven Lakes Trail is a little more challenging, but the payoff is worth it. The 8-mile round trip hike requires a full day and offers swimming holes along the way.
Is mountain biking one of your favorite things to do in Incline Village? You’ll love the following biking paths:
- Tahoe City to Sugar Pine Point is great for families and more casual bikers. It’s 9 miles long and runs along the west side of the lake.
- Pope to Baldwin Beach Bike Path is a 4-mile path that goes past Camp Richardson, Tallac Historical Site, and Fallen Leaf Lake.
- The Triangle is for more experienced cyclists, at 75 miles long along highway shoulders and some paths. It begins in Truckee and heads south on Hwy. 89 into Tahoe City.
- The Power Line Trail is a great bike trail for beginners. It’s 7 miles long and traverses pine forests and creeks. Flat and easy, it connects to other trails.
Boating/Fishing
If boating and fishing is on your list of favorites things to do, you’ll love it here! The area is home to a wide variety of fish, including lake, brown, and rainbow trout and salmon. Most fish caught her are wild, making them far more desirable than hatchery fish. They are also more challenging! Here are some of the most popular fishing holes:
- Truckee River – West Shore Lake Tahoe
- East & West Carson Rivers
- Boca & Stampede Reservoirs – North Lake Tahoe
- Caples Lake – South Lake Tahoe
- Donner Lake – North Lake Tahoe
Gaming
In thinking about your favorite things to do in Incline Village, you might not think of gaming. In fact, you might not even know it’s available! However, Incline Village is right on the border of Nevada and the area is home to a multitude of casinos. Whether your game is slots, craps, cards, or any combination thereof, you’ll love the casino action here! Some of the most popular area casinos include:
- Hyatt Resort and Casino
- Montbleu Resort and Casino
- Harrah’s Lake Tahoe
- Crystal Bay Casino
- Biltmore Lodge and Casino
- Lucky Beaver
Breweries
Do you love a small-batch craft beer? Perhaps an ale, a lager, an IPA, or even a stout? You’re in the right place! The Incline Village area has turned into a beer-lovers paradise, with a lively craft-brew scene. You’ll find that checking out the local breweries might just become your favorite thing to do in Incline Village. Check out a few of the following:
- South of North Brewery
- South Lake Brewing Company
- Sidellis Lake Tahoe
- Bear Belly Brewing Company
- Alibi Ale Works
Tours
What’s a vacation without touring some of the local sites? With the unique and beautiful scenery to explore, be sure to set aside time to enjoy the riches of nature. Here are some of the most popular tours to get you started:
- Tahoe Adventure Company offers full day tours of the entire area. Adventure enthusiasts can choose between kayaking, mountain biking, rock climbing, and snowshoeing. Looking for a little something different? Book the full-moon and star tour snowshoeing adventures.
- Camp Richardson Corral and Pack Station offers good ol’ fashioned horseback rides, wagon rides, steak and barbecue dinner rides and backcountry pack trips. Get in touch with your inner pioneer!
- Tahoe Photographic Tours with a seasoned photographer will show you a Lake Tahoe you’ve never seen before.
- Tahoe Balloon Company for a truly unique and memorable experience, book a hot air balloon ride with the Tahoe Balloon Company. You’ll be talking about it for years!
Our Very Favorite Thing to do in Incline Village: Dining!
Who doesn’t love a good meal? With all the truly incredible restaurants in the area, you’ll find that dining out is at the very top of your best things to do in Incline Village. Here are some of our favorites:
- The Lake House Restaurant
- Bert’s Cafe
- Cafe Fiore
- Scusa Italian Ristorante
- Edgewood Restaurant
- Sprouts Cafe
- Christy Hill
Shopping
What are some of your favorite things to do in Incline Village? By and large, we know one of ours is always shopping! And above all, we always in locally owned shops with interesting and unique merchandise. Accordingly, here is the comprehensive list of all the great shops and boutiques in Lake Tahoe:
You’re welcome!
Accommodations
What’s one of the most important decisions you’ll make for your Incline Village vacation? Where to lay your head at night! And we’ve got many beautiful properties to choose from, whether you’re planning a romantic visit, a friend’s getaway, or a family vacation. Check out our vacation homes!
What’s the best part of vacation? Eating out, of course! And to assist in your gastronomic pursuits, we’ve put together this handy-dandy guide to Pebble Beach restaurants. With this guidance, you’ll always be able to find the perfect spot quickly.
Bon appetit!
Pebble Beach Restaurants Featuring Cheap Eats
Sometimes, all you want is to grab a quick snack or an easy meal. After all, you’ve got places to go and things to do! Here in Pebble Beach, you’ll find a wide variety of dishes available to suit an on-the-go meal. And they’re all delicious!
What’s better than a yummy breakfast out? As far as we’re concerned, not much! You’ll have a great experience at LouLou’s Griddle in the Middle. And its delicious food has been featured on Guy Fieri’s Diners, Drive-Ins, & Dives!
How does chips, guac, and a burrito sound? And afterwards, maybe some fried ice cream? Yes, we thought so, too! Make a stop at Michael’s Grill & Taqueria, and you’ll leave full and satisfied. And maybe ready for a nap!
When nothing but broccoli chicken, Szechuan beef, or braised tofu w/veggies will do, stop in at Tommy’s Wok. In addition to these perennial favorites, you can also choose some delicious Dim Sum.
An Everything bagel with cream cheese and lox. Is your mouth watering?? Of course it is! And it can be yours at The Bagel Kitchen. So drop by and pick up a sandwich, or better yet, a dozen bagels to share with the group.
Casual Dining in Pebble Beach Restaurants
Looking for a casual meal in a Pebble Beach restaurant? If that’s what you’re after, then we’ve got some great suggestions for you!
Some days, you just want a nice meal without any fuss. Especially without having to get dressed up and know which fork is which!
