All Forum Posts by: David Flores

Hi Everyone, just wanted to chime in here! Be weary of property management in Morgantown WV. Some of the players can ruin a property! Contact me if your every interested in property management, we have been making clients and tenants very happy!! 

@Idris Haroon

Lets put it this way, if everything went belly up you wouldn’t be able to afford the property taxes on a large portfolio. Even if every property was paid off.

Lets say you are a full time real estate investor (the majority of your income comes from real estate). If for whatever reason all of your rentals became vacant and the world stopped. Well, no **** your over leveraged! Thats like telling Apple if there was a major recession and no one bought phones anymore hey would be screwed!

There is natural risk in business, its how you manage the risk that matters.

@Tanner McGrew

Was going to say! POA! That sounds like a god damn nightmare lol

@Michael Baum you cant blanket their internal problems as the entire structure being wrong. They are a multi billion dollar company and they are doing well today.

Their IPO failed because they overvalued themselves which was their internal finance and CEO's fault. They still ended up being valued at 10 billion but pulled it because they expected to be valued at 85 billion.

There is risk involved for sure because you debt is all unsecured (not actually owning the property). But that is the obvious risk I think Air BNB Arbitrage people already know.

@Caleb Haynes

A little trick I learned to make your offer competitive against all cash buyers is by submitting an off with no contingency’s. Sellers want either a cash buyer or a clean swift close. With no contingencies you will absolutely heighten your chances to get an accepted offer. But you are also adding some risk. If you plan on doing this I would walk the property throughly with a handyman when you see the property.

@Ben Morand

Listen man, lots of these people on here are in their own lane and resist anything contrary to their beliefs on how real estate should work.

That being said, Wework is basically airbnb arbitrage if you boil the entire concept down. Still a very successful and thriving company.

Just know air bnb arbitrage is very risky. Imagine having 10 rentals. Something happens to the market/area. You are liable for the rent but may now only be pulling half of what you did. You have no last option exit (selling the property) because you dont own anything. This could end in evictions on multiple properties, civil lawsuits, and huge headaches. But best case scenrio could be just getting evicted+time/money spent on the service.

Not saying this cant be done. Many people were successful at it. But im sure corona ended most air bnb arbitrage businesses. Wework was able to sustain the damage of corona and now are back up and running. Most small timers wont be able to build capital like they do.

Hi Jaime,

I am an investor in the city (30+ units) and I am actually part of the team that started Red Brick Property Management.

You have really asked a loaded question! Lol, First, would you like to be investing in college rentals or none college rentals? Both have their advantages and disadvantages but that will at least narrow your search down to a good enough point where I can recommend locations.

Thanks!

Dave

@Jason Lee, that would be very surprising to me. Those are some intense increases YOY. Do you have a link or some kind of reference you can point to? I would love to read into what you are and get a different angle on it. 

@Jason Lee

I would look into the amount of single family homes in HC. Its not NYC but it is certainly not a suburb. Townhouses, condos, and apartments over run the area by a large margin. That being said as you pointed out there has been negative appreciation as of late. My worry is this continues.

I would also challenge your home sale population having increased. I believe people are moving, yes, but i don’t believe that has any correlation with how your investment does. Movement can be good or bad.

I don’t mean to challenge you but i have been in finance for many years and its very easy to present or skew numbers to fit a storyline.

@Michael Plante

Only fee is credit card payments, but that comes out of the tenants pocket on cozy