All Forum Posts by: Jasper K Juhl

@Tom Minturn,

Great question about learning real estate in Charleston, WV. As someone with a wealth of experience in both short-term rentals and multifamily properties, I can tell you that Charleston is a really interesting market right now. You're likely looking at lower acquisition costs compared to other states, which could give you a lot more flexibility in terms of cash flow and potential ROI.

In terms of short-term rentals, Charleston might not have the same tourist appeal as larger destinations, but don’t underestimate its potential. There’s a growing demand for corporate and medical stays, especially with healthcare facilities and the energy sector around. The key is in selecting the right property and understanding the local regulations for short-term rentals—make sure to do your homework here, as some local laws can be tricky to navigate.

If you're also considering multifamily, it's good to know that Charleston's rental market has been relatively stable. The population growth might not be skyrocketing, but affordability, combined with steady job growth, is creating a solid rental base. I’d also suggest taking a close look at the types of renters you’re likely to attract—think about longer-term tenants who value affordability and proximity to work.

One thing I’ve learned the hard way is that smaller markets often reward investors who take the time to get to know local contractors and property managers. Building a strong local team can be the difference between success and a major headache down the line.

PS: Did you know that Charleston, WV has one of the lowest costs of living among state capitals? That can translate into higher yields if you manage your property well.

Hey @James Crothers, glad to hear my response resonated with you! Ohio is definitely a great market for affordable homes, especially if you're looking to diversify your rental portfolio. One thing I’ve noticed is that the Midwest in general offers strong rental yields compared to coastal cities, where property values tend to be much higher but returns are slimmer.

As for local networking, I'd suggest tapping into local real estate meetups, the local chamber of commerce or investor groups. I've personally found those connections to be invaluable when trying to navigate financing options or even just finding reliable contractors. In terms of financing, one thing that might be worth exploring is connecting with local banks or credit unions that are more familiar with the market in Ohio-they often offer more flexible terms compared to larger national lenders.

PS: Here’s an interesting tidbit-Ohio has one of the lowest property tax rates in the country, making it even more attractive for real estate investors. It’s one of those benefits that often flies under the radar!

Feel free to reach out anytime. Always happy to chat more about strategies or anything else related to real estate investing!

Best,
Jasper Juhl

@Ken Chud thanks for your thoughtful reply. I understand your concern-policies like the Tenant Opportunity to Purchase Act (TOPA) don’t directly tackle the immediate issue of tenant quality. The Act, signed into law in October 2023, is more about empowering renters by giving them a chance to buy their rental properties when the landlord decides to sell. It’s not intended to address tenant screening or defaulting issues, and I can see why it might not seem relevant to your concerns about tenant behavior and payment habits

To answer your question,I fully own a couple of companies and hold partial ownership in others with real estate portfolios totaling over $100 million in market value, but I try to keep an open mind and learn from both sides-whether it's through advocating for better tenant practices or working with property managers. You're spot on about security deposits being a practical tool to mitigate risk, especially with applicants who have checkered rental histories. Doubling up on deposits or requiring larger deposits might weed out some of the riskier tenants upfront, though it's not always a foolproof solution, especially in markets where affordable housing is tight.

Regarding your point about double security deposits, you're absolutely right-this can be an effective strategy. However, the Renters' Rights and Stabilization Act of 2024 now caps security deposits in Maryland at one month's rent in most cases, limiting landlords' ability to require higher deposits for higher-risk tenants​. This change makes it harder to use large deposits as a protective measure, which might explain part of the difficulty landlords are facing in managing tenant risk.

As for the post-COVID surge in applicants with problematic rental histories, many landlords across Baltimore have noted similar patterns. The pandemic disrupted rental payments and financial stability for many, even among those who are now back on housing assistance programs. I’ve seen landlords who handle this by requiring tenants to show commitment through actions like attending financial literacy programs before lease renewal, which could help mitigate some of the risks.

PS: If you haven’t already, consider working with local organizations that offer financial literacy workshops for tenants as part of lease conditions. It’s gaining traction in some areas as a proactive approach to stabilize tenant behavior and reduce defaults.

Hey @Neil Narayan, interesting development! It’s no surprise that Elon Musk is shifting some of X's presence to Bastrop, considering the area is already home to major parts of his empire like The Boring Co. and SpaceX. Bastrop, with its strategic location near Austin and cheaper land prices, makes a solid choice for expanding operations. It’s clear Musk is focusing on centralizing his efforts in Texas, where regulations and taxes are more business-friendly compared to California. I’ve seen firsthand how these kinds of moves can impact the local real estate market. Property values around Musk’s projects tend to skyrocket as developers and investors flock in, anticipating a surge in demand for both commercial and residential properties.

