All Forum Posts by: Matthew Forrest

I would think the downside of being closer to the freeway would mostly be more noise, but I can't imagine there would be much of a noise reduction benefit for the attached ADU. In general I do not like the JADUs because of their smaller size and additional restrictions around renting them out. I would prefer to build as large of a detached ADU as possible.

@Jairo Martinez For clarification, is this property something like a duplex where there is a detached garage on the property? Do the tenants use the garage? Also what city is this in?

@Alex S. The stock market was my first investing interest and I have dabbled in a variety of investment vehicles so I'm relatively asset class agnostic. In your case the first thing I would look at is viability of the long term hold, if you cannot afford or are not comfortable with committing capital to this property every month,  sell it and move on. Regarding the selling the property, in my opinion it doesn't matter where you bought it. Would you feel this way if you bought the condo for $100k. We're not psychologically wired this way, but financially it only matters where the market is going and not where its been.

Every decision we make without 100% certainty is a bet. Are you willing to bet that return on the capital you have in this property will outperform other investments (RE in CA, RE out of state, stocks, bonds, bitcoin, sports cards)? If so, stick it out. If not, again, sell and move on. 

For context, I like Southern California real estate long term, but I don't like the SF Bay Area and I wouldn't buy a condo in most places.

@Ronak Patel Awesome! When do you break ground on the new ADU?

@Zane Petty I love your plan, but buying a property in LA, building an ADU (especially ground up) and renting to tenants is a lot of steps and is difficult to do without much capital. It might not be something you want to do, but you could absolutely get into a home with a conventional 5% down loan to house hack and continue to build capital. If you maintain or reduce you live costs you'll be shocked how quickly you'd be able to stack cash to build the ADU or buy another property.

@Vi Nguyen Sounds like a win to me! Way to do your due diligence!

@Erick Paley I graduated from Lehigh University and I can tell you that the student rentals PRINT money when there are actually students attending school in person. Now might be a good time to see purchase properties from landlords that are having trouble getting parents to pay.

@David VanWert Wow she's gorgeous! Do you offer discount to BP members?! Just kidding. Sounds like your numbers are extremely strong and I bet vacation markets will significantly outperform pre-COVID projections when its all over. Thanks for sharing.

@Anthony Marshall Cashflow is possible to find, but I believe that taking action as soon as possible is more important than finding the perfect deal. I agree with @Jon Schwartz in that you want to change what you consider to be a good deal or "have potential." Regardless, I bet that this won't be the first property you buy. My first deal was arguably a bad deal at the time. Two years later, strong rental demand and wild appreciation have made it the next best thing I've ever invested in from a returns perspective besides $AAPL, $TSLA and bitcoin. 

@David VanWert Could you share or link to some more details on your mammoth property? I love the mammoth area and see so much potential, but the view into how much money people make monthly on STRs up there is pretty opaque.

@David Brooks Just curious, if you've had success in Lake Arrowhead and spent time getting to know the area well, why would you branch out to those other communities instead of doubling down on Lake Arrowhead?