We hear you! And by all means, we get it. So, here’s a list of a few different restaurants the represent a cross-section of most people’s favorite foods.
The Pangea Grill is a highly-regarded Asian Fusion restaurant in Carmel. Best yet, they’re open for breakfast, lunch, and dinner!
How does a calamari appetizer sound? Followed by an entree of lobster ravioli? And afterward, finished with a delicious tiramisu? If that sounds like heaven, you’ll want to float on over to Bistro Giovanni in Carmel.
Welcome to Carmel’s own version of Cheers! Brophy’s Tavern is where old and new friends gather for a pint and a burger. Because sometimes all you want to do is kick back and enjoy the game.
For a little taste of Europe right in northern Cali, you’ll definitely want to check out La Bicyclette. Despite its historic exterior, inside you’ll find all your favorite modern dishes exquisitely presented.
During your time in Pebble Beach, you must sample some of the local seafood. And there’s no better place to do that than at A.W. Shucks Cocktail & Oyster Bar.
Moderate Restaurants in Pebble Beach
Sometimes, you want to enjoy a nice dinner out, but don’t want to break the bank. We understand! Whether you want romantic Italian or lively Mediterranean, we’ve got great suggestions for you!
And speaking of Italian, Pèppoli at Pebble Beach Resort is a great choice for your night out. With so many delicious entrees on the menu, you may have a hard time deciding. Even so, the Gnocchi Di Ricotta and Bistecchina look especially mouth-watering!
Do you love a delectable Salmon Papardelle? Or perhaps a savory Pasta Puttanesca. And of course, no meal is complete without a Creme Brulee or Grand Marnier Souffle. Before you miss out, head on over to Fandango Restaurant!
Of course, you cannot leave the area without first tasting the area’s freshest and finest seafood! Accordingly, you don’t want to miss the Flying Fish Grill. With menu offerings such as rare peppered Ahi, Yin-Yan Salmon, and Seafood Pasta, it will undoubtedly be a difficult choice!
Sometimes, nothing satisfied like a good, aged cut of beef. When that’s what you’re craving, head over to The Tap Room. You’ll dine on delights such as filet mignon, porterhouse, and New York steak.
Pebble Beach Fine Dining Restaurants
Are you celebrating a special occasion? Engagement, anniversary, a new job, or a big move? If so, treat yourself to a fine dining experience at one of our local favorites.
Enjoy a taste of the Hawaiian islands at Roy’s at Pebble Beach. World-renowned chef Roy Yamaguchi serves up his uniquely delicious spin on Hawaiian Asian fusion. After a meal here, your taste buds will be singing!
If you’re looking for something just a bit less exotic, you’ll love The Bench. Here, you’ll dine in an open-air atmosphere, with delightful dishes such as Berkshire Bone-In Pork Chops and Grilled Swordfish.
If you’re celebrating a romantic occasion, then you’ll love the atmosphere at Anton & Michel. During your visit there, you’ll dine on the likes of Pan-Seared Steelhead Trout and American Kobe Beef Short Ribs. Be sure to leave room for dessert, with a Caramel & Sea Salt Crème Brulée or Chocolate Truffle Torte – raspberry coulis.
Stay with JZ Vacation Rentals in Pebble Beach
When you’re done exploring the restaurants in Pebble Beach, don’t forget the most important thing of all! Of course, that’s the ideal place to lay your head at night. Also to sip your coffee in the morning. And, of course, to relax with loved ones in the evening. JZ Vacation Rentals has a wide variety of vacation properties available in the Pebble Beach area. One is sure to fit your needs!
Though it’s known as a golfer’s paradise, there’s plenty to do in Pebble Beach. There’s something for everyone to do! Enjoy the outdoors, browse art and antiques, eat fresh, delicious food, or shop at one-of-a-kind boutiques.
Traverse the Iconic 17-Mile Drive
The 17-Mile Drive is one of the most beloved things to do in Pebble Beach. As one of the most scenic routes in the US, you’ll be treated to some truly magnificent views. When you enter the red-dotted line of 17-Mile Drive, be prepared to be awed by mesmerizing vistas of seas and cliffs, powder-white beaches, otherworldly forests, and world-renowned golf courses.
Be sure to stop and admire the 250-year-old Lone Cypress, the most photographed tree in America. The towering trees at Crocker Grove will spark your imagination. The untouched Fanshell Beach will make you feel like you’ve stumbled upon a delicious secret. Be sure to stroll the boardwalk at Spanish Point.
Cannery Row and the Monterey Bay Aquarium
Every “Best Things to do in Pebble Beach” list includes a trip to Cannery Row/Monterey Bay Museum!
It was once a “rough-and-tumble” area of canning factories on a waterfront street bordering Pacific Grove. John Steinbeck’s novel of the same name breathed new life into a once “colorful” piece of the area’s history.
It is now a premier destination featuring delicious eateries, shops and boutiques for all interests. Also, fun activities for the whole family, a variety of accommodations, and of course, its most important attraction, the Monterey Bay Aquarium.
The Monterey Bay Aquarium is a non-profit organization known for its focus on the marine habitats of the local area, it was the first aquarium to feature a living kelp forest on its opening in 1984. Today, the aquarium hosts more than two million visitors and features a vast array of programs and activities for marine enthusiasts of all ages.
Shopping in Carmel-by-the-Sea
A little retail therapy is always on the menu of best things to do! A treasure trove of independent shops, it’s easy to lose an afternoon or two wandering around this delightful city by the sea. Here are some of our favorites:
Ms Fabulous – fashionable clothes that won’t break the bank because let’s face it, we could all use a little more fabulousness!
Mission Jewelry – one-of-a-kind pieces to treasure as a memento of your vacation.
The Cheese Shop – because what says vacation better than a melt-in-your-mouth block of cheese and a beautifully paired wine?
Diggidy Dog – because whose doggo doesn’t hold the biggest place in their hearts?
