All Forum Posts by: Will G.

Wondering if airbnb is having an affect on the long term rental market by tying up so many housing units into short term rentals? Apparently there are 4 million listings on airbnb, which is many years worth of apt construction, now being used on short term basis. Anecdotal evidence; went to look at an acreage property, the 84 year old owner was telling me i could make a fortune with cabins on airbnb, which is a classic bubble warning sign to me, and checking availability of a place to stay in florida revealed hundreds and hundreds of listings with perfectly nice houses minutes from the beach for under$50 bucks a night! How does that even make sense?? You would have to rent it every day out of the month to beat long term rental income, plus the hassle of between booking cleanings, maint etc. Any body have short term stuff that may not be as active as you thought? And then what happens in next economic downturn when folks vacation less? 2 million rentals all go on the long term market at the same time?

just get a long as possible due diligence period, so you have plenty of time to sus out the reasons its never been devoloped. In the mean time contact builders, developers, county building office, civil engineering firm,etc and see what issues you or a buyer might face. The perk tests would come after everthing else checks out

@cargi Ozcaglar

Please forget the reits as well, they will not perform well and have not been doing well in a raising rate environment

@Ray Johnson I am glad to hear there are some investors left sticking to their guns! seems like so many deals are going down without consideration of the possible outcomes. Fred website shows vacancy rate was 11% in 09 and for those buying 5 caps assuming 5% vacancy, are betting on perfect conditions for their loan term.

@Lane Kawaoka Thats the first i have heard about the past loan experience. Is that fannie requirement, and does it have to be commercial loan experience?

is it just me or is every conventional investment "yield starved". Stocks very close to overvalued if not already, bonds stink in a rising interest rate environment, real estate is risky now(home prices bounced well above the trend line)and way below normal on yield.R.e. notes may be the only thing to consider unless you are brave enough for bitcoin 

another vote that it would be weird outside of an apartment or tiny home

I don't think you need a licence to sell your homes, just to get them on the stupid mls! Otherwise use zillow etc and pass the 6% savings on to your buyers:)

Congrats on your crypto success and wisdom to get out with gains! Is that 15k your yearly net? cause it better be! you need  30k gross to have 15k net(including management) and still kinda crappy investment wise unless you are SURE it will appreciate. 350k x 4.4% = 15k.

No apartment buildings available? I would think your cap rate would be better

my 2 cents, change them if it makes you feel better, but I doubt the average buyer would know one way or the other, as long as they look ok. I would often be disappointed in buyers perceptions of how well I built a house. all they cared about were the granite counters and stainless appliances etc. Hopefully that has changed some and more people are concerned with energy efficiency?