All Forum Posts by: Jason Rash

 FACTS 

In South Florida, I see a few things happening:

AIRBNB - Most people I personally know who went into Airbnb jumped in after getting swept up in the Big returns + the 2.5% Interest rates. In my eyes this created a bloat.

The other issue that most didn't see is that now the STR market is 10X more competitive - if you can't market a property to its fullest : Themed/ Clean/ Location/ Instagramable.. then most will get buried in the rise in taxes and insurance. This is the off loading most are seeing now. People are still traveling but being more selective where they make the memories

I wouldn't say a crash per say is coming with these properties. What I do see though is, many will off-load these properties within the next 12-36 months. However long they can hang on for or until it isn't economically feasible - whichever comes first.

Residential Property:

As far as a correction, that's happening now - unfortunately most of current price reductions are because agents either don't know the real starting price point, or what's more likely... the real estate agent is in a personal cash crunch and will just list at whatever the seller wants to list at.

There is still demand as many people who have the means are paying in cash 1MM-10MM all cash. They are all coming from New England, specifically NY and Connecticut. When you have great policies combined with zero state income tax you will more than likely always be on the high side of demand. 

I've been hearing an RE crash is coming for the last 5 years.... still waiting

Hope that helps

Pool but make the backyard Instagrambale with over the top landscaping. And Name the property with a custom website like LasVegasFarmhouse.com or something - When people start to tag your property's backyard on IG, because it has it's own page that you put up a flyer in the unit to notify them. this is free marketing and word of mouth that will drive in new revenue. 

Marketing is key when it comes to AirBNB

Hope that helps!

Most people I personally know who went into Airbnb jumped in after getting swept up in the Big returns + the 2.5% Interest rates. In my eyes this created a bloat. 

The other issue that most didn't see is that now the STR market is 10X more competitive - if you can't market a property to its fullest : Themed/ Clean/ Location/ Instagramable.. then most will get buried in the rise in taxes and insurance. This is the off loading most are seeing now. People are still traveling but being more selective where they make the memories

I wouldn't say a crash per say is coming with these properties. What I do see though is, many will off-load these properties within the next 12-36 months. However long they can hang on for or until it isn't economically feasible - whichever comes first. 

As far as a correction, that's happening now - unfortunately most of current price reductions are because agents either don't know the real starting price point, or what's more likely... the real estate agent is in a personal cash crunch and will just list at whatever the seller wants to list at...

Hope that helps

I'm an agent in South Florida, and an investor - here's what I see and what I know.

I just sold an Airbnb for 1.3 million in West Palm. This airbnb had everything, totally perfect. So desirable in fact that an agent fro Ryan Serhant's office personally flew down to check it out and make an offer. We got under contract within 14 days of listing and closed 2 weeks later. I marketed this property as a business - as it brought in 155K in gross revenues , could go to 180K with some extra work.

I see many people who got into the airbnb game 3 years ago trying to unload now, almost at cost. When I comped out the property there were 7 others trying to unload. I held open houses - people flooded in. I shot IG reels and Youtube Content - people DM'd me about the property. 

Prices are softening by 10%-20% - not because the demand isn't there - people want to buy. Most don't have the capability to buy with IR so high. 

It should be noted that many investors came through my property, loved how I was marketing it, but this wasn't the perfect investment for them.

What's happening is that there is ZERO competition - so buyers/ investors/ are subconsciously waiting on the sideline for someone to give them the all clear. 

I honestly see them raising IR by end of year - prices are still increasing, especially for insurance premiums. 

I also see demand surging at the first rate cut. We are in a reverse frog boil environment  - Instead of boiling to death slowly they raised IR so fast that people are unsure/unclear when it's a good time to come back in - they will more than likely lower rates 1/8 to 1/4 point at a time, incredibly slow to allow the market drip back to normal preventing a surge

I'm also seeing people drop $5,600,000 in cash to $13,000,000 in cash like it's nothing

Cash rules down in florida even on 889K deals 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $63,750
Cash invested: $13,000

This was my VERY FIRST deal. Had no idea what I was oding.

Bought for 63,750 off market in Feb 2021 worth around 130K+ currently.

What made you interested in investing in this type of deal?

