All Forum Posts by: Neil Henderson

So, I overheard a guy at lunch today telling his friend he was going to sell his primary home here in Las Vegas because "the market is too over heated. I'm going to sell, take my gains and rent for awhile until the market cools off." If I heard him correctly (I was eaves dropping after all) he said the price to rent ratio in his neighborhood had hit ".5%" and it was "time to sell". I assume that means he could rent a place in his neighborhood for .5% of what it would cost to buy. (I.e. a $200,000 house would rent for $1,000 a month). Seemed extreme to me but got me thinking if there are any RE investors out there who have any similar "time to sell" market indicators; whether it be for an investment property or a primary residence.

I would pay down the high interest debt first before trying to save for real estate investing. Most credit cards are charging you 11-29% interest, guaranteed, without fail. You might find a niche to earn those kinds of returns investing but it's not easy and it's certainly not guaranteed. The debt also limits your financing options. It sucks and you feel like you're missing out on opportunities, but they will still be there when the debt is paid off.

Somewhat related; do any of you use a business credit card tied to the checking account for paying operating expenses? Or do you operate on "cash" only (i.e. checks and debit)?

I've been an AirBnB host for two years @Mindy Jensen and those are some GREAT ideas. My wife and I are pretty lazy about marketing our listing because it does really well without much effort. You're reminding me that there may come a time when competition gets stiffer and we will need to have our marketing chops honed. 

Congratulations @Leigh Ann Smith, your listing looks great! We have talked about the idea of buying some land and putting some tiny houses on it for AirBnB. I look forward to hearing about your experience. Get an professional photographer out there to your place ASAP. You photos are great, but the AirBnB verified listings that have been photographed (for free) by their photographers get a search bump.

Getting a really good understanding of the local laws and regulations regarding short term rentals is very important. There can be unforeseen hotel taxes, required business licenses, etc. Talk to an attorney, or three. Even then, it's such a new industry for some locales that there can be a lot of gray area. 

Check the local paper to see if there has been any discussion about banning short term rentals.

Good luck! It's a fun business and can be very profitable.

Originally posted by @Gunnar F.:

Originally posted by @Robert Melcher:

A training collar that will abate the dog's barking behavior is relatively low-cost and readily available.

Have you suggested it to the tenant?

Thanks, Robert. The tenant denies the dog barks except on rare occasions, never at night or early morning, and asserts the neighbor is persecuting her. Also, she describes herself as a quiet person and describes the loud party allegations as preposterous. 

The neighbor needs to call the police with a noise complaint, not the landlord. You certainly need to do the best you can to maintain neighborhood harmony, but you are not legally (or physically) in a position to judge what is and is not a viable noise complaint. That's the job of the police. 

Do you have any tenant non-compliance clauses in your lease that would allow you to fine the tenant for violating the pet clause?

Disclaimer: I am not a lawyer nor familiar with the tenant/landlord laws in your area.

I would rather mitigate my risk as a new investor by risking 20% of my bank roll on my first deal than risking 100% on my first deal. Use it to fund five deals at $20,000 each and learn from each one. Just my newbie opinion. Good luck.

This is likely going to be the story of a LOT of baby boomers who grew up in the era of the 401k and IRA. A lot of them just did not save enough for retirement or mismanaged their retirement accounts. You have my sympathies. Money and extended family are tough waters to navigate. Reinforces something I remember reading in The Millionaire Next Door; best to not let your family (even your kids) know how much money you have. I would say you are perfectly within your right to tell them, "We are not going to jeopardize our future to fix your problem today that has other acceptable solutions."

Hi Wendy,

I recently saw a presentation from Equistream. I'm curious if you ever got any feedback from BP members about them.

Hi Mike, shoot me a PM and a colleague request.

~Neil