Cafe Carmel – is there ever a bad time for coffee and a treat?
Visit Vineyards and Tasting Rooms
A visit to the area vineyards simply must be on your list of things to do in the Pebble Beach area. Well-known for its viticulture, your visit could not be complete without going to a couple of the area’s favorite wineries. In no particular order, here are our picks:
Windy Oaks Carmel Tasting Room
Hike at Point Lobos or Big Sur
You’ll feel like you’re in a children’s fairy tale as Point Lobos leads you through the thick groves of a Cypress forest. The path leads you to hidden coves and beaches, and your eyes will marvel at the azure and emerald Pacific Ocean.
For possibly an even more dramatic landscape, take the drive along the coast to Big Sur, taking in the scenery as magnificent as you’ve seen, heard, and read. Meander along the hiking trails at Andrew Molera State Park and Julia Pfeiffer Burns State Park before enjoying a meal at one of the hillside restaurants with mesmerizing ocean views, such as Nepenthe, Big Sur River Inn, or the Post Ranch Inn.
Golf is Always one of the Best Things to do in Pebble Beach
Of course, no mention of the best things to do in Pebble Beach could be complete without golf! Pebble Beach Golf Links has been consistently rated as the #1 golf course in the country and best of all, it’s open to the public!
Of course, if you’d rather not pay the $595 greens fee, there are alternatives in the area. Check out:
Spyglass Hill Golf Course – while still part of the Pebble Beach Golf Links family of courses, greens fees are somewhat less expensive.
The Hay – is a 9-hole short course, perfect for a busy day.
Poppy Hills Golf Course is not associated with Pebble Beach Golf Links
Whale Watching Tours
There’s little more exciting than catching a glimpse of wildlife in its natural habitat, particularly when that wildlife is as rare and majestic as a whale. Relatively few people in the world have had the privilege of this incredible sight. If you’d like to count yourself among that exclusive club, be sure to book one of the area year-round whale watching tours, such as the following:
Oceanic Expeditions Whale Watch
Looking for a place to stay on your adventure in the Pebble Beach area? Check out our selection of vacation rental homes to find the perfect accommodations for your family or group!
Best Places to Invest in STRs
You’re ready to start your journey into investments. You know you want to start with short-term or vacation rentals. The question is: Where are the best places to invest in STRs?
There’s truly no simple answer to this, because so many different areas of the US have excellent attributes as short-term rentals. However, just to narrow it down, we used the following criteria:
Rental Demand
As the name implies, rental demand simply means that a lot of people want to vacation in the area and demand for short-term housing is great. This factor is quantified through TTM (trailing twelve months) revenue and the strength of rental demand year over year.
Revenue Growth
In determining the best places to invest in STRs, one of the most important factors to look at is the growth of revenue. Are area properties earning more dollars per bedroom year over year? It’s vital to choose an area that sees continual growth.
Investability
This qualifier is a comparison between the cost of acquiring the property vs. the revenue it will generate. This criterion is determined by examining the average rental values and operational costs in a neighborhood or region.
So, where are the magical places where these three factors all line up to provide the best places to invest in STRs? Right here:
Maui, HI
A perennial favorite, certain areas of Maui, such as the historical district of Lahaina and Wailuku enjoy an impressive 73% occupancy rate and average nightly rate of $375. Even better is the annual average revenue of over $100k. So, what’s the downside? With an average home price of $802k, it might be out of reach for first-time investors.
Chattanooga, TN
Hikers and outdoors enthusiasts flock to Chattanooga, for both the Appalachian mountains and the Tennessee River. This enthusiasm is borne out through an impressive year-round occupancy rate of 70%. While the $47k annual revenue certainly isn’t as impressive as Maui’s $100k, the average home price of less than $250k takes some of the sting out.
Gulfport/Biloxi, MS
Again, not a particularly surprising choice, but still a great option. With a low average unit price (just $155k!), the $44k in average revenue is very appealing. Not surprisingly in this warm, southern city with a multitude of diverse activities available, the year-round occupancy rate stays steady at about 70%. Do keep in mind that Gulfport/Biloxi is right in the hurricane belt.
Crystal River, FL
This may be a surprising choice. It’s not in the Disney area, nor is it ocean or gulf-front. However, it is the “Manatee Capital of the World” and near both Kings Bay and several wildlife refuges. It will only attract a certain demographic of visitors, but it attracts them strongly. With $51k average revenue, nearly 70% occupancy and a $249k average home price, Crystal River is a solid choice.
Joshua Tree, CA
Some people just like the desert! Located within the Mojave and just outside the entrance to Joshua Tree National Park, this area enjoys an impressive annual revenue of $85k, with an average property value of about $340k. At about 65%, occupancy rates are not quite as high as some on this list, but that doesn’t stop Joshua Tree from being a favorite among STRs.
Charleston, SC
What list of the best places to invest in STRs could be complete without Charleston? The quintessential genteel southern city, Charleston has it all, including an average daily rental rate of close to $400, average annual revenue of about $85k. The only downfall is the high average home purchase price of over $500k.
Brookings, OR
While this location is not as well known as the previous two, it has plenty to offer, including some great rental numbers. Called one of the best stops on the Oregon coast, Brookings is known for its mild year-round climate, scenic views, and myriad recreational activities. With average occupancy almost 75%, average annual revenue at almost $70k and an average home price of just under $460k, this is another solid choice.
Helen, GA
Perhaps the most unusual stop on the list, Helen, GA is reminiscent of a Bavarian village with its distinctive architecture. It’s a popular stop amongst the Eastern TN/Northern GA/Western NC crowd and its charm makes it easy to see why. With occupancy over 60%, annual revenue almost $50k, and home prices hovering around $200k, it’s an easy choice.
While there are many best places to invest in STRs throughout the US, we hope this list has given you a good head start.