When I bought this rental in 2021, everyone was saying the RE market was about to crash. My own family members kept telling me how crazy I was. Understand, when you are trying to buy your first rental, from 1,500 miles away you need all the support you ca get, no one was supporting me except for my wife. This is the HARDEST part of investing, doing your first deal. You can read 10,000 books but you will learn exponentially more mre going through your first deal.

How did you find this deal and how did you negotiate it?

I posted on FB that I was going to start buying rental property and this guy reached out to me from high school and said he had a property he had been trying to sell. I hadn't spoken to this guy in 20 years - this is the power of social. He had just installed a new WH, New HVAC and new appliances. We did the deal with no RE agents.

How did you finance this deal?

I put 20% down/ 30 year fixed. The hardest part of the deal was finding someone who would finance 50K for 30 years and be ok with making $1.48 in profit a month.

My mortgage payment was going to be $312 and this house, by my estimate should rent for $1,050/ month - which it did.

How did you add value to the deal?

Literally did nothing. I was looking for close to turn-key as possible.

What was the outcome?

INCREDIBLE. With only putting 13K down and netting over $650/month I made my money back in about 20 months - I still own the property and it rents for $1,250 currently. Insurance and taxes have increased but Im still clearing the same amount. I've had to chaop down a massive oak that cost me about 5K to remove but other than that, not too much.

The property itself is worth about 130K -140K currently so I will be 1031 exchanging next year when rates come down to a newer property.

Lessons learned? Challenges?

While everything above is great people lower rent brings lower people problems. I will be exchanging out and purchasing something around 250K with the proceeds which will in turn bring higher rent and a better quality of tenant

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No. I did the deal myself, all of it. We used a closing attorney to close the deal.

This was eye opening for me on the paper work side of things, at the time it was quite a bit but a wonderful lesson to learn especially being my first deal. I have used agents for all my other deals.

Investment Info:

Single-family residence buy & hold investment in Prattville.

Purchase price: $194,500
Cash invested: $51,000

When we talk about long term rentals the goal is to buy something that people are going to live in 3-5 years with the ability to raise rent over time ahead of insurance, taxes and inflation. This property fits that description.

What made you interested in investing in this type of deal?

It checks all the boxes that make a great long term investment

3/2 or 4/2
All brick
No pool or basement
No large deck
Newer than 2000
Not in a floodzone
Near shopping and the interstate

Bonus points if you can find something with a garage

How did you find this deal and how did you negotiate it?

I used to live here. I actually surveyed land for 12 years in the area and know all which way the socioeconomic patterns are flowing. I know which areas to avoid, which are solid and which are growing.

My PM found it, the owner was moving out of the country, got it off market at BELOW market value. I knew this property would be in high demand.

How did you finance this deal?

20% down/ 30 year fixed.

Will refi out my DP + 50K possibly 5 years down the road - and repeat

How did you add value to the deal?

I like to buy close to turn key as possible. This house only needed a full paint job, hot water heater and new flooring. I spent about 7K on the flooring but it's Mohawk LVP and will last about 100 years. So it was worth it.

What was the outcome?

This has been an amazing deal for me. It cash flows great and I still have the original tenants that moved in. I'm able to raise rent throughout the years.

Lessons learned? Challenges?

That I should have been buying in this area all along

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I did but I found the deal myself. Im an agent in Palm Beaches and I know what Im looking for, I just needed an agent to walk the property and let me know it didn't smell like cat pee and cigarette smoke.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $215,000
Cash invested: $55,000

When we talk about long term rentals the goal is to buy something that people are going to live in 3-5 years with the ability to raise rent over time ahead of insurance, taxes and inflation. This property fits that description.

What made you interested in investing in this type of deal?

It checks all the boxes that make a great long term investment

3/2 or 4/2
All brick
No pool or basement
No large deck
Newer than 2000
Not in a floodzone
Near shopping and the interstate

Bonus points if you can find something with a garage

How did you find this deal and how did you negotiate it?

I used to live here. I actually surveyed land for 12 years in the area and know all which way the socioeconomic patterns are flowing. I know which areas to avoid, which are solid and which are growing.

I paid close to asking, I didn't need to negotiate, it was listed at a great price and I knew this property would be in high demand. When you know what to look for, you walk away with a great deal.

How did you finance this deal?

20% down/ 30 year fixed.

Will refi out my DP + 30K possibly 5 years down the road - and repeat

How did you add value to the deal?

