All Forum Posts by: Frederick Wofford jr

@Asma Shah

I’m looking for the same info. Following this post!

@Kevin Tang

I bought a STR in JT back in April 2021. It does well, but your concern of over saturation is true. There's so many new builds & construction going on out there & each getting nicer than the last. Getting a permit for San Bernardino is really easy, they haven't done an actual inspection since Covid started, they do a drive by supposedly.

My thoughts on the JT right now is this…

The air bnb boom started when the pandemic had travel restrictions at its peak. People couldn’t fly anywhere & were tired of being cooped up in the house. Joshua tree became the perfect drive up “staycation” place to go for the people in so cal. People were able to visit a place only 2 hours away from LA that was outdoors & safe. Visits to the park increased more than 100% year over year. Social media played a huge role in advertising as well. However investors like myself got wind of the increasing travel & extremely cheap real estate & took advantage. (It wasent really a secret, airdna.co ranked both yucca valley & JT top 10 in national mid sized markets for 2020-2021).

All that being said, if your not already in the market the ship likely has sailed. The prices for the homes are too high for a good enough return imo. With more rentals going up everyday, our nightly prices must come down. We’re currently in peak season for JT since it’s cooled down outside, but the pricing is about 30% less than this time last year. My advice find a bigger market with higher returns.

Las Vegas should be at the top of your list.

@Dave Price

There's not necessarily a time frame for buying another home even if using the 10% vacation/2nd home method. Most lenders will require you have 100 mile radius between these homes though. However I've found a bit of a loophole & it works for me. After buying that first STR as a vacation home at 10% you'll need to show the income on your taxes (schedule E). When you claim income on a vacation property, guess what? That vacation home turns into a investment property on paper. Meaning you no longer technically have a vacation home. You can repeat this process again to buy another vacation home at 10% rent it as a STR then just throw it on your schedule E again & continue to repeat.

Once you've done this about 5 times banks will start to take note. Actually it's already well known which is why as of April 2022 most lenders will charge vacation homes with the same rates as investment properties. Not the end of the world, but just a heads up on rates. Once you've reach the 5 or so amount of these so called vacation homes that the banks begin to question you, you should have built a strong enough portfolio to begin investing with a higher down payment 20-25% making purchase as straight up investment & in which case making purchases should be much easier as DTI will matter less.

I’m looking to invest in a short term rental (air bnb) in the State of Colorado. Looking for advice & input on specific markets. Currently comparing Boulder vs. Denver vs. Estes park vs. Colorado Springs.

Anyone know which of these cities have the best earning potential, which attracts the most tourist. Pros & cons of investing in any of these areas?

Any information is appreciated.

I’m looking into buying a duplex in the Long Beach Ca area. The property has two separate units with no common walls. Only a small yard for each. My question is, when analyzing local rents, should I be comparing these units to similar single family homes; or do duplex’s typically rent at the rate of an apartment? Both units are 2br 1ba

I’m looking into buying a duplex in the Long Beach Ca area. The property has two separate units with no common walls. Only a small yard for each. My question is, when analyzing local rents, should I be comparing these units to similar single family homes; or do duplex’s typically rent at the rate of an apartment? Both units are 2br 1ba