If you have any questions or would like further information, please reach out to us. We’d love to chat!
Creative Financing Options
Looking to purchase an investment property, but you keep hitting roadblocks when it comes to financing the purchase? There may be more options than you’re aware of. In this post, we’re going to talk about some creative financing options for the purchase of your investment property that can bust through that roadblock and set you on the path to real estate wealth.
First, what is creative financing? It sounds kind of shady, right? Well, it’s not. Creative financing is simply thinking outside of the typical mortgage box when it comes to how to purchase your investment property. It’s just doing things a little differently to achieve the same goal.
Here are some of the top creative financing options and how you can use them in your real estate investing journey.
Owner Financing
Pretty self-explanatory. This creative financing option is simply having the original owner of the property (or at least the owner you’re purchasing it from) hold the mortgage note for you. Feeling unsure of your ability to secure a loan? Or perhaps you think you can negotiate better terms with an individual rather than a corporate entity? This may be a great option. And don’t feel awkward asking! As the old saying goes, “If you never ask, the answer is always no.” A couple of things to keep in mind:
- The owner must own the property outright.
- This option tends to work out best if the owner is motivated.
Here’s some more information about owner financing.
Installment Contract
(Aka contract for deed, installment purchase contract, installment land contract, or bond for deed)
Have an owner intrigued by owner financing, but still wary? Offer an installment contract. This creative financing option allows the original owner to retain ownership of the property until you pay off the loan balance in full.
Since this is an agreement between you and the property owner, you can structure it any way that suits you both. Just be sure to record the contract for deed with your local land records to protect yourself against any possible future shenanigans. Always better safe than sorry.
Here’s a more in-depth look at installment contracts.
Hard Money
A hard money loan is a creative financing option in which a private investor loans you money for a real estate purchase using the property as collateral. Typically, this loan is used when the would-be investor (you) doesn’t have enough time to go through more traditional channels to secure financing, such as a multiple-offer scenario. They can also be used as a sort of bridge loan until the investor (you) is able to secure traditional financing.
This is a good option if your credit is less than stellar, as private investors don’t usually go over your finances with the same fine-tooth comb that banks and other lending institutions do.
The downside is that this is an expensive alternative. In 2020, the average interest rate for a hard-money loan was 11.25%.
Looking for more detailed information? Read this article.
Cross Collateralization as a Creative Financing Option
This creative financing option allows you to use the equity you have in another property to eliminate the need for a downpayment in the new investment property.
The way this works is that the lender takes first lien position on the new investment property and second lien position on your existing property.
Some people think it’s a better option than a HELOC or a second mortgage because you don’t have to pay closing costs on the loan.
Others point out the caveats: You have to have significant equity in your first property for this to work. Plus, it’s risky. If, for some reason, you can’t pay the loan, you risk losing two properties instead of just one.
Want to know more about cross collateralization? Check out this article.
Another Creative Financing Option: Borrow Against Your 401(k)
Now, you can’t use your 401(k) specifically to invest in real estate, but you can borrow against it. Generally speaking, you can borrow 50% of your balance, up to a maximum of $50,000, though be aware that some 401(k) administrators don’t allow loans at all.
The great news about 401(k) loans is that they come with low interest rates, though they do also charge fees. The terrible news is that you’re borrowing from your own retirement funds. If anything happens, it’s your financial future hanging in the balance.
Here’s some more information about borrowing from your 401(k).
Economic Development Grant
If you’re looking to invest in a traditionally low-income area, government funding might be an option for you. In trying to add jobs and stable housing to economically challenged neighborhoods, the state and federal government may offer grants and/or other technical assistance to investors and developers.
While this is a great option for a specific set of investors, be aware that these grants don’t cover all or even the majority of financing needed. Plus, they can take several weeks to review and acceptance is not guaranteed.
But if this is where your heart is, it’s a good option. More information here.
Private Notes
If you have a good track record and know the right people, private notes can be a great creative financing option for you.
Private loans are made by individuals, not banks, and they are usually people you know who know your background and trust your track record enough to entrust you with their own personal funds.
This option is for seasoned investors who know the ropes and have already made their rookie mistakes. The upside is that everything is up for negotiation and private notes can typically be funded very quickly. The downside is if the deal goes sideways, you’ve lost the money of someone you have a personal relationship with and that can get really sticky, really fast.
Peer-to-Peer Loans
This last creative financing option is worth mentioning. Peer to peer loans are a form of personal loans, targeted to those who have less than great credit. Because of their potentially astronomic interest rates, some may think of them as loans of last resort, but if there’s nowhere else to turn and you really want to get a deal done, this could be an option for you.
Here’s a primer to help you decide if this is the right route for you.
I hope this information has been useful! If there’s anything I can personally help with, please don’t hesitate to get in touch.
Mortgage Loans for Investment Properties
In this blog post, we’re going to take a look at the different types of mortgage loans for investment properties. While many are the same or similar to the loan you take out for your principal residence, there are differences.
So, you’ve decided to purchase an investment property. Great!
Do you have cash in hand? If not, how are you going to finance it?
There are actually many options to finance your investment property. But there are also more stringent guidelines than for a primary residence. Because investors can easily walk away from an investment property, lenders assume a bigger risk with financing these properties.
To mitigate that risk further, lenders impose a variety of rules that govern the lending of investment property monies. Some of these include:
- Higher down payment, typically a minimum of 20%.
- Higher interest rates and fees.
- Cash reserves for 6 months of mortgage payments
- Property must be a single-family home, small multi-family home, townhome, or condominium
Let’s examine the different types of mortgage loans for investment properties.
Conventional Loan
Also called “conforming loans”, this type of mortgage loan for investment properties is offered by traditional lenders, such as banks and mortgage brokers. While these types of loans typically offer a lower interest rate and fees, down payments are typically between 15% and 25%. They are guaranteed by either Fannie Mae (FNMA) or Freddie Mac (FHLMC) and must meet Government Sponsored Enterprise (GSE) guidelines.
