All Forum Posts by: Kevin Kim

Quote from @Eliott Elias:

Put them on a month to month lease. 

With month to month lease, how long a tenant can stay without paying rent? I think even with month to month lease, if tenant decide to stay without paying rent, eviction might take more than one year.

By the way, is it rare that a tenant who abusing eviction law?

Quote from @Nathan A.:

This guide to tenant screening might help.

 Thank you very much!

I’m going to buy a mobile house, and will rent.

However I worry that tenant might don’t pay rent.

I heard many horror story which tenant didn’t pay rent for 2 years.

I wonder if there is a way that I can prevent possible nonpayment issue?

I was thinking to STR to same tenant every months.

However I guess it might be illegal

I think getting a good credit score tenant might be the only way.

Please share how you do.

Thank you.

By the way, Is those area safe?

I saw many houses are in desert alone in couple acres land, and it is far from other houses.

So in slow season, if there is no person in a house, then I think a theft can break in and steal easily.

Also in those isolated environment, person in house can be victim of robbery easily too.

Are those crime happen in the area?

OR, Is there a way to prevent those crime?

Thank you. 

Quote from @Jason Kudo:

Thank you very much. It was very helpful to figure out!
By the way, can you let me know where will you invest in those area If you invest about $250,000 for either STR and LTR. I guess JT might be the best place for STR, however like you said, it is not good place for LTR. And I think it is safer to invest for an area where we can do both STR and LTR easily.
Also, if there is cap, it will be good for homeowner who can get the permit before City stop issuing permits. And I guess it might increase a value of house. 

@Jason Kudo

Thank you very much. It was very helpful to figure out!  

Quote from @Tyler Solomon:

Quote from @Kevin Kim:

Quote from @Tyler Solomon:

Quote from @Ryan Moyer:

Quote from @Kevin Kim:

Hi,

Today, I saw there are many listings in Joshua tree, Twentynine palms, yucca valley, etc.

I know real-estate market is slow. However if they do good STR business, then there is no reason for them to sell their house.

Can someone let me know if there is an issue for property in those area?

I guess it became red ocean(too many airbnb), and demand might be decreased, or permit issue?

Thank you. 

 Firstly, there are plenty of reasons why a lot of people would be selling properties even in a strong market.  Gatlinburg remains very strong, and you can find a ton of properties listed there.

Secondly, however, is that yes Joshua Tree does seem to be a bit oversaturated as much of its demand boost was as a temporary covid market (not all of it, but a lot), and I would imagine some people are trying to get out of that market now.  I don't actually own there, but that's the impression I've gotten.

I would second what Ryan has stated here. I know that the city was aiming to crack down on STR permitting in that area as you highighted. Joshua Tree is a very cool and unique area to visit, however i do believe that the market there has become a bit saturated. I know many lenders are starting to take a more conservative approach to lending in areas as such. Best to reach out to someone in the area who operates out there.

Do you know if it is easy to LTR in the area?
Even tough we can't do STR in the worst case, if we can do LTR, it should be fine. 

Can you do it - I am sure it is possible, but finding financing for such might be a struggle depending on the route you choose. If you choose to go the DSCR Route, it will likely be hard to qualify as cash flows will be limited and likely below a 1.00x unless you put a significant amount of money down into the property, which will lower your debt service costs.
 

I'm thinking to do cash for around $250,000 house.

I thought it might be good time to find a nice house at a discounted price.

However I was not sure about how STR and LTR works.

By the way, can we still get a permit easily in JT?

..

I just found that an article about climate changing  in JT

"By the year 2100, 80% of the iconic plants will be gone in the national park that straddles the Colorado Desert and the Mojave Desert, according to recent studies. "

If 80% of Iconic plants will be gone, then I guess it will affect STR and LTR a lot.

Quote from @Tyler Solomon:

Quote from @Ryan Moyer:

Quote from @Kevin Kim:

Hi,

Today, I saw there are many listings in Joshua tree, Twentynine palms, yucca valley, etc.

I know real-estate market is slow. However if they do good STR business, then there is no reason for them to sell their house.

Can someone let me know if there is an issue for property in those area?

I guess it became red ocean(too many airbnb), and demand might be decreased, or permit issue?

Thank you. 

 Firstly, there are plenty of reasons why a lot of people would be selling properties even in a strong market.  Gatlinburg remains very strong, and you can find a ton of properties listed there.

Secondly, however, is that yes Joshua Tree does seem to be a bit oversaturated as much of its demand boost was as a temporary covid market (not all of it, but a lot), and I would imagine some people are trying to get out of that market now.  I don't actually own there, but that's the impression I've gotten.

I would second what Ryan has stated here. I know that the city was aiming to crack down on STR permitting in that area as you highighted. Joshua Tree is a very cool and unique area to visit, however i do believe that the market there has become a bit saturated. I know many lenders are starting to take a more conservative approach to lending in areas as such. Best to reach out to someone in the area who operates out there.

Do you know if it is easy to LTR in the area?
Even tough we can't do STR in the worst case, if we can do LTR, it should be fine. 

Hi,

Today, I saw there are many listings in Joshua tree, Twentynine palms, yucca valley, etc.

I know real-estate market is slow. However if they do good STR business, then there is no reason for them to sell their house.

Can someone let me know if there is an issue for property in those area?

I guess it became red ocean(too many airbnb), and demand might be decreased, or permit issue?

Thank you.