All Forum Posts by: Jon Martin

What neighborhood? Might work as an STR or MTR, especially if it's close to the hospitals. My STR is near the West Village and Brandon Mill and does better than your estimates as a 2/1. If you can at least break even and hold I think the appreciation will pay off- the town is booming!

For an LTR I would pass on the rehab and it would probably be fine (serious issues permitting). 

 my wife has pointed out, "that place looks nicer than our house!" 

I'm like, "well yeah, it's business! We don't make money off of having nice things here". 

Doesn't seem to resonate. 

Thank you all for the replies. For the record I am not going this route in the near future, simply trying to understand. The reason I asked is because the aspect of how the seller gets compensated for the equity was not adequately covered IMO in the podcast episode. 

Just listened to the Pace Morby episodes on the regular and rookie podcasts. Really fascinating stuff but I'm still trying to wrap my mind around a dew details. 

Mainly, in the scenario described where it's a zero cash sale and the owner has a lot of equity, the seller is not walking away with any kind of lump sum like they ideally would in a traditional sale, correct? (Unless the seller negotiates for a certain amount down, at which point it would not be a zero cash down sale by definition). Instead, the seller is financing their own equity back to the buyer over an agreed upon amount of time, and if there is still a mortgage the buyer is also assuming the remainder of the loan?  

Do I have it right? 

Not trying to throw shade, but a seemingly $1300/month profit spread that then gets WIFI/cable, water, power etc deducted from it is not what I'd call "crushing it". If by mortgage you mean PITI, I'm guessing you have around $800-1000 leftover per month after paying the bills that normally an LTR tenant would pick up? Which is a nice investment, don't get me wrong, but compared to what many posters here pull from their STRs is fairly average.

I'll be surprised if this "loophole" is still around in a few years. 

 Good call, it's worth the wait. Property looks awesome!

For the market as a whole or per unit? If the former, are there specific reasons for this?

@Sarah Kensinger 100% agreed on everything you wrote. When I look at other listings in markets where I actively or consider investing, everything managed by Vacasa, Evolve, etc is barely over a 4.5 with wide open calendars. Many of them homes themselves have decent potential and are near others that do pretty well. 

@Ryan Moyer also agreed. The market I'm in is up 68% YOY in term of searches but I still see the average listings struggle, and they should. It's better for the market for them to wash out and sell their property. 

People will always travel no matter how the economy is doing, it's how they travel that changes. Instead of 1-2 weeks international they opt for a week somewhere in the lower 48 or something they can drive to, which could even help some domestic markets. Just like when beef gets expensive people don't stop eating meat altogether, but they will opt for cheaper cuts and/or eat more chicken. Travel, while not essential for physical survival, has similar trends. 

Absolutely valid. My comments are specific towards the UI and payouts which I find noticeably clunkier. In terms of business practices they seem like the clear worse of 2 evils.