All Forum Posts by: Jay Hsu

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

Thanks for the SF insights! Dropping some data I have been looking at as well which I'm sure everyone is aware of.

What do you think this will do to BRRRR or turn key long term renting for cashflow? Are rentals also suffering and having to lower rents?

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Evan is right, I have been deep diving and analysing the STR market for a while now and you quickly come to realize that a decent home and location for LTR doesn't at all equate to a successful or profitable STR. STR's require immaculate staging, marketing, and appeal to younger, high-earning audiences who will happily pay $300-500 / night for a "unique experience". The opportunity for outsized profits versus LTR always exists, because it requires much more work in terms of marketing, maintenence, cleaning. Think of it more as being an owner-operator of a small hotel if anything, it's much more of a hands-on business.

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Hi All,

I became aware of this group from reading Long-Distance Real Estate Investing by David Greene. I have always been fascinated by real estate, having been a former RE salesperson in NJ and NY. I have excellent role-models in my own family of first-generation immigrants who have invested in RE decades ago and now enjoy total financial freedom before retirement. However, these were done in the NYC metro area long ago which I believe is too difficult for a beginner to start in.

My partner and I now find ourselves in a strong financial position to start our RE investing journey and have set our sights in New England, specifically Rhode Island due to the excellent natural environment and our desire to ultimately relocate there long-term. I'm aware this bucks the trend of investing in OH, FL, etc. but I think (and hope) positive cash-flowing deals can be found with the right connections.

Our goals are as follows:

1. BRRRR and hold for cash flow SFR or Multi-Family homes via conventional financing (multi decade time horizon)

2. Build RE portfolio as part of diversified retirement plan (goal of one property per year to start)

3. Identify high quality opportunities (homes with good foundations and structure that will last 30+ more years)

4. Build a team of professionals to work with pursuing mutually beneficial goals (Agents, Contractors, Property Managers, Lenders)

I look forward to meeting more members here and learning more about RE investing in the area. Thanks for reading!

1 Vote

Warwick, Rhode Island

All Forum Posts by: Jay Hsu

Jay Hsu has started 1 posts and replied 3 times.

Post: Is a huge real estate crash coming soon?

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