Being 1,500 miles away when I bought this, I like to buy close to turn key as possible. This house only needed a full paint job,garage door repair and new flooring. I spent about 7K on the flooring but it's Mohawk LVP and will last about 100 years.

I woke up one day and realized I needed to run all my deals in the same way a hotel manages all their properties.

What was the outcome?

This has been an outstanding deal. I still have the same tenants that originally moved in when I bought the property and fixed it up. It cash flows mightily and since there are very few properties in the area that ever come up for sale, which keeps the price going up. And very few properties that come up for rent, which keeps rent going up as well

Lessons learned? Challenges?

That I should have been buying in this area all along. And to scale up you need to buy properties that people will live in for 3-5 years, taking care of the property and making sure to continue to raise rent along the way.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I did but I found the deal myself. Im an agent in Palm Beaches and I know what Im looking for, I just needed an agent to walk the property and let me know it didn't smell like cat pee and cigarette smoke.

Investment Info:

Single-family residence buy & hold investment in Prattville.

Purchase price: $212,500
Cash invested: $50,000

When we talk about long term rentals the goal is to buy something that people are going to live in 3-5 years with the ability to raise rent over time ahead of insurance, taxes and inflation. This property fits that description.

What made you interested in investing in this type of deal?

It checks all the boxes that make a great long term investment

3/2 or 4/2
All brick
No pool or basement
No large deck
Newer than 2000
Not in a floodzone
Near shopping and the interstate

Bonus points if you can find something with a garage

How did you find this deal and how did you negotiate it?

I used to live here. I actually surveyed land for 12 years in the area and know all which way the socioeconomic patterns are flowing. I know which areas to avoid, which are solid and which are growing.

I paid close to asking, I didn't need to negotiate, it was listed at a great price and I knew this property would be in high demand.

How did you finance this deal?

20% down/ 30 year fixed

How did you add value to the deal?

I like to buy close to turn key as possible. This house only needed a full paint job, hot water heater and new flooring. I spent about 7K on the flooring but it's Mohawk LVP and will last about 100 years. So it was worth it.

What was the outcome?

Amazing, I cash flow about $682/month and it's gone up about 30K since I purchased it.

Lessons learned? Challenges?

That I should have been buying in this area all along.

I haven't faced any challenges yet since owning but will update over the years if any should arise

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I did but I found the deal myself. Im an agent in Palm Beaches and I know what Im looking for, I just needed an agent to walk the property and let me know it didn't smell like cat pee and cigarette smoke.

Investment Info:

Single-family residence buy & hold investment in Three Oaks.

Purchase price: $194,500
Cash invested: $42,000

Fits the perfect long term cash flow model.
- 3/2
- all Brick
- No Flood Zone
- No pools
- No Deck
- Built in 2006

Original tenants have remained in the property with yearly increases to rent.

What made you interested in investing in this type of deal?

This was the perfect investment property in a perfect neighborhood. This neighborhood does have an HOA only $24/ month but the tenants get a community pool. Also this house was in a 500 year floodplain and a very small deck off the back. There's no trees on the lot at it's manageable for someone to stay for 3-5 years. Additionally this property is located right of the interstate making at very desirable for anyone commuting. This property has a garage which adds $150/ month to rent.

How did you find this deal and how did you negotiate it?

I found this deal through my PM. She reached out to me that the previous owner lived out of state and was looking to move out of the country. However she wasn't going to fix anything. I knew this was a great deal from the jump. But here's what made it sweeter. During the inspection the water heater went bad, and my PM knew I wanted the property so she neglected a new water heater in the deal!

How did you finance this deal?

20% down, conventional financing 30 year.

How did you add value to the deal?

We came in painted and replaced all the flooring with Mohawk LVP flooring. This vastly increased what we could charge for rent.

What was the outcome?

Fantastic. $600+ / month in cash flow. I still have the tenants who moved in right after I bought it and fixed it up. I increase rent every year and I don't have any issues years into it.

Lessons learned? Challenges?

This house was the 12th house in our 17 property acquisition run. At this point in the run up I pinpointed all the potential pitfalls for real estate investing in the first 11 properties. The main lesson I learned was that if you have some experience you can pick the right property, in the right location, fill it with the right tenant and it can actually work out! The tenants have been in the property for a few years now and they just renewed for another year.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My PM facilitated the deal. I was not an agent at the time or in that state.