All Forum Posts by: Justin Brin

it's a good question, i really don't know what it means long term. but a lot of homeowners already own and have perfectly affordable mortgages. the affordability crisis doesn't impact them.

That's correct that for existing owners the impact is minimal but for new buyers they are going to have an issue.

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Quote from @Julie Smith:

Quote from @Justin Brin:

Quote from @Julie Smith:

Quote from @Justin Brin:

Quote from @Julie Smith:

Does anyone have any insight into whether a Timeshare restriction would apply to renting out a condo unit as an Airbnb? Their CCRs do not allow timeshare, but says nothing specifically about AirBnbs. Thoughts? Thanks

I guess the best is to ask the HOA directly if you are not sure? Make sure you get a reply in writing to avoid future issues.

Thanks. Yes, that was my thought too, but I didn't want some secretary (another resident, not a management company) to give me knee jerk reaction when they don't have any legal knowledge.

I believe many HOA will not like short term rentals. I think most people do not want to live near a short term rental. So you want to be 100% sure they allow it and not find out after you bought it that they do not allow it.

Yes, I totally understand, but if the CCRs don't mention short term rentals then I feel like I should be able to do with my property what I want, but yes, best to know ahead of time.

I know of cases where people bought a house in a none HOA location and the neighbors fought against the short term rental until the owner gave up and turned it into a long term rental.
I guess you need to always make sure you have good guests to make sure the neighbors don't complain.

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Seattle, Washington

Quote from @Julie Smith:

Quote from @Justin Brin:

Quote from @Julie Smith:

I guess the best is to ask the HOA directly if you are not sure? Make sure you get a reply in writing to avoid future issues.

Thanks. Yes, that was my thought too, but I didn't want some secretary (another resident, not a management company) to give me knee jerk reaction when they don't have any legal knowledge.

1 Vote

Seattle, Washington

Quote from @Julie Smith:

I guess the best is to ask the HOA directly if you are not sure? Make sure you get a reply in writing to avoid future issues.

2 Votes

Seattle, Washington

If you look on the median house cost vs median income you notice an issue.

House median cost is going up exponentially while income is only going up linearly.

What this means? Only the rich will be able to buy an house? Only rich investors will be able to go into real estate investments?

Data source:

Median House price: https://fred.stlouisfed.org/series/MSPUS#0

Median income: https://www.census.gov/data/tables/time-series/demo/income-p...

1 Vote

Another issue with automated algorithms is that they have limited data on the house. A house can be in a great area but if the block the house is in doesn’t look good then the house value will go down since it’s less desirable but Zillow will never know about it only someone that goes there in person will know.

On the other side if the area is not so good but the house is in a nice block with nice houses the value of the house will be higher even if in both cases the subject house is the same condition.

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Los Angeles County, California

@Sol Naim zestimate is not accurate. Usually they also give you a range of value. What range it gives you?

What I will do is search Zillow for recent sold houses in your area that are similar to your property. Try to match to properties that are in similar condition to your property and calculate the median. That will be closer to your property value.

Since zestimate is an automated algorithm it has to guess some factors and sometimes it misses. Maybe since you got a deal on the house it’s assuming it’s in bad condition and is matching it with lower house values.

Doing your own search can give you a more accurate results then an automated algorithm.

2 Votes

Los Angeles County, California

Quote from @Steve S.:

I have 2 rentals and i would like some feedback on how you would rate my metrics etc and any suggestions of what i could / should be doing next.

Rental 1

- Built 1998, 2600 sq feet, half of a duplex, very nice finish out, 2 story, all bedrooms upstairs, 2 full bath upstairs, 1/2 bath downstairs

- Acquired in 2016 for $330,000.

- Current value $570,000

- Current rent $3300

- Mortgage $230,000 at 3.75% (23 years left)

Rental 2

- built in 1978, 1800 sq feet, B to C+ type property but best property in the neighborhood, 3 bedrooms, 2 bath, no garage (converted to man cave / family room)

- Acquired in 2016 for $130,000

- Current value $270,000+

- Current rent $1800

- Mortgage $60.000 at 3.75% (23 years left)

Both have long term tenants locked into longish term leases (netx 2 years or so)

Any thoughts? Feedback? Suggestions?

Should i pay off as soon as possible? never pay off?

They seem to me as good investments. You doubled your equity in like 7 years.
Great cashflow. Great job!

Do you have to go there often to do repairs or not much?
Did you need to fix them up or you bought them turnkey?

It looks like you doubled your net worth.
I personally will not pay them off and just buy new properties and use the cash you saved for down payments on new properties. This way you can build more equity on new properties and get wealthier 💰

1 Vote

Fort Worth, Texas

@Jeffrey Daniels In your opinion you don't think there will be an issue with water supply?

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Phoenix, Arizona

Quote from @V.G Jason:

Quote from @Justin Brin:

Since prices in Dallas TX are lower than Phoenix AZ. Where will you prefer to invest lower class area in Phoenix AZ or higher class area in Dallas TX?

Assuming you want to invest a max of $350-400k where will you choose and why?

Just from that question-- Dallas, TX. I'd prioritize quality over quantity if it's long term appreciation goals, with mitigating cash flow. However, knowing those two areas I find that a bit hard to understand.

You do not find higher class Dallas in that range, and you will find that in an okay class in greater Phoenix. With that said, as you already mentioned Texas has very high property tax.

Some areas are fighting it and on the verge of winning(Houston) and I think that follows through with other massive metros but take that as a bonus not an underwriting note. As a whole, I would take Texas over Arizona, but not by that much. And I am a big fan of Texas. For the record, I am invested in both states and in both of those areas. Larger in Texas, myself personally. Brother who started this in early 2000s is heavily in Arizona, but recently more of a Texas guy himself FWIW.

For what specific reasons you prefer TX?
What part of TX you think is the best for investments?

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Phoenix, Arizona

All Forum Posts by: Justin Brin

Justin Brin has started 29 posts and replied 163 times.

Post: House cost vs income issue

Post: HOA not allowing Timeshares, but is AirBnb etc Timesharing

Post: HOA not allowing Timeshares, but is AirBnb etc Timesharing

Post: HOA not allowing Timeshares, but is AirBnb etc Timesharing

Post: House cost vs income issue

Post: Zestimate dropped dramatically after rental purchase

Post: Zestimate dropped dramatically after rental purchase

Post: Rate my rentals

Post: Arizona Limits Construction Around Phoenix as Its Water Supply Dwindles

Post: Where will you invest lower class area in Phoenix AZ or higher class area in Dallas?