All Forum Posts by: Stone Jin

@Jared Smith We have condos, sm MF and SFR

@Remington Lyman More than I have fingers and toes.

We've been practicing 1 and 2 for the last 10 years and it's pretty amazing when you look back at the wealth that was created with a little luck, a little sweat and a little patience.

Good to see another OHIO and ARIZONA investor. 

@Harsh R. We invest in cashflow, so appreciation is less of a factor.  I think in recent year, purchase price has gone up much higher than rents and rents are likely to hit a ceiling before the sales price.   I think volitility in purchase price are very sub market based.  Right now, the values in Phoenix markets is still trending up despite Covid, where I invest in Ohio has more or less flattened.  

I'm not sure if you recall, in 2009 houses in Phoenix lost 50-70% of their value during that time period, where Ohio probably went down the national average of 20%.  Right now Phoenix is in a strong position due to boomers and Californians moving in, but you can't cashflow from rentals.  Your exit strategy will dictate what's the best course of action.

@Harsh R.  I suppose it boils down to what you want out of your investments.  If you are looking for appreciation over cashflow then certainly CA markets are more in tune with that strategy.  We prefer cashflow so the midwest is a better choice for us.  Within each submarket there is a premium to be paid for less risk.  Where I invest in the midwest there are rough neighborhoods where houses rent at 2-3% rule, where I invest in a submarket where I get a healthy 1-1.25% but are rewarded with better tenants and slight appreciation.  

However in the current climate, Phoenix you would be lucky to get .6% on a sfr, most are break even after debt service with 20% down.  

@Harsh R. I'm not sure you are protecting your appreciation if you are buying in the same market in the same asset class.  I buy in Northwest Ohio.  I grew up there and know that area fairly well.  Not a sexy market, but I invest for cashflow so there is plenty of that where I invest.  I understand your standpoint as I look at my puny return on equity on my properties in AZ and wonder if I should liquidate.  

I look at supply and demand, where I invest in Ohio, there is virtually no inventory in my chosen asset class and a lot of demand, so if I can buy right, it will be rented quick.  

@Harsh R. after doing the exchange does your return on equity increase?  Unless there is a significant increase you are just buying more headaches. More doors does not mean more profit.  Over the last 3 years I’ve been 1031 exchanging from the Phoenix metro to a city in the Midwest where my return on equity doubles or triples.  Granted the large majority of our properties are still in Az. I just haven’t been buying in Az in the last few years. 

I think it is a good time to sell in Phoenix and we will continue to prune our portfolio.

We did it for a similar size house in sylvania for just under 4000. I would do it to attract better tenants. Since this is a rental arv shouldn’t be that much of a concern.  Rather could you get an extra 50 bucks a month. If you can that’s a roi of 15% on a 4000 investment

Yes we remodeled a 3plex all throughout March April and I’ve rented out 2/3 of unit with end of May move in.   I did a video walkthrough of the unfinished units as first pass for showing.  If they wanted to see after in person then I would schedule a time but most people are happy with the video 

@Jim K. I have that covered, my wife's family has some hardcore Russian Orthodox members.  Might not be a bad idea to just send my mother in law there first! :)

@Account Closed Love it, use Airbnb guests as guinea pigs.  If they can survive the night, so can I!!!