All Forum Posts by: Jonathan Stone

@Stephen Hollenberg

So based on your numbers you need $245k at less than 8% on a 30 year amortization to cash flow.

As others have said the desire to continue to leverage up scares some people, me included. But if you wanted to move forward with the deal a partner or partners seem in order.

@Jay Hinrichs

Guess all those velocity banking gurus are going to be mad about their HELOC being frozen.

Quote from @Michael Plaks:

Quote from @Kyler Serfass:

This is exactly what you need a real estate tax accountant for. To discuss your specific situation, goals etc. So what if REPro lowers your taxes? Are you going to tailor your life to the lowest possible taxes? Or the highest possible satisfaction, both material and non-material?

You can achieve REPro status if you spend sufficient time personally doing REI, including self-managing your STRs. But a) this is a lifestyle decision, not just a tax strategy and b) STRs may not need REPro status at all, they come with different tax strategies. Again, need your personal advisor.

 Michael I am with you on knowing we need a personal advisor, but where do we find one?

@Aakash Deol

As was pointed out by others, before is better than now is better than in the future. If you wanted to start there are more different methods of investing than any time in the past. More information about those methods available for little cost. More capital is available and even with rates going back up, money is still cheap comparatively.

As someone working in the contracting world. I have a do use multiple tools for PM management. The one that has worked best for our core team has actually been Microsoft Planner which plugs neatly into MS Teams. That’s our primary method of communication so it works. In the past I’ve used asana with some success and more specific tools like ProCore. But I have to say any of it can work if forethought is out into what you want it to do. 

Quote from @Eddie Ward:

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Inputs I would have:
Not knowing how many units this is, what is the water sewer charge for?  Is this a pass through to the tenant(s)?

 Is there lawn/snow removal accounted for?

It seems there is 0$ for property management. 

I would recommend getting a good idea of rates other people in the area are paying for insurance. Recently rates have bumped up so you may be looking at closer to .75% when a year ago normal was .5%

Without knowing the area it’s hard to say what vacancy, CAPEx and OPEx should be locally I am running my numbers at 5% cap and 5% op but I am in Oregon. 

@James Hamling is there a housing scarcity issue the twin cities at this point?  From the investors perspective it seems like an obvious bad move. Do you have some history on where the legal and political support for this came from?

Would seeing people buy a home as a primary to move out later and rent it become a viable strategy? House hop to skirt the rental laws?

Quote from @Ben Nelson:

Wish I could make it in person but I will be driving back from Umatilla Thursday. Hoping to jumó into the FB feed. 

Quote from @Toben B.:

I live and own in a secondary market that has seen a crazy run up. Houses are getting multiple offers $20-25K over asking. I also own a small apartment complex in a tertiary market. 

RE here seems to be at red hot nose bleed levels. I am seeing prices that will not make a return for years and appear to be disconnected from reality. 

I called a broker to see if he was seeing what I am seeing. He said he has an property under contract at a 1 cap and sees 4 caps in the tertiary market. 

Ideally I should have refinanced and cashed out a few months ago, but I missed that window.

Are you seeing what I am seeing or does everyone think rents will keep going up 20% a year?

I am getting tempted to sell it all and walk away for a few years or at least until sales prices and profits start to make sense again. 

I think I can get a 300% return on my apartments and 400% on my houses.  I bought cheap and held after the last crash so I have tons of equity but not that much cash flow. 

What are you seeing in your markets?

How much of a market correction would you need to see to hold cash and still make a profit from the frictional costs. 
if you sell now and pay taxes now you would need maybe a 25+% market correction in prices. Thinking at a minimum your going to be paying 15% long term Cap Gains plus 6-8% in sales transaction costs. So that means you see an environment where prices are going to drop by 1/3 to actually see a profit from selling. Or you have an investment that you think will outpace inflation you could move your capital into?

Quote from @Patrick K.:

Hi all, 

in your opinion, what are some good airbnb-friendly cities that allow for commercial airbnb (i.e. does not require the property owner to live on-site or similar restriction that limits scaling). I am doing my research down a list, but would like some input so I don't miss some good options. 

Thank you for your time.

If you haven’t checked out Avery Carl’s book on short term rentals. I’d paraphrase and say select markets that have long been tourist locations.  If you start there and work to understand local laws and who the parties are pushing for changes either way to promote or restrict STR in the area.