All Forum Posts by: Krystle Khoo

Thank you so much everyone for your recommendations!! We've decided on Twana's go-to, Derrod Property Management. He's made it so easy for me so far, and I look forward to working with him.

In the meantime, we are still looking for contractor contacts (thank you Simone for yours!) to help with flooring and potential bedroom conversion in the May/June timeframe.

@Ben Bartels I haven't seen inflation mentioned yet.

Inflation will cut the real value of your mutual fund over time. Your realestate portfolio will see the following benefits:

1. Rents and prices will rise with inflation.

2. If you used leverage you will be paying back debts with cheaper dollars.

Fun fact: 20% of all USD were created in 2020.

https://tradingeconomics.com/united-states/money-supply-m2

https://www.thestreet.com/mishtalk/economics/23-6-of-all-us-dollars-were-created-in-the-last-year

So what do you think of this assessment...

2020-2021:

-Lumber supply squeeze and demand spike pushes prices through the roof.

-Builders delay building due to uncertainty and high lumber prices.

-High demand for housing and lack of new housing supply pushes DOM down and housing prices go up nationwide

-Lumber mills react to price increases and expand production capacity. Building that new sawmill starts next year, won't be finished until end 2022/2023.

So...

-Price to build new homes will continue to stay high until mid 2023, which means those won't be coming on the market until late 2023/early 2024.

-Sometime in 2023-2024 we should expect to see much more sawmill and treating capacity than we had pre-covid. This will eventually lead to a supply glut and much lower lumber prices.

-Cost to build new construction compared to the "new-norm" level of housing prices in 2024 will be cheap.

-This will lead to a rapid growth in housing starts in 2024, which will stagnate home prices for some time.

Do we have any builders here who can add some insight here?

Thanks @Tim Hoh! They were one of the first few property managers I tried to reach out to when I first started looking last year, and they only sent me their marketing mailers even when I desperately asked them for contracts to sign haha. Very strange. But it's good to know that tenants find them good! 

Hey @James Peters... who does your friend use for a property manager in Oceanside CA? Is it still working out? I'd love to get that contact if possible!! Thank you :)

Hello! I have a SFH property in Oceanside CA and am looking for a property manager. I am already using a management company, but would like to find someone else. Unfortunately in my hunt for one, I have encountered many unresponsive property managers, or managers who simply don't follow up! I'd love to hear your recommendations :) I'm looking to make the switch in May 2021.

I am also looking for a contractor for new floors - recommendations welcome as well.

Thank you so much in advance!

Re-posting this to hopefully a more appropriate forum...

The local utility company is expanding services to our part of town and are requesting an easement on one of our SFH rentals in order to run a water main through the front of the property and a sewer line through the back. We are trying to find our negotiation position and power based on two perspectives:

1) What is the cost to us?

-The easement will restrict the building of structures, pools, decks, sheds etc at the back of 20 ft of our plot. What value should I give the lost use of this land?

-Our initial consideration is that it should be based on the market value of the land, not the tax value, and that we should consider not just the decreased sales price but also the opportunity cost of that easement for the years that we keep this property.

-What other risks or negative impacts will this easement expose us to?

-How should we appropriately compensate tenants for the lost use of both the drive way and backyard of the property? Property rents for $980 per month.

2) What is this worth to them?

-What do developers budget for easement purchases? What do utilities allocate for this?

-If we hold out for a higher price, I imagine at some price it will be worth the utility's time and money to re-route both lines through other properties instead of ours. What other alternatives could the city's utilities company have to avoid our property and exit the negotiation?

What else should we be thinking about ? We intend to hold this property as a long term rental, but would also like to know how it will affect us when we decide to sell it.

Any additional advice would be much appreciated. Thank you!!

The local utility company is expanding services to our part of town and are requesting an easement on one of our SFH rentals in order to run a water main through the front of the property and a sewer line through the back. We are trying to find our negotiation position and power based on two perspectives:

1) What is the cost to us?

-The easement will restrict the building of structures, pools, decks, sheds etc at the back of 20 ft of our plot. What value should I give the lost use of this land?

-Our initial consideration is that it should be based on the market value of the land, not the tax value, and that we should consider not just the decreased sales price but also the opportunity cost of that easement for the years that we keep this property.

-What other risks or negative impacts will this easement expose us to?

-How should we appropriately compensate tenants for the lost use of both the drive way and backyard of the property? Property rents for $980 per month.

2) What is this worth to them?

-What do developers budget for easement purchases? What do utilities allocate for this?

-If we hold out for a higher price, I imagine at some price it will be worth the utility's time and money to re-route both lines through other properties instead of ours. What other alternatives could the city's utilities company have to avoid our property and exit the negotiation?

What else should we be thinking about ? We intend to hold this property as a long term rental, but would also like to know how it will affect us when we decide to sell it.

Any additional advice would be much appreciated. Thank you!!

@James Storey where does ESRI ArcGIS pull it's data from?

What tools do you use for local market analysis in order to determine current supply/demand for different types of commercial property?