All Forum Posts by: William Arrington

Your mixing STR and MTR.

Slow. I spent way to much time getting one of my AIRBNBs up because I've been extremely busy in other parts of my life. The good news is that its finally almost done. The kitchen is being installed on the 20th and I have a few smaller projects to tackle. I am hoping to have the house up a few days after the counter install which will prob be around the 1st. I also pulled back on my plans to buy another soon. I am going to sit on my cash until home prices and interest rates finally match each other again unless I find a good BRRR. Always looking but no rush at the moment

I think its a good thing and I know there are a few people around my STR's that have been skirting this in a few ways so it balances the playing field.

Thank you all for the quick replays.  The wood stove that's in there is just black with no windows.  After reading what you guys wrote I think  I am going to go with something simple with a glass front.  There are no lines run for gas so I would have to completely retrofit the fireplace for that and have a tank on the outside of the house.  My area is pretty competitive so anything I can do that will give me over the edge is going to be done.  It's one of the reasons I did the kitchen renovation.  A lot of the kitchens in the area leave people wanting and look cheap.  So I did hardwood cabinets with quartz.  

The current home I am working on has a Wood stove and wanted to know if this has ever caused an issue with one of your properties.  The one that is there is kind of ugly and I was originally going to replace it with an electric unit which would take me a few hours to fabricate but the more I thought about it... the more I think I should replace it with a more aesthetic unit instead that burns wood.  You are in the mountains after all.  If I post clear instructions on the mantle on how to use it and the front glass face closes and locks do you think i could get away with this or should I just swap it out for electric which doesn't have the same appeal?    Getting close to being done with this unit (my kitchen was on backorder for 4 months so I've been eating the mortgage) and just need some advice to push me over the finish line

Seems mixed.  Everything near the water right now costs over a million but seems to rent well.  Going farther inland your still 500k range for anything nice (3 to 4 bedroom) with pool and the rentals rate and price does not seem to justify it.  Obviously, this was a quick look as a courtesy because I am bored at work waiting for someone so I can do my job so double check if I am right but a 500k house should not rent for $200 when you have a pool and are less than 10 min from the ocean.  

Quote from @David Wild:

Im considering selling my primary residence to pay off 3 rentals. I would be able to rent a house for the amount of rental income I would receive if they were paid for. This would allow us to use all our day job income to completely pay off a 4th rental within 2 years. Then the plan would be to save money for a down payment on a new primary residence  the following 2 years. At that point we would have about 5k in passive income to make our mortgage payment. If the market started to go crazy I would probably  sell the 4th property and buy a primary  residence sooner. Looking for pros and cons. Thank you.

Another option would be a hybrid of what was listed above. Sell your 3 rentals if you have enough equity then 1031 them into a small apartment around 8 or 12 units. Then use a heloc to repair/upgrade what needs to be done on said property. Its monopoly at this point.. houses for hotels. Then after the repairs and rent increases, you can basically do a BRRR paying off your heloc and you now have your home and a 8 to 12 unit apartment that is pure cashflow.

Quote from @Leslie Anne Morris:

Quote from @Michael Baum:

I hear ya @William Arrington. I really don't consider CA the wild west. It is a different animal all together. You really can't base all other western states by what happens in CA.

In Idaho where our lake house is, there isn't any restrictions where we are at. This year was the first year our little town required registration. It was $35 and zero issues getting it.

I understand that by buying in established STR areas (like Pigeon Forge) you take less risk as things have been sorted for years and there might be more risk in other areas where STR's are a new thing.

I just don't think it should preclude buying in up and coming areas.

You never know the next big thing right!?  

 Pay attention to local elections.  You might want to go to a few and you might be able to start the regulations and keep them fair.  What you dont want is for them to adopt a homestead-type policy because it could ruin you.  In places, where that has happened people, could no longer afford their properties because it basically says 1 or 2 things of the following.

1.  You have to live at the property you rent out and limit it to 90 days a year.

2.  You can only rent the property for 30 days a year.  

3.   Existing owners that have permits could be exempted which would make your property cash cows but its rare.

Basically.. you want to be part of the conversation because if people on the other side of the argument start it... you're done.  

Quote from @Joel Polanco:

Hi All,

I am selling my primary residence in Gibsonton, FL (about an 20 mins away from Tampa) because I just got a new job and I'm moving. The comps for my SFH is $386,000. Originally I listed it for $392k and..... crickets. On 8/7/22 I reduced the price to $374k and I've gotten some showings, but still no offers. The house has been on the market for 24 days now and I am getting somewhat impatient because I am moving on 9/2/22. Should I reduce the price further? What's the best way to get the house sold? Also, I do have a real estate agent.

Joel

My brother inlaw just sold their house and the price they got was amazing so all of a sudden 2 neighbors decided they would use his as a comp and try to sell also.  Crickets.  He was right before the last rate increase and the market shifted a lot in the last 90 days.  I think your agent wasn't keeping track of what was happening and screwed you on accident with the 392k listing.  Now, your going to be with the surrounding properties with a reduction.  Pretty sure I found your property... I would paint that blue wall white again.  Other than that is shows well in pictures.  Your issue is... these are all the other properties that also reduced price around you.  

This is the owner's conundrum.  Do you keep the rent lower than market with a reliable tenant or do you slowly raise it up?  Do you actually think they would leave at $200 more.. would they leave at $100.  You probably have to do the 90 day notice (required if they have been there for 2 years) and see if they leave during that time.  It does cost to move so there might be a number they would agree to and in some places you can still show a property even with tenants still in it (not sure about new york though).  If the property is good and does not need alot of work you could have someone in within a month of them moving out