All Forum Posts by: Justin R.

Don't do cash for keys. That is like paying ransom, and encouraging the act. Landlords do it because they are lazy and its the easiest way for them to deal with the problem This trend has gotten so popular that now even the tenants know its a thing. Please don't contribution to the problem. 

Go to the courthouse and file an eviction. If you don't want to do that, use the money you would have paid for ransom (or cash for keys) and hire an attorney to do it for you. 

Best of luck to you!

Dont shoot randomly. Invest in your own backyard (even if its temporary) if you can. Many areas in central CA have had, and will continue to have growth. Yea CA sucks and Im not going to sugar coat it. The cost of the more expensive markets in CA (SF Bay Area, So Cal coastal, etc) have people leaving by the flocks. Many of these people are going to central CA because of its proximity to the areas they moved from and their family. 

Another benefit of CA is the low property tax, and prop 13. Buying in CA now locks in your property tax rate with minimal future growth. 

Plus, if you buy a 1-4 unit property and live in one unit (even temporary till you move) you get the best financing available, and with rates this high that is prudent. 

Nothing wrong with investing out of state. It does take a lot more due diligence, trust, education, and trial and error. You have the opportunity to create those relationships, and knowledge where you live much much easier. 

Quote from @Bradley Shuhart:

I have an opportunity to assume a loan at 2.5% in a HCOL SoCal community. Even at that rate I will still be losing about $800-$1000 per month with a renter due to HOA & Mello Roos. I'm ok with a negative cash flow for a couple of years because its in an area that should continue to appreciate. My question is how much is too much negative cash flow? Is there a general rule of thumb or is it based on personal tolerance. Thank you!

Anyone here saying "any negative cashflow is too much", doesn't fully understand markets outside of their own. The question should be "how much negative cash flow is too much for YOUR situation."
Cashflow is great, and always one of my top priorities, but not my only goal. Wealth is typically created in RE by appreciation (forced and natural), and long term loan pay down. The markets that typically have the highest appreciation and larger loan pay down potential (driven by property values) are the markets that usually dont cash flow. I invest in the midwest, the northeast, the southeast, and California. Hardly any of my properties in the North East and CA cash flow; yet that are the primary driver in my wealth creation and balance sheet. 
If your subject property was 1m dollars, and you used a very conservative factor of 3% natural appreciation, that is 30k per year, or $2500 per month. At year 1 of the amortization schedule you are paying about $1900 a month in principle pay down, 23k per year. That is 53k per year in wealth creation at only 3% appreciation. 
What about when rents increase? What if you added a room to create more value? What about year 10 on the amortization schedule?
If you cannot afford to lose money monthly then yes, cash flow or work income should be your first goal. If you can afford it, then don't be scared to sacrifice a little bit each month for the long term play. 

Quote from @Elijah Wichers:

I am moving to Hawaii with the military soon and want to know if buying a condo is a good investment. Condos are the only affordable thing and I want to get started and own a place. However, with hefty HOA fees and high interest rates, my housing allowance will be exhausted and maybe even exceeded. Is it still worth while to buy and try to gain some appreciation and even some cash flow if I rent it out down the line? Or is now not a good time or are condos a no-go? I just want to learn and make the most financially sound decision. Unfamiliar with the area and how real estate operates there

Thanks for your service. Yes, you should absolutely buy a home in every single duty station assignment you get during your career. Sacrifice the GI trips to Apple Bees and muscle cars. The tradeoff will pay dividends in the long run. If you can get a SFD (even if its further from the ocean) I would suggest that. Stay away from HOA's when possible. Some landlords make it work with HOAs, but most find them to be not worth the squeeze.

Hello and great job making some steps.

1. What is the best way to find comparable rent rates? 

INITIALLY RENOTOMETER, OR ZILLOW ZESTIMATE. NEXT PHASE LOOKING YOURSELF ON HOTPADS, APARTMENTS.COM, ETC. FINALLY, ASK A PROPERTY MANAGER FOR CONFIRMATION (DONT BURN THIS BRIDGE BY OVERDOING IT.)

2. I have a friend and his girlfriend that are starting a family that want to live there. Is friends and family discount viable? I do have other options for tenants.

THERE ARE PROVISIONS ABOUT WHAT YOU CAN EXPENSE AND TAKE AS LOSES WHEN FRIENDS AND FAMILY LIVE THERE. DO SOME RESEARCH, ASK AN ACCOUNTANGE, AND MAKE THE PERSONAL DECISION YOURSELF ONCE YOU KNOW THE FACTS. TYPCIALLY, ITS NOT A GOOD BUSINESS DECISION.

3. Is it better to include the utilities with the rent or for me to pay them out of my pocket?

SINGLE FAMILY HOME, HAVE TENANTS PLACE UTILITIES IN THEIR NAME.  NOBODY IS CAREFUL WITH HEATING, COOLING, AND WATER USAGE WHEN THEY ARENT COVERING THE BILL.

@Ardel ALegre

Understand many contractors don’t do bids anymore. With the uncertainty of inflation, supply chain, and labor, it’s hard to make an bid without losing their ***, or over charging so much to create a buffer. More and more contractors are doing “time plus materials.”

In regards to your question, get at least three references.

Yes, In an unknown direction

@Andrew Syrios

The whole ghost town thing is completely fake news. There are still way too many people and vehicles in that city for me to enjoy. Yea the commercial and office sector is taking a beating.

Originally this was from covid, now it’s due to people not wanting to deal with the city of SF, because with work from home movement they don’t have to live where they work.

San Francisco is one of the most beautiful cities in the world. The failed legal, economic and social systems in the city have made criminals the victims, and successful business and tax payers pay the price.

@Collin H. Are you saying there is a system that integrates VRBO, AirBNB, and property managers systems into one calendar? Out are you saying to justjust check then individually?

I have been doing STRs for a few years but my niche is long term rentals. I have been using my property management company to run the STRs.

They utilize AirBnb, VRBO, and their own website for the bookings.

I basically have zero oversight (besides logging into the AirBnb account) as the net income just gets deposited into my account.

Is there a way I can pull occupancy data, and average daily rates from VRBO and AirBnB (other than going into the history and doing the math myself?)

Is there a good platform or calendar that people are using to tie all three of these booking resources together?

Thanks for any input. I would just like some type of oversight of my PM so I can better track performance history.

Thanks