All Forum Posts by: Jon Martin

Wow, Yikes lol! Guess that makes more sense . . . Although I wouldn't put it past someone in Florida to preserve a snake in epoxy for decorative purposes (no offense to Floridians!).

1 Vote

Quote from @Jim Bray:

You can tell that the real-estate market is tanking when real-estate

agents start returning your calls six months later after you left them a

message regarding a property. Last month the number of new home loan

applications dropped to a 22 year low. Its is turning into a buyers

market. Property values will plummet by 40% by September. Lack of

available affordable homeowners insurance, 6 to 8% mortgage rates and new

insurance requirements that require roofs to be below 15 years old will

stagnate the market like the mortgage debacle back in 2008. This time

the government will not be able to float the note for homeowners who are

upside down.

Source for 40% drop figure?

Also- I don't recall the government "float(ing) the note for homeowners" in 2008.

0 Votes

Quote from @Michael Plante:

What about snakes

would that be a hard pass for anyone here?

Is that epoxy’d into the wall? 😂

0 Votes

Quote from @Account Closed:

It seems that you have almost haphazardly acquired some very nice rental properties. By that, I mean your decisions have been based on a journey through life and not a journey to personal jets and fancy hats. Your decisions moving forward should be based on spreadsheets and not emotion. Here’s what I would do:

Get an Option to purchase the 3-acre site. This will free you of some stress and give you time to put everything else together.

Sell the dream home. It isn't making much money—not even enough to cover cap-ex reserves—and 1031 it to pay cash for the 3-acre lot plus another investment property based entirely by spreadsheets—leverage it at 75% LTV. Paying cash for the 3-acres will make it so you don't have to refinance your house and deal with moving property lines, zoning changes and stuff until you have to. At they end of the day, you will have remained within you and your husband's LTV comfort level and your cash flows will be higher than they are now. Start buying future investments using your current RE cash flows plus a portion of your business income to turn the 3-acre houses into rentals and lease the rest of the land to raisin farmer or something. You might be able to rent the big refrigerator to someone, but I would let renter pay for to get it running and put it on a separate meter so you don't have to pay the utilities. I see all this as a 2-year project, so don't buy anything else for a couple years. After that, start buying rentals based purely on spread sheets and leverage them—never borrow against or sell what you currently own.

I agree with all of this from purely an investment standpoint, however I got the impression that this is their “forever home”?

1 Vote

San Diego, California

Quote from @Rodney Sums:

Quote from @Garrett Gruss:

Has anyone had any success with a murphy bed such as this one? I'm considering putting one in a living room, and I'm wondering if they are viable or are a liability.

Im one of those worst case scenario people and would consider something else especially if this is a STR

@Rodney Sums would you still worry about a wall bed that is only around waist level in height like the one in the link?

0 Votes

Dallas, Texas

Quote from @Bill B.:

@Jon Martin

Ps. Are you saying inventory is up to a 6 month supply, a balanced market? Realtors in vegas are “bragging” we’re up from 1 month supply to 1.5 months. Like they don’t remember a 3 month supply is still a seller’s market. (A doubling of inventory from the new up 50% rate.) I went to an open house this morning with no signs, behind a locked gated community entrance and there was no available parking. For a $600k home.

@Bill B. I'm not sure if you would call it "6 month inventory" however I am talking a several fold higher number of listings. For a good part of 2021 and into this year, I could count all of the SFRs in San Luis Obispo that were not contingent/pending at any given time, at any price, on 2 hands. Up to $1.5M sometimes 1 hand. Now I can see 30 under $2M and around a dozen that are <$1M.

Prices are still absurd and out of reach for most, but at least there is inventory now. Looking at some of the higher square footage homes in the area and thinking of ways I could split out an ADU to use as an STR and use the rest of the house as a primary.

2 Votes

Quote from @Bill B.:

Looks like inventory is going to dry up and prices will skyrocket. Nobody wants to sell and give up their 2-3% interest rate.they aren’t even applying. The only people selling will be people with paid off properties buying something else. Hence no increase in supply.

Try telling someone selling their $400k house to buy a $500k house will double their payment. Or heck, even buying a different $400k house will cost them $12,000+ per year in extra interest, an extra $1,000/mo payment with no improvement, after they pay $24k to sell. No thanks they’ll say.

I’m seeing a lot more inventory as of late in my home market (Central Coast CA) however it is all on the pricier side ($950k-1.5M). Seems that those are holding higher end properties, likely 2nd (or more) homes, are wanting to unload them knowing that the “peak” has just been passed. High DOM too. Or maybe they are/were high priced remote salaried workers who were called back to the office or laid off as companies start to tighten their belts? Who knows, but I’m finally getting excited about the prospects around here.

Great properties for someone looking to upgrade, but way too high for most entry level buyers. However I do agree that the inventory for entry level to mid range could get worse.

2 Votes

Honestly, all of those properties sound like slam dunk holds. Based on when you bought them and refi'd, I think it would be pretty hard to ever generate properties with those types of numbers, especially your LTR numbers.

There should be a way to utilize the existing equity you have to make this work. I would hold on to all of it.

2 Votes

San Diego, California

Quote from @Robin Simon:

Quote from @Jon Martin:

Clif notes or examples of how the "categories" on AirBNB is impacting STR owners?

I think too early for solid takeaways but just in general to be less dependent on airbnb with direct booking options/know how

I understand that this is a potential solution. What I'm wondering is if the new "categories" feature is actively driving people away from more traditional listings. I don't think too many families log in to AirBNB looking for a beach house or ski condo and end up booking a treehouse shaped like a giant caterpillar, although for some segment of the market I guess that could work.

1 Vote

For which state? The way property taxes are assessed varies widely by state and even between neighboring counties. The sale of a property will likely trigger a new assessment.

Where is gets really confusing is when there are "mill" points/rates, which can have multipliers and extra assessments for non-owner occupied properties. Usually the estimate displayed in the listing is based on owner occupied.

1 Vote

All Forum Posts by: Jon Martin

Jon Martin has started 32 posts and replied 969 times.

Post: QOTW: What are your "hard pass" items when evaluating real estate

Post: Should you Invest in this Market?

Post: QOTW: What are your "hard pass" items when evaluating real estate

Post: HELP! Need direction on which property to refi for next BRRRR

Post: Murphy Bed, cash-booster or liability?

Post: Mortgage Demand Plunges to Lowest Level in 22 years

Post: Mortgage Demand Plunges to Lowest Level in 22 years

Post: HELP! Need direction on which property to refi for next BRRRR

Post: Takeaways from STR Wealth Conference in Nashville this past Week

Post: How to figure out exact Property Tax on property for sale