FHA Multi-Unit Financing
With this type of mortgage loan for investment properties, the borrower must live in one of the units for a minimum of one year and may use the existing rental income to help qualify for the loan. This is a good loan product for new purchases or properties that need substantial rehabilitation. It is backed by the FHA and offered by traditional lenders and mortgage brokers. Its down payment and credit score requirements are more lenient than conventional loans.
VA Multi-Unit Financing
Also offered by mortgage brokers and traditional lenders, this type of financing option is only available to active-duty service members, veterans, and eligible spouses and is backed by the US Department of Veterans Affairs (VA). It has no minimum downpayment or credit score restrictions and may be used to purchase up to 7 units. The borrower must live in one of the units.
Blanket Mortgage Loans
Under this type of mortgage loan for investment properties, borrowers are able to finance multiple properties under one loan. Offered by private lenders and mortgage brokers, this product has varied downpayment, credit scores, interest rate, and loan terms based on the lender and the properties being mortgaged. There are a few interesting differences between the Blanket Mortgage Loan and the other we’ve discussed so far:
- With a Blanket Mortgage loan, the properties covered under the loan are “cross-collateralized”, meaning each property serves as collateral for the others
- It is possible to refinance existing separate mortgage loans under one Blanket Mortgage
- It is possible to negotiate a “release” clause, which allows the borrower to sell just one (or more) of the properties covered under the loan
Portfolio Loans
This type of loan could be considered “creative financing”. Offered by private lenders and mortgage brokers, it is used to finance single or multiple investment properties with the same lender. The downpayment, credit score, interest rate, and loan terms can be customized at the discretion of the lender to fit the needs of the buyer. However, less stringest terms comes at the cost of higher fees and prepayment penalties. Lender may also choose to offer financing using only a short-term loan product, and stipulate that a balloon payment for the entire loan is due at the end of the loan term.
Private Money Loans
As its name implies, private money mortgage loans for investment properties are mortgage funds loaned by private investors or groups. Loan terms may be customized per the borrower’s individual needs, which makes this a good source for future funding based on assets’ current performance. Some borrowers ask for a “piece of the action” in exchange for a lower interest rate or better terms.
HELOC and Home Equity Loans
This is not a traditional mortgage loan, but rather tapping into the equity you’ve already accumulated in your existing property. Your lender will typically lend about 80% of the property’s equity. This is a type of second mortgage, with funds paid in a lump sum. Repayment made in monthly payments at fixed rate of interest.
Seller Financing
This final type of mortgage loan for investment properties is also called seller carryback, owner financing, or a purchase-money mortgage. In this scenario, the original owner already owns the property free of any loans, acts as the lender for the buyer and “finances” the sale of the property. This is an excellent way to finance a property that will not qualify for traditional financing or in a market downturn. It offers nearly endless flexibility and can be easily customized to meet the needs of the seller and buyer. This option is also occasionally used by sellers as a way to capital gains as an alternative to conducting a 1031 tax-deferred exchange.
In the next post in this series, we’ll be discussing more unconventional and creative ways to finance your investment property. Stay tuned!
I hope this overview of 8 popular products for mortgage loans for investment properties gives you an informative overview of what’s out there and gets you thinking about what might be the best vehicle for you in your future investing.
As always, please feel free to reach out if you have any questions. Thanks for reading!
Learning Real Estate Investing
The first book on investing I ever read was “Rich Dad, Poor Dad” by Robert Kiyosaki and it changed the way I think about money. What he teaches is that money is supposed to work for you, not the other way around. This is a confusing time for real estate investing, but with a few basic ground rules, you’ll soon have it mastered!
And I can think of no better way to make your money work for you than by investing in real estate.
Though I know it’s gotten a little tricky lately. The real estate market has become challenging and unpredictable. Up until the last couple of weeks (as of 6/27/22), home prices were appreciating at an unprecedented rate of more than 20%. Plus, mortgage rates are up.
Real estate investors are probably wondering if they should sell while prices are still high. And would-be investors are wondering if they should wait on purchases to see what the market will do.
Well, I can tell you this: With just one exception in the last 100 years, real estate values have consistently appreciated, making it one of the most stable investments you can make. And this is regardless of the present state of the market, both in your personal region and nationwide.
In the past two years, property values have soared more than 20% and while the market is forecast to stabilize, the good news is that it’s not projected to fall backwards as it did in 2008. The mortgage industry learned its lesson with unsustainable mortgage products.
Real Estate Investing is Not All About Cash Flow
My advice is, if it’s at all possible, just hold on to your property. Yes, if you’ve owned a real estate investment property for more than the last two years, it’s really tempting to just cash out and count your profit, especially given these huge appreciation numbers. But here’s the thing: once you sell, the profit, if you don’t reinvest, is just water flowing down a drain. It’s no longer working for you.
I think that some investors only look at cash flow numbers when deciding whether to sell or hold. But that’s not the whole picture. While cash flow is the number of dollars hitting your bank account each month, there’s a lot more going on behind the scenes that’s also building you wealth.
Let’s say your property is in a short-term vacation rental pool. You have your property manager do a summary for you to help you make a decision to either hold or sell.
This is what he comes up with (for the sake of simplicity, we’re going to use round numbers and consolidate like-type expenses):
Property X | ||
Purchase Price | 500000 | |
Gross Rental Income | 70000 | |
Total Operating Expenses | (25000) | |
Property Taxes | (2500) | |
Insurance | (1250) | |
Net Operating Income | 41250 | |
Annual Loan Payments | 24000 | |
Annual Cash Flow | 17250 | |
Monthly Cash Flow | 1437.50 |
Additional “Hidden” Sources of Real Estate Investment Cash Flow
When you have a $400k mortgage and a $2k per month payment, this number may be discouraging. But here are the additional “hidden” numbers that you should also be considering before you make a final decision, as they can significantly change how you understand the value of your real estate investment property:
Appreciation: While the numbers have been crazy high for the last year or two, we’re going to project low, just for the sake of this example.
