All Forum Posts by: Bryan Christopher

@Adam Stanton mentioned bubbles in select markets. I live in LA and I can tell you it feels every bit as ridiculous now as it did back in 2006. I'm getting ready to sell my primary into an absolute feeding frenzy of buyers snatching up limited inventory at idiotic prices. The downside... I have to find a place to buy or rent, and it's just a total S-storm. Bidding wars on everything and now.... for the first time in my life, I'm seeing bidding wars on rentals in my area. (Burbank, CA)  We called (late apparently) on a rental that had just gone on the market yesterday and were told there were 3 bidders already in the running, two of which offered to pay 6-12 months in advance. (Which I'm not even sure is legal in CA.) It honestly feels crazier here now than the mid 2000's bubble-days... because at least then there was inventory. It's so limited now, people are fighting like animals to overpay for homes. That said... there's no easy funding anymore. These aren't stated income buyers. These are all real people with actual jobs and legit loans.  So... is it a bubble here?  The last bubble was so because it was propped up with imaginary financial stilts. This one doesn't seem to be. But... any time I see homes (like mine) increase 40+% in value in 3 years... I'm treading cautiously. 

But... I have family in St. Louis, MO where the market has done very little in years. So, I think it's highly market-specific, as Adam said. 

@Phillip Dwyer - I'm headed to Vegas the weekend of the 30th and hope to have a better feel for the neighborhoods. Right now my understanding is still very macro, but honing in quickly thanks to help from my friends there and great people here like Jason, Tiger et al. 

My goal has been to stay under 125K for my first property and I want to stay in an area I'm comfortable with. Of course, if it doesn't make sense... I won't do it. I'm not going to do a deal just to do a deal. But, it seems most SFR's in or right around Summerlin are 2x-3x my budget. Since this is a buy and hold, I'm trying to hedge by keeping my initial cash outlay as small as I can, allowing for rookie mistakes, etc. But, I do understand the downside with condo investing as well.

I love the input, thanks Phillip... and this is what it's about. Honing this process until the most logical option makes itself apparent...

@Tiger M., unless I'm looking at the numbers wrong, that's still a pretty robust growth rate for Clark County. 

You guys are the best, thank you. 

Hey all, 

Longshot here perhaps, but does anyone happen to have a good site/source for tracking population trends and/or income trends in certain areas?  In particular I'm looking in the Summerlin Las Vegas area, but I'd also be curious to cross-check them against other potential areas of interest. 

Thanks in advance for any leads and be well!

*appealing

I love the concept, Tiger. It's appearing to me for where I am in life. (40s) The thing that does concern me is if there are any issues with vacancies... that's a hefty holding cost (for me) because I don't have cash flow from other properties, yet. It feels to me like buying for pure equity would better suit me after getting a couple of cash-flowing properties in place first, not to mention 155K about 50K over where I'd like to start with this first property. I'm coming at this with all personal cash outlay for a while, and I've only got so much. 

Point is well-taken, though... and it's an angle I'll be considering going forward. 

Again showing that there are no stupid questions. Somewhat surprised, I'm more than fine staying under 100K with this first investment. 

Management is running about 10% on average there?  With first month going to them for filling the place?  This is generally the vibe I've gotten from asking around...

Invaluable info @Phillip Dwyer  and @Jason R.  ...  thank you so much. Seriously. 

With regards to 3 and 2 bdr units... obviously it's always better to have 3. What kind of price ratio, rent-wise would you extrapolate to the two... with regards to those areas? 

(i.e. some areas, 3 bd.'s are gold, some there isn't quite the demand, etc.) 

In other words with a (likely) cash-flow intention... am I best going 3 bdr or bust.... or if not, what % price difference would you consider for a 2 bdr that would bring a equitable amount of rent instead? 

Thanks @Rob Beland

Great idea, actually. I think a mix of that and the 50% rule would give me a great way to eyeball potential properties until I get a natural feel for it. Next step is for me to find some investors who might be willing to open up their books a bit and show me their expense break-down. (In my price range/area preferably.) 

Thanks man!