All Forum Posts by: Jonny Phillips

Basically south of Lima, north of Dayton and west of Columbus. I grew up out there, but haven't lived in the area since 2011. I want to connect with investors/contractors/hard money lenders. Looking at purchasing an investment property in Spring/Summer 2021. Thank you!

@Dan H. hit the nail on the head. It was only maybe a month or two that the regulations were scheduled for next July before it got rescinded. Overwhelming negative response to the regulations. You should be in the clear to do so. As dan said about any RE investment plan that relies on STR to succeed, it doesn't sound like your investment is dependent on Airbnb success. What I read in your thread was that you just desire to seek more cash flow from the property. Good luck Ellis! Excited for you!

I actually enjoy when agents are involved. I am licensed and can represent our LLC if needed. But, having the agent help move the deal along and make sure they're looking out for the seller's best interest, I find, is very helpful. I don't want to leave a trail of anger, disappointment, questions of ethics. It also helps with the "long dollar." Buying directly from a homeowner is a one and done type deal with the highest cost of marketing (typically accompanied by a higher return). But working through an agent with a pocket listing or even on the MLS can be the groundwork of a great working relationship moving into the future. I focus so hard on buying correctly and all but ensuring my performance on the deal (I don't assign contracts though). We close on the property and already have a buyer under contract subject to us closing with the seller. Creating a track record of performance, transparency, and building a positive reputation are the most valuable assets that someone who wants to wholesale can do. I missed that point when first getting into real estate. The $ signs are very attractive at first. But, you have to focus on value delivery. Actually deliver the value that you're promising.

We focus on performance %. My personal performace % is 100%. As a whole, our San Diego wholesale brokerage, hovers between 85-90% performance. There's always margin for improvement. Focus on performance. Don't fluff your numbers to get the contract. Banking on requesting repairs or reductions will only leave a trail of waste behind you. Be realistic. Be honest. 

@Shawn Couch I will PM you

@Dan H. I sense that there will hesitancy across the board to see how this shakes out. Other investors (fix and flip + LTR) I work with have kept STR in their back pocket as a short term/back up option.

I feel for you with your STR in Mission Beach. I too would hope there would have been a grandfather option for you!

@Tim G. I've noticed other investors taking a similar stance as well

@Brent Blum the higher supply of long-term rental units would definitely be good news for local residents. I like where your head is at with investors who might want to sell. 

@Jon Crosby it definitely was a hasty decision and you know that it is going to get challenged. I like what you said about Tahoe. I think regulating permits is a much more reasonable way to do get the desired result. The good thing is that it won't take effect until July 2019. I imagine we'll hear updates in the meantime. Until then, all the investors who might find themselves stuck with STR's can figure out how to take their operation underground (good luck!) or figure out some alternatives.

It's a perfect example of risk versus reward. STR's are high risk/high reward and situations like this prove that.

San Diego City Council votes to limit Airbnb rentals to primary residences only.

I'm torn on this one.

The economic and investment side of it from a professional stand point is frustrating. Investors can get great returns on these properties. It brings outside tourists in and contributes on that front of the local economy.

A local side of it is that a lot of units and properties are being taken off the market from long term residents.

My wife and I used to rent out a room of our house on Airbnb when we lived in NY. New York state instituted a similar law. No short term rentals under 30 days unless it was your primary residence. We were still able to continue renting it out until we moved to SD. People doing this similar thing in San Diego won't have to stop but it sounds like there will be for fees and permits they have to apply for.

Thoughts on this very recent change?

SD Union-Tribune Article

@Ellis Hammond I have not noticed too much of a slow down. We have stayed between 10-15 deals closed each month for 2018. I've seen a slight uptick of deals with value add potential or buy and holds. 

We are still anticipating a market correction will begin to open the door for more attractive deals for our buy and hold buyers.