A great example of this is what happened in Boca Chica, Texas, where SpaceX’s presence brought significant changes to the local economy and real estate scene. While Bastrop hasn’t seen quite the same level of transformation yet, I wouldn’t be surprised if the area becomes a hotspot for investors and companies looking to collaborate with Musk’s ventures.

PS: Did you know that Texas is currently the state with the most Fortune 500 headquarters, outpacing both New York and California? That’s a verified fact as of 2023, sourced from the Fortune 500 list.

Looking forward to seeing how this unfolds in Bastrop. Keep an eye on that area-there’s a good chance it's about to become a prime investment zone.

Best, Jasper Juhl

Hey @James Crothers, welcome to the community and congrats on setting an ambitious yet achievable goal of owning 10 rental properties in 3 years! Networking with like-minded people is definitely key, and you’re in the right place.

I’ve worked with investors all over the country, including Cleveland, and I can tell you that market is ripe with potential, especially for cash-flow properties. However, the key to getting to 10 rentals lies in strategy. From my experience, here are a few tips:

1. Leverage – You don’t need to buy all your properties outright. Using smart financing like portfolio loans or refinancing after value-add improvements can free up your capital for future investments.
2. Diversify property types – I’ve seen investors get stuck in one type of rental (e.g., single-family homes) and miss out on opportunities in duplexes or small multifamily. Cleveland is especially interesting because you can find multifamily properties at lower entry prices compared to other markets.
3. Network locally – While connecting online is great, building relationships with local realtors, property managers, and contractors can really accelerate your success. I’ve seen firsthand how being plugged into a strong local network can help you find off-market deals or avoid costly repairs.

PS: Did you know Cleveland’s real estate market has some of the most affordable properties compared to other major metros in the US? It’s been consistently ranked as one of the best places for rental yield! 

Good luck, and feel free to ask more questions as you move forward!

@Jason Muesch, welcome to Bigger Pockets! Great to see you're diving deep into real estate research. You're definitely on the right track by focusing on long-term wealth and appreciation while aiming for at least breakeven cash flow.

Now, about the market you're looking at (North Phoenix, Cave Creek, and Surprise): it’s true that finding properties with immediate positive cash flow is challenging right now. But there are still strategies to make deals work, especially with value-add properties. Here’s what has worked for me:

1. Look for distressed or off-market properties: In a competitive market, finding deals requires thinking outside the box. Connecting with local wholesalers or real estate agents who specialize in off-market properties can give you a head start. You might find properties that haven't hit the MLS yet or owners who are more willing to negotiate.
2. The BRRRR method: You mentioned the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy. It's solid, but one key to success is buying at the right price. In this market, the numbers have to be tight from the start—ensure your rehab costs and after-repair value (ARV) support a profitable refinance. One thing that's worked for me is targeting properties that have been on the market for a while, where sellers are more flexible on price.
3. Phoenix real estate meetups: Networking is crucial. The Phoenix Real Estate Club is one of the most active groups in the area. They meet regularly, and it's a fantastic way to connect with other investors, wholesalers, and potential partners. Building relationships here can help you find deals before they go public.
4. Solar panels in Phoenix: A unique fact to consider—homes with solar panels in Phoenix tend to sell faster and at a higher price. According to studies, homes with solar systems in Arizona have seen an average price increase of 6.8%, and they often sell faster due to their energy efficiency benefits, which are highly desirable in the Arizona heat. This could be a long-term value-add you might want to explore.

If you’re in this for the long game, patience and persistence are your best allies. Keep digging, build your network, and make sure your numbers work before diving in.

Best of luck, and feel free to reach out with more questions!

PS: Did you know that Phoenix is one of the top three solar markets in the U.S., alongside California and Texas? Solar incentives can make a big difference here, both in terms of cash flow and property value.

@Stephanie Joe, you're in an exciting position with a new construction home on the way and a potential rental property in the mix! Here's a breakdown of how you might approach your decision:

1. New Loan vs. Refinance: Securing the loan for your new home first could be beneficial, especially if you're planning to rent out your current home. Many lenders will allow you to count future rental income as part of your debt-to-income ratio, which might make it easier to qualify for the new loan. This could help you secure a better deal on your new mortgage, especially with your strong credit score (780+).
2. Current Market Trends: Rental prices are in a bit of a flux right now. While some markets, especially in tech-driven areas like Austin, have seen a drop in rent prices (down 5.6% year-over-year in Austin as of May 2023), other areas are still experiencing steady rental growth. This may impact how much rental income you could expect from your current home​.
3. Concurrent Loans: It’s definitely possible to refinance and secure a new home loan at the same time. Several lenders offer programs designed to help streamline the process. However, you’ll want to compare closing costs and ensure the timing works with your home’s construction schedule.
4. Refinancing Your Primary Home: With your current mortgage rate sitting at 6.75%, refinancing could lower your monthly payments significantly, especially if you can lock in a lower rate. On the other hand, if interest rates are expected to rise, you might want to prioritize the new home loan before refinancing.