Principal Reduction: Every time you make a mortgage payment, you are reducing the principal owed on the loan, which is money back to you. Again, simply using round numbers.
Tax Depreciation: No, this doesn’t mean the value of your home is decreasing. It means the number you can write off on your taxes as capital expenses. It’s a fine distinction and your accountant performs a formula to determine this value. Again, round numbers.
Cash Flow After Expenses | 17250 |
Appreciation @ 5% | 25000 |
Principal Reduction | 12000 |
Tax Depreciation (what you can write off in capital expenses) | 10000 |
Annual Loss of Revenue from Liquidating | 64250 |
So, after you take into consideration what you’re really selling, you may want to think twice. One of my favorite resources to see these figures in real time for real properties to make it more “real” is www.roofstock.com. Check it out to gain a broader understanding.
Real Estate Investment Strategies
I frequently get questions from both current and future investors about the best strategy to employ with regard to real estate investments. I’d like to briefly touch on a few options.
Buy and Flip
In this model, investors purchase a property for below market value, typically in a distressed state. This can include deferred maintenance or some structural damage. The investor then makes the necessary repairs and/or updates to bring the property back to market standard. It is then listed at the appropriate increased value and the investor makes a profit on his efforts.
Buy and Hold
In this model, an investor purchases a property and then installs a tenant. This tenant’s rent pays the mortgage, while the investors enjoys the annual appreciation.
BRRR
This is actually a hybrid of both buy and flip and buy and hold, with another step and is the option I’d like to discuss in more depth today.
The acronym stands for Buy, Renovate, Refinance, Repeat. In this model, the real estate investor purchases a property, performs any deferred maintenance or repairs any structural/functional issues. The next step is to rent it out, whether as a short-term or long-term rental for a pre-determined period of time.
When that period of time is up (typically several years), the investor then refinances the property, cashes out the equity, and starts the process all over again.
Example of Real Estate Investing with BRRR
I’d like to provide an illustration of what happens when you sell a property vs. when you access the equity to continue building more equity over time.
We’ll start with a real estate investment property with an appraised value of $500k. For the sake of simplicity, we’ll say that the original purchase price and the current appraised value are the same.
Sale | Cash Out Refinance | ||
Appraised Value | 500,000 | 400,000 (80% LTV) | |
Remaining downpayment | 100,000 (must keep original 20% down) | ||
Outstanding Loan | 250,000 | Outstanding loan | 250,000 |
Real Estate Commission (6%) | 30,000 | No sale = no commission | N/A |
Closing Costs | 5,000 | 4,000 | |
Proceeds Before Taxes | 215,000 | Equity to cash out for next investment | 146,000 |
Tax Burden (assuming 25%) | 53,750 | No Tax Burden | N/A |
Total Net | 161,250 | Total Available for next investment | 146,000 |
Next is where it gets really exciting. So, once you’ve cashed out your equity, you use that money to purchase another investment property (hence the last “R” for “repeat”). Here’s what that looks like:
Property Y | |
Purchase Price | 600000 |
20% Down Payment | 120000 |
4% Closing Costs | 24000 |
5% Equity Growth | 30000 |
Tax Depreciation | 12000 |
Principal Reduction | 14000 |
Cash Flow | 20000 |
Income From First Property | 64250 |
1 Year Income/Equity | 84250 |
5 Year Income/Equity | 421250 |
While all the numbers used in our examples are highly speculative and not based in fact, they still provide an excellent example of how quickly real estate investments can create wealth.
Bear in mind that with only one exception in the past 100+ years, real estate is the only investment that reliably and consistently appreciates over time. It is worth investigation and consideration in building your own portfolio.
I hope this has been helpful to you. I will be providing additional real estate investment resources in the coming weeks and months and invite you to reach out if you have any specific questions.
Is Real Estate Investment Still A Viable Investment Strategy?
According to S&P CoreLogic Case-Shiller US National Home Price Index, home prices increased by 18.8% in 2021.
Zillow is predicting an overall 17.3% gain in 2022.
Real estate is a time-honored and tested investment. These unprecedented numbers have left investors and potential investors questioning their strategies. Is real estate still the same path to wealth that it always has been?
I think it is. Real estate is still forecast to continue appreciating. With interest rates rising, some buyers will be forced out of the market. This may provide an opportunity for others to purchase property without the fierce competition we have been seeing in the recent past.
Even in this volatile market, real estate remains one of the most stable ways to acquire wealth in both the short and long terms.
Both my inspiration and my passion for real estate investment are thanks to the book Rich Dad, Poor Dad by Robert Kiyosaki. This was the game-changer for me. It challenged me to look at money in a completely different way. Instead of the traditional viewpoint of us working for money, Rich Dad, Poor Dad teaches that money is, instead, here to work for us.
If you have not yet read Rich Dad, Poor Dad, I highly recommend it.
While acknowledging that there are many paths to financial freedom, for the purposes of this discussion, we are going to focus on real estate. By defining various strategies, I hope that I am able to help in the planning and execution of your investment goals.
Pros and Cons of Real Estate Investment
Pros
- Real estate investments provide a regular income
- Property values continue to appreciate
- Real estate investment maximizes capital through leverage
- Investors have many tax-deductible associated expenses
Cons
- Property management can be challenging
- Tenants occasionally damage properties
- Occasional vacancies reduce income
New Home Sales Prices
According to U.S. Census Bureau data, new home sales prices (historically a rough indicator for real estate values) consistently increased in value from the 1960s to 2006, before dipping during the financial crisis. Subsequently, sales prices resumed their ascent, even surpassing pre-crisis levels. Since 2020, home prices have increased 35%, though the long-term effects of the coronavirus pandemic on real estate values remain to be seen.
