All Forum Posts by: Michael Hyun

In my opinion, the only thing that dictates over-saturation is over-supply and/or lowering demand. There are still plenty of Airbnbs in Johsua tree that make good returns. Maybe those returns are diminishing as more Airbnb's hit the market, but show me a market where that isn't happening. Every market where Airbnb is plausible is seeing a boom in Airbnb's, especially popular vacation markets.

The real question is - "can you beat the competition?" 

I think RemoteLock is the best that I’ve tried is far. I have the RemoteLock set up so that when a guest books my place on Airbnb:

1. creates a guest code automatically that will only be active for the duration of the guest stay

2. Immediately Sends the guest an automated message via AIRBNB app to let the guest know what the door code is and let’s the guest know that the door code will only be active at the checkin time of their stay. 

3. Automatically deactivates and removes the code when the stay is over

@Michael Williams thanks for the rough estimate. What kind of financing options are out there for ADUs? 25% down? Less down? What about DTI restrictions?

CAn someone explain how much actual CASH I need to build an ADU in the Bay area? How much can I finance? Can someone give me a ballpark amount of cash I'd need?

The only problem I'm not facing with this strategy, is that I can't scale cause of DTI! (Hence this forum topic).

I'm thinking now that I might buy a cashflowing property next to offset some of this negative cashflow - build a "hybrid" portfolio.

The main reason I bought in the Bay Area is that I believe in the Bay Area appreciation. Yes, it seems risky-  I know. I'm young enough where I think I can take the gamble - worst case, in 5 years, the rents will eventually cover my mortgage as rents rise and inflation occurs. There could be a crash, and my money will be stuck in this home until the home value ever bounces back.

Best case, the Bay Area continues to increase, and like I've mentioned in other posts, if you've owned a SFR in the South Bay or East Bay (Fremont/Pleasanton) in the last 5 years, your home value has gone up significantly - at least 300k - 700k. I ask myself constantly - how long would that have taken with a $2000 cash flowing property in the South/Midwest - 15+ years? From my knowledge, homes are still 100k-200k there. They will probably be somewhat similar in price in 5 years.

This is a gamble for sure - it goes against all BP fundamentals. But if the Bay Area repeats history, I'm hoping that I can cash out my equity (without 1031) at a later date and maybe convert to a cash-flowing portfolio.

 This was the answer I knew was coming but I didn't want to admit was the truth. haha

@Jon R. right across the street from Joe Michell k-8. It was a 3b3a home - I offered 960 and it appraised for 995! Not sure how often that happens but I got lucky.

On a side note, my laptop was just stolen in Oakland this past weekend. I thought about Oakland, but that made me think about it a second time.

@Brian Fitzgerald are any of those locations good for traveling nurses by any chance? Location is paramount for MTR...