I recommend speaking with a mortgage broker who can provide specific advice based on today’s rates and your long-term goals.

P.S.: If you're planning to rent out your current home, keep in mind that many landlords in 2023 are adjusting their rent expectations due to a shift in market dynamics, with vacancy rates creeping up as more rental units come online​(. This is something to factor in when setting your rental price.

Good luck with your new home and feel free to ask if you have more questions!

@Ken Chud, I totally get where you're coming from. Many landlords, especially those participating in Section 8 programs like the Baltimore Regional Housing Partnership (BRHP), have noted a decline in tenant quality over the last few years, particularly since COVID-19. The pandemic has created new challenges, not only for tenants but also for property owners managing housing programs. Background checks revealing failure-to-pays or past evictions have become more common, and you're not alone in seeing this trend in Baltimore County.

One major reason for the deterioration in tenant quality could be the backlog in processing housing assistance applications and increased financial strain caused by COVID-19. Some tenants are struggling to catch up on rent, which has been exacerbated by the expiration of federal eviction moratoriums and local rental assistance programs. According to data from the Housing Authority of Baltimore City, demand for vouchers remains high, and resources are stretched thin. The increased pressure on the housing market may mean landlords see a greater number of applicants with difficult rental histories.

However, all is not lost. Baltimore County has several landlord support programs to help manage this issue, such as the Landlord Leasing Incentive​(HABC). Additionally, you might want to consider working closely with your local Public Housing Authority (PHA) to screen applicants more thoroughly or negotiate higher payment standards for better tenant placements.

PS: Something that may help you: Baltimore recently passed the Tenant Opportunity to Purchase Act (TOPA), which aims to strengthen renters' rights and provide better engagement between landlords and tenants. This might create new opportunities for tenant stability down the road!​

Hey Cody ( @Cody Culberson ),

Sorry to hear about the challenges with your flip! I know how frustrating it can be when a project you've put so much effort into doesn’t move as fast as you'd like. Based on the current trends in Aledo, there are a few things to consider:

1. Market Conditions: The housing market in Aledo is experiencing some shifts. Homes in the area are spending a longer time on the market—an average of 79 days—before selling, even after recent price drops​. While this might suggest a cooling market, the good news is that the sale-to-list price ratio in August 2024 was 100.3%, meaning homes are still fetching very close to their asking price​. It's likely that while the market isn't red-hot, buyers are still willing to pay for the right property.
2. Timing & Interest Rates: You mentioned that you dropped the price after the Fed cut rates, which could have spurred some interest. That was a good move! Rate cuts can bring buyers out, but keep in mind that buyer activity can sometimes lag a few weeks behind such changes. Keep an eye on how other listings in your area are performing over the next few weeks.
3. Presentation: Since you’ve had a few showings but no serious offers, it might be worth reviewing the presentation of the home. Small changes like staging tweaks, updated photos, or even a weekend open house could reignite interest. It’s also worth getting some fresh eyes on the property from an experienced realtor in the area to ensure everything is in line with current buyer expectations.
4. Pricing Strategy: Price drops can be tricky. While dropping the price did generate some showings, it might be worth holding steady for now to avoid the perception that something is wrong with the property. Given that homes are selling close to list price in Aledo, a small adjustment could work, but you don’t want to go too far too fast.

Hang in there—I’m sure you’ll find the right buyer soon!

PS: Did you know Aledo is seeing an influx of buyers from places like Los Angeles and New York? It’s one of the top spots for out-of-state buyers, which could help bring more interest your way

Hey Josh,

Including a bottle of wine as a welcome gift for your short-term rental (STR) is a nice touch and definitely adds to the guest experience, especially since you've seen it work so well in Europe. In the U.S., though, things can be a bit trickier due to varying liquor laws by state and even by county. In Arizona, for example, STR owners generally aren't required to have a liquor license if they're providing a bottle of wine as a "gift," as long as you're not selling it or charging for it. However, you'll want to check your local and state regulations just to be safe. Some areas may have restrictions that could complicate things, particularly around who can provide alcohol and to whom.

If wine isn't an option, you could consider alternatives that are still local and personal, like a handcrafted bottle of olive oil from a local farm or even a basket of locally sourced snacks. This way, you’re adding a personal touch without getting caught up in any potential legal issues. A unique, thoughtful gift can be just as memorable, and it keeps you clear of any possible compliance headaches.

PS: Did you know? Arizona has some of the best wine-growing regions in the U.S., particularly in the Verde Valley and Sonoita areas. If you want to keep the wine idea, you could showcase a local Arizona wine to add an even more personalized, regional flavor to your guest's experience!