Real Estate Crash thread

[skaredshtles]

Seen in Moab recently - Coloradans are the new Texans.

Also seen in Wyoming. And Montana.

[Name Redacted]

Seen in Moab recently - Coloradans are the new Texans.

Attachment 399881

Is that 2000 house development still happening south of Moab?

Interesting, but I feel like the sticker implies that it is someone who is from CO telling everyone else to go home. I mean, you would need to live in CO to get a CO plate.

[babybear]

Also seen in Wyoming. And Montana.

saw one floating around here for awhile that said “I bet you were cool in Colorado”

[snowaddict91]

saw one floating around here for awhile that said “I bet you were cool in Colorado”

Saw a few of those the last time I was in JH. Gave me a good chuckle.

[juanrogera]

I'm about to have the cash to buy my first investment property. Likely somewhere between Driggs/Bozeman/Cooke City (I'm in Bozeman). I'm curious though, with all the doom and gloom about skyrocketing prices and potential rate hikes, how many of you who own rental properties would pull the trigger on your first one right now?

I echo the sentiment of @goldenboy. Go for it, with one caveat.

I've gone from 0 doors to 6 doors in the past 12 months, putting as little down as possible with all properties cash-flowing between $500 to $1,800 net per month as residential rentals. More in the pipeline for the first half of 2022. Rates won't increase rapidly overnight, and personally, so long as a property cash-flows I don't care if