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You might have heard of programs that promise to help you get rich quick through real estate investing. Unfortunately much of what they’re selling are high-risk tactics that aren’t a good fit for the average investor.

However, it’s possible to make steady, predictable, low-risk income by investing in real estate in Mammoth Lakes. Here are a few tried and true real estate investment tactics that can be used to increase your income.

Why invest in real estate?

The basic principle of real estate investment is that everyone needs a place to live. Housing is often the largest single expense for Americans. But there are other reasons why real estate is a great investment choice:

1. Appreciation

Appreciation is an increase in your property’s value over time. Over an extended period of time, the value of real estate rises. Of course, recessions occur, and market ups and downs are natural, especially in a ski town like Mammoth Lakes. But in the vast majority of markets, the value of real estate grows over the long term. While no investment is without risk, real estate is a pretty solid choice to invest in if you have a long timeline.

2. Hedge Against Inflation

Inflation is the rate at which the general cost of goods and services rises. As inflation happens, the money in your bank is essentially worthless because your purchasing power has decreased. But real estate prices also rise when inflation increases, so money invested in real estate often rises with (or exceeds) the rate of inflation.

3. Cash Flow

One of the benefits of investing in real estate over the stock market is its ability to provide monthly cash flow if you rent it out. Whether you rent it out as a nightly vacation rental or to a long term tenant, you’re likely to receive regular income. If you invest wisely, the income from rent or vacationers might cover the mortgage, the HOA and maybe even any repairs and maintenance needed.

If you end up with a little extra cash each month, you can pay off the mortgage faster. Even if you just break even, your equity will increase as you pay down the mortgage each month. Once the property is paid off, you’ll have residual cash flow for years to come. When the time comes to sell, you can benefit from the property’s appreciation — this can be a great way to save for your retirement or fund a child’s college education.

4. Leverage

A unique thing about real estate is that you can leverage your investment. If you purchase a condo in Mammoth Lakes for $200,000, you might put 10% down and borrow the rest in a mortgage. Even though you’ve only put in 10%, you have the ability to earn a profit on the entire $200,000. If the property appreciates, you still only have to pay the bank back the original amount, and if you sell it for a higher amount, you keep the profit.

5. Tax Advantages

One of the top reasons to invest in real estate is the tax benefit. There are many ways a real estate investment can save you money each year on taxes, including depreciation, serial home selling, 1031 tax exchanges and tax-deferred retirement accounts. Be sure to ask a tax professional about your current or future real estate investments.

Types of Real Estate Investments

While there are many ways to invest in real estate, I’m sharing three primary ways average investors earn money through real estate.

Remodel and Re-sell

There are countless “reality” shows that make fixing and flipping homes look easy. This is a higher-risk tactic, but there are tons of programs out there promising to have the magic formula. If you choose this process, you need to be prepared financially to cover additional expenses that may arise.

A good real estate agent can help you identify Mammoth Lakes properties that might be good for this type of investment strategy and help you avoid some of the pitfalls that could derail your plans. Keep in mind that skilled labor, contractors, construction professionals, etc. are harder to come by and often more expensive to hire in Mammoth Lakes than they are in more urban areas.

Traditional Long-Term Rental

A more conservative choice for investing in real estate is purchasing a long-term rental property. This is a way to generate cash flow that covers your expenses, while taking advantage of the property’s long-term appreciation value and the tax benefits. It’s a good way for first-time investors looking to get started.

Mammoth Lakes has a shortage of long-term rentals, so investing this way is a good idea — there are several Facebook groups that make advertising for tenants an easy process. The Mammoth Lakes Chamber of Commerce is also working on a homeowner-tenant matching program.

Short-Term/Nightly Rental

In Mammoth Lakes, short-term (or nightly) rentals have boomed for decades, but there’s been an even bigger increase since the rise of Airbnb, HomeAway and VRBO. Short-term rentals over several benefits over traditional rentals, which many investors find attractive, including flexibility and higher profit margins. An experienced Mammoth Lakes realtor can guide you to properties that are likely going to have the biggest return on your investment. Check out what you need to know if you’re considering buying a vacation rental property in Mammoth Lakes.

Is real estate investing too good to be true?

You’ve probably heard stories of someone who struck it rich with a well-timed real estate purchase. But like any investment strategy, if there’s a high potential for earnings, there’s usually high risk. Still, a well-executed real estate investment in Mammoth Lakes can be one of the best choices for your money.

Regardless of the route you choose, make sure you’re working an experienced local real estate agent who knows the investment market well and can guide you through the process.

 

If you’d like to talk, call me anytime at (760) 914-4664.

