All Forum Posts by: Carlos Ptriawan

Tyler we're talking the same thing. Appreciation can not last forever. However few sure things that will happen:
- we will become nation of renter because The Fed is printing money and those money goes to the stock market and ultimately real estate
- 1% Market in Alabama and STL will be sure going to be 0.8% market in next few years, there're already changes compare to a year ago before covid (before massive low interest rate in history)
- In your Orlando market, up until 2015, the typical R/V in your market is 0.8;  today it is 0.6-0.7 with affordability index of 31%. This is the same as in Silicon Valley market where affordability is 33% and R/V index is 0.6. 
- There're MASSIVE BUYING as of today in some cash-flowing market, ask your local PM if want to find out
- In most cities, the rental yields projection are going to be lower which means appreciation is going up.

Those High CF market can generate better IRR than appreciating market if executed property.

Summary: The trick is to  buy in CF market that's going to appreciate could generate buying the same amount of money in an appreciating market that doesnt have CF if executed and chosen wisely. IRR is your friend. There're a certain type of housing that will generate even better IRR. 

I suggest for this kind of question you analyze yourself based on hard factual data based on some tangile research. If you have to pay, it's worth it. I made my decision based on this. People opinion doesn't generate return but data will generate return. Try to use IRR rather than CF/Appreciation alone.

@Tyler D'Alessandro: Adding to your #5. Appreciation can't be forever. It only does occurred in a certain market where wage growth and job growth is exploding, usually in parallel with the stock market that has crazy valuation.

For example, a crappy house in Palo that only worthed 500k 20 years ago and only 80k in another market, now worth 3 million valuations.

The appreciation can last long enough when the stock market keeps going up (aka gov. print money). But when the party stopped, the appreciation must stop too. I witnessed this in 2001 and 2009 crashes. So yes appreciation is there but it may stop at any time.

Rather than focusing on CF or Appreciation, the job of a master investor is actually only to find a distressed business or property and turn it around. Currently, it could be in the hospitality sector.

I have hard data on this. First, the question is wrong. It's not OR, it's "AND". There's a formula that you can analyze how much actual money you'll make in 5 or 10 years when combined both things.

And also remember: Cash flow is a current state while Appreciation is inherently speculative.

I give you a clue. In the highest Appreciating market, the average rental to value of any property is usually 0.59
while in high cash-flow market, the average rental to value of any property has range between 0.9 to 1.2. In CF market, home affordability to wage is 20 percent while in Appreciating market it's between 30-40 percent.

However, it is very POSSIBLE, at the end of 5 years, the dollar that you invested in either market can generate the same amount of money. Dollar to Dollar, percentage wise.

Kristina: your company gets the idea and solution 'almost' right. The pain for OOS is actually only finding a local good rehabber (if required). Finding a good potential rental in MLS or wholesale or turkey or Roofstock is not difficult for experienced investors as most of us are experienced risk-taker. However, finding a rehabber does bring lot of difficulties (although there's a partial solution to this issue by exploring more rehab businesses with property management in a select market).

The problem with this solution is the investor is locked to a specific market. For example, If I'm using doorvest, I'll locked-in in TX market, while in another market, I'm locked into a different set of teams which again I need to manually bring up the speed.

I do hope your company to be successful and expand to other markets, and eventually, the ability that investor itself that pickup the property based on our criteria and configuration. When that's possible in the future, there's no limit to your success.

I started seeing many unicorns in real estate development which  may fundamentally change the way people buying/selling real estate in the future.

This is Pro TIPS for make your Airbnb very pleasant and safe : the best Airbnb renter is always paid professional that's looking for temporary housing: nurse,doctors,engineers,contractors... Asks why they want to stay, what's the purpose,etc.

Reject those who's living local in the area except under certain circumstances, unknown objective. I don't open my airbnb for vacationeer also, they're source of trouble sometimes as they expect 5 star hotel treatment LOL (sometimes they're acting more than the home appraisar haha )

1. There're few services available online that you can sell with minimal agent involvement/fees, there're few companies working like this. (REX?).
2. Have it as a rental, sell it in Roofstock, you only need to pay 3%

1. Silicon Valley appreciation is almost limitless
2. Out of State investing is a possibility
3. Anybody can buy apartments with low down.

why ? REI the easiest almost no-brainer investment strategy. It's like someone throwing at you one hundred dollar and you need to make it ten dollar for every 100 dolar that you received.

If you want the safest, rent it to a professional. Many companies are using Airbnb these days and it's easier for them to find room from Airbnb rather than craigslist,etc. My experience renting out rooms to professionals via the company is generally positive, but still, you need to write your own rule and regulation.

Hi Tim, actually it's good news. I believe in some high-priced market in CA there's very less appraiser that uses the income-based approach as usually, it gives lower value to the property due low rent/market value ratio.If the ADU PSF is being priced equal to the main house ADU then there's still hope of building ADU ( as long as the appraised main/ADU PSF > 1.5 * construction cost of building ADU ).