My Story
In 2008, I purchased my first two-family investment property to use as both my primary residence and a rental property. I paid $140k. Over the next two years, I invested my own time, energy, and whatever monies I collected from the rental back into the property. I improved the overall quality, design, and amenities. In return, I was able to increase the rent from $850/mo. to $1,250/mo per unit over the course of 3 years. When I sold the property, I saw a 6 figure gain over what I had originally paid for it.
If you’d like to get an idea of what kind of income you might see from an investment property, check out our rental income calculator.
Real Estate Investment as a Hedge Against Inflation
Most investors view real estate as a hedge against inflation.
- Interest rates are climbing. A natural reaction is that there is a drop in both sellers putting their homes on the market and buyers clamoring to purchase a home. If fewer people are listing their homes to a smaller pool of potential buyers, prices typically decrease to accommodate the market climate.
- As demand drops and sales decrease, we typically see an inverse increase in renting. This keeps the leverage in the landlord’s court for deferring the rising cost to the tenants while reaping the reward of increased home values over the long term.
- Investors use real estate as a hedge against inflation by taking advantage of reasonable mortgage interest rates. They then pass rising costs on to tenants with higher rent prices, while benefiting from rising home values over the long term.
What is Your Exit Strategy?
It’s important to clearly define your exit strategy before you enter into any real estate contracts. Some of these strategies may include purchasing the property to renovate and sell for a profit (flipping), building new construction, wholesaling, or holding the property to collect rent.
To help you better understand these options, below is an in-depth discussion about flipping and wholesaling.
Flipping
- This is the purchase of a home with the sole intention of rehabbing and selling.
- Rehabbing typically takes anywhere between 60 days and 1 year.
- Most investors don’t factor a pandemic or a recession into their projected completion dates. This can cause unforeseen problems.
- If this happens, investors are left with the difficult choice of cutting losses and selling the unfinished property at a potential loss or converting their exit strategy to that of holding and renting.
Wholesaling
- This is a simultaneous purchase and sale arrangement in which the investor contracts with both a seller to purchase a property at below market value AND a buyer to purchase the same property at a profit.
Example:
A motivated seller agrees to sell a home for $100k. An investor agrees to purchase the home for this amount. The investor then markets the home to potential buyers and finds a buyer who will pay $110k. The investor may choose to either assign the contract to the new buyer OR remain on both contracts through the predetermined closing date.
On the closing date, the investor first signs the contract to purchase the property for 100K and then simultaneously signs the contract to sell at $110k, netting a profit of $10k without tapping credit or money.
Stay Tuned…
In our next installment of the Real Estate Investment blog series, we’ll be covering the principles of BRRR (Buy, Renovate, Refinance, Repeat).
Things to Do in Lake of the Ozarks
You made it! You’re at your beautiful vacation home by JZ Vacation Rentals. What’s next? Well, it’s time to find some things to do in Lake of the Ozarks!
There’s plenty to choose from! With activities as varied as water sports to museums to shopping, there’s something here that every member of your family will love.
Because being outdoors is always high on the list of things to do in Lake of the Ozarks, let’s start there.
Things to do Outdoors in Lake of the Ozarks
Caves
Did you know that Missouri is home to more than 6300 caves? And the area around Lake of the Ozarks has about 300 of ‘em! Here are some of the most popular:
Bridal Cave is arguably the most famous cave in the region, known for not just hosting weddings (3000+ to date!), but also for its fascinating formations, including massive columns, stalactites, stalagmites and draperies.
Jacob’s Cave is famous for its illusion of depth, reflecting pools, ceiling sponge-work, prehistoric animal skeletons (Mastadon, bear, and Peccary), and the world’s largest Geode.
Stark Caverns, like several of the other caves in the area, was once used by Native Americans. Later on, local settlers used it for both the storage of goods and the production of Moonshine. Stark Caverns boasts an underground lake and formations in addition to the fascinating rock formations.
Beaches
What’s a vacation in Lake of the Ozarks without a day (or three) at the beach? Here are a few of our top choice:
Public Beach #1 in the Lake of the Ozarks and
Grand Glaize Beach is sometimes referred to as Public Beach #2 and is also located at Lake of the Ozarks
Water Parks
Because after all, what good is a vacation without a wild trip down a slide at a waterpark?? Check out some of our favorites:
Hiking
Reading to lace up your hiking boots and hit the trails? According to AllTrails.com, here are some of your best bets:
- Rocky Top Trail | 2.2 miles | Easy
- Hidden Springs Trail | 2.5 miles | Moderate
- Lakeview Bend Trail | 1.5 miles | Easy
- Trail of the Four Winds – North Loop | 4.0 miles | Moderate
- Lake of the Ozarks State Park Lake Trail | 3.2 miles | Easy
State Parks
In addition to hiking, spending time outdoors in nature is always a balm for the soul! Be sure to visit our beautiful state parks, Ha Ha Tonka State Park and Lake of the Ozarks State Park, both of which offer many recreational opportunities, even if that means just sitting on the grass while enjoying a picnic!
The Aquatic Trail
The Lake of the Ozarks has a totally unique feature – the Aquatic Trail. This 9.75 mile self-guided trail provides boaters with a new perspective of the Lake of the Ozarks State Park as it’s viewed from the Lake. Each of the 14 stops are marked by an orange buoy.
Boating
Prefer just a leisurely trip around the lake? Perhaps you’re looking to do some fishing, waterskiing, or tubing. There are plenty of tour operators who will be glad to help you plan the day of your dreams!
Golf
With a dozen golf courses in the area, it won’t be hard to book your preferred tee time. Fore!
Shopping
And what would a list of things to do in Lake of the Ozarks be without a nod to the shopping in the area?