 

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"Sonja sold my family's condo in Mammoth that we had owned for over 40 years. Sonja made the process so easy for us. We weren't in Mammoth and it took her 2 days to go from getting the green light from us to sell the condo to being on the market. We had multiple offers and Sonja was great at explaining the pros and cons of each offer. We were in contract 2 days later (so 4 days from the date that we gave Sonja the green light) with a very strong offer that was higher than the asking price, and we closed within 30 days. It was smooth sailing from start to to finish - she was always reachable and a pleasure to talk to. Thank you, Sonja!" - Lindsay B.

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Hosted a small gathering at our house tonight and this platter from @nibz_grazebox was a hit! Highly recommend. Order on their website or via messenger and they deliver! Presentation was amazing and the food delicious! ⭐️⭐️⭐️⭐️⭐️ ...

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Congratulations to Kit on the sale of Forest Creek #4. Thank you to Kerrick and Yajaira at Coldwell Banker for bringing a cash buyer who is keeping the long-term tenant for a few months! Thanks to the tenant and Inyo Mono for a smooth escrow.

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Giving myself an A- for June goal achievement. Shooting for an A+ in July which includes upping my movement goals. I got this! ⭐️ #moveveryday #getoutside ...

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Not just one but TWO Open Houses on Saturday, July 2. Stop by and check out two very different properties from 2 PM to 5 PM.

1330 Forest Trail is a 5 bedroom single family home

165 Old Mammoth #91 is a one+loft condo in Sierra Manors

LINK IN BIO for listing details.
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FOR SALE! Looking for mountain modern luxury condo with all the creature comforts? Look no further than this desirable two-bedroom corner unit on the pool level of the Westin Monache.

Link in bio...

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All the wildlife coming out this month showing how much life there is in the Eastern Sierra. Anybody seen a bear yet??

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Independence Day is an action-packed day in Mammoth Lakes. Theres many fun, family friendly festivities planned on the Fourth of July and throughout the weekend. Personal fireworks are prohibited within Mono County, including the Inyo National Forest (INF), and Bureau of Land Management (BLM) lands. Be smart; leave the fireworks to the professionals and join us in the mountains for the celebration!

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"Sonja is an absolute gem!

Sonja is now part of a special moment in our lives for helping us find our vacation home in Mammoth Lakes. A place that I've been going to since my teen years, a place where I'd ditch school and drive to Mammoth Mountain, sleep in my car to get fresh tracks, a place where I got married and now a place where we can share family memories with our 2 boys.

Fully transparent throughout the whole search and purchase process in helping us find our 2nd home.

She was and still is always accessible via phone or text, and is always on the looking out for what fit our needs. She was our eyes and ears and helped facilitate much of the leg work while we were 6 hours away.

Her deep knowledge of the market and the local areas really helped guide us to picking the right location in Mammoth Lakes.

Anytime anyone asks who my real estate agent is, it's a no brained to say Sonja Bush! She'll take care of ya!"

- Michael H.

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Feeling the positive energy today 🙂

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It doesn’t matter if it’s a sellers’ market or one that’s more in favor of buyers; if a house is desirable and priced appropriately, the chances are you’re going to find yourself in a bidding war.

Makes sense, right? If you love the house, most likely other buyers in the market will as well. So, not only do you have to act fast, but you need to pull out all the stops in order to get your offer accepted.

But that doesn’t mean you want to offer more than you have to in order to get the house! It’d be nice to be able to submit an aggressive offer that’ll beat out every other offer, yet not go more than a few bucks higher than the next highest offer, right? Well, you can pull that off with the use of what is known as an escalation clause.

More info in by blog, link in bio...

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Love my clients -- especially the ones who bring me gifts like these eggs from their very own hens! Thanks Sandra!

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There’s a lot going on in the United States economy, and that can directly influence the housing market both locally in Mammoth Lakes and nationwide.

So, what does the current economic climate in the US mean for the housing market in the coming months?

Check out more in my blog... Link in Bio...
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We have all had one of "those" neighbors, right? I can help.

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If Your Property Needs Major Updating or Repairs, Now Might Be the Perfect Time to Sell It...

More info in my blog, link in bio...

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This weekend is the Flash Fox Trailfest. Mammoth is always coming up with new events and experiences like this. It's so wonderful to live here and be a part of all the fun things going on locally.

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Summer flights are here!

Fly with Advanced Airlines from Hawthorne (HHR) or Carlsbad (CLD) directly into Mammoth Lakes this summer between June 16 and September 12, 2022. United Airlines is offering flights into the Eastern Sierra Regional Airport in Bishop (BIH) this summer. Fy June 24 through September 5, via San Francisco daily except Saturdays.

See you in the mountains!

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