From furniture to toys, games and books, to hemp products, to clothes, you’ll find what you seek! The Lake of the Ozarks CVB has a great alphabetical listing of all the awesome shops in the area.
Dining
We absolutely could not make a list of things to do in Lake of the Ozarks without adding a few of our favorites restaurants.
Some of the best seafood on the lake is found at JB Hooks. Make sure to try their Alaskan King Crab Legs or Stock Yards Filet Mignon!
Craving some sweet-n-smoky St. Louis barbecue? Head over to Sweet Smoke BBQ and make sure to get the brisket.
Great Italian food is always on the list of favorites. When you’re craving a particularly good pizza, take the family over to PaPPo’s Pizzeria
For an absolutely delicious and unique breakfast, take a drive over to On The Rise Bakery & Bistro. You’ll love it!
While you’re here, you simply must enjoy at least one meal with a lake view. Let it be the Paradise Restaurant & Bar. It’s going to be hard to choose between so many mouth-watering starters, entrees, and desserts!
Are you one of those people always on the lookout for the perfect burrito? You’re bound to find it at Mama Cita’s Mexican Cantina.
Wineries
Did you expect that your list of things to do in Lake of the Ozarks would include a stop at a winery? Maybe you should have! We have many excellent options for an engaging or romantic evening out. Here are a few:
Golden Rock Winery
Spas
Sometimes, there’s nothing more important on the things to do in Lake of the Ozarks than pamper yourself. After all, it’s your vacation, too! Check out one our favorite spas and enjoy a relaxing massage, facial, or mani/pedi. You deserve it!
Spring Calendar of Events in St. Louis
Everyone knows about the arches, right? That’s what makes St. Louis famous. But there’s so much more to see and do! From hidden gems that only the “locals” (like Sterling K. Brown from This is Us) know about to other almost-as-famous attractions, this spring calendar of events will help you to discover OUR St. Louis!
March 20 – June 21 (well, March 31…)
Yes, we actually Googled it and in 2022, the dates of spring are March 20 through June 21. But we’re going to split it up, so you have another post to look forward to down the line. So, our spring calendar of events part 1 will run from March 20 through May 1.
We’ll present 3 different choices for each day from 3 different categories, and we’ll try to choose items that will appeal to wide range of ages and interests! If the event is ongoing, that will be noted. Click on any of the links for further information.
And Away We Go…
March 20
St. Louis Sound 10a-5p
Recurring Event – FREE
See STL: Central West End 10a
Recurring Event – $15 – $20
Visits with the Bunny – 10:30a-3p
Recurring Event – $15
March 21
Mind, Art, Experience: 10 Years of Chess & Culture in Saint Louis – 10a-5p
Recurring Event – FREE
St. Louis Riverfront Cruise – 12p-2p
Recurring Event – $14 – $24
Gerard Erker @ the Broadway Oyster Bar – 5p-7p
Recurring Event – FREE
March 22
Beyond Van Gogh: The Immersive Experience – 10a-9p
Recurring Event – $25 – $94
Trivia Night @ ALOFT – 6p-8p
Recurring Event
The 39 Steps – Repertory Theatre St. Louis – 7p
Recurring Event
March 23
The Nature of Things – 10a-5p
Recurring Event – FREE
My Fair Lady @ The Fabulous Fox Theater – 7:30p
Recurring Event
Graham Nash – 7p
One-Time Event – $42.50 & $52.50
March 24
Thursday Nights at the Museum – 5:30p-8p
Recurring Event – FREE
Sittin’ On the Porch Jam – 6p-9p
Recurring Event – FREE
St. Louis Blues vs. Philadelphia Flyers – 7p
One-Time Event – tickets start at $25
March 25
Schlafly Stout & Oyster Festival – 5p-9p
One-Time Event (also 3/26) – prices vary
Sesame Street Live! Let’s Party! – 1p
Recurring Event – tickets start at $20
David Sanborn – 7p
Recurring Event – $10 – $56
March 26
The Fabulous Fox Theatre Tour – 10a
Recurring Event – $10
Kids Day at National Blues Museum – 12p-4p
One-Time Event – FREE
St. Louis Blues vs. Carolina Hurricanes – 7p
One-Time Event – Tickets start at $60
March 27
See STL: Soulard North and LaSalle Park – 10a
Recurring Event – $15 – $20
Ethan Jones BROADWAY OYSTER BAR – 2p-5p
Recurring Event – FREE
Proof KIRKWOOD PERFORMING ARTS CENTER – 2p
Recurring Event – $15 – $50
March 28
Eric McSpadden & Margaret Bienchetta BROADWAY OYSTER BAR – 5p-7p
Recurring Event – FREE
St. Louis Blues vs. Vancouver Canucks ENTERPRISE CENTER – 6:30p
One-Time Event – Tickets from $26
Chamber Music Society of St. Louis – 7:30p
Recurring Event – $39
March 29
Beyond the Ballot – St. Louis and Suffrage – 10a-5p
Recurring Event – FREE
Impressionism and Beyond SAINT LOUIS ART MUSEUM – 10a-5p
Recurring Event – FREE
Baby Keem – 8p
One-Time Event – $30 – $45
March 30
Character Telephone Exhibit JEFFERSON BARRACKS TELEPHONE MUSEUM – 9a-2p
Recurring Event – FREE – $5
Elton John ENTERPRISE CENTER – 8p
One-Time Event – $66.50 – $221.50
Melissa Aldana JAZZ ST. LOUIS – 7:30p
Recurring Event – $10 – $36
March 31
Thursday Nights at the Museum MISSOURI HISTORY MUSEUM – 5:30p-8p
Recurring Event – FREE
Sittin’ On the Porch Jam NATIONAL BLUES MUSEUM – 6p-9p
Recurring Event – FREE
One Time Event – $30 – $35
Looking for the perfect accommodations while you’re making your way through the March Calendar of Events? Give JZ Vacation Rentals a call and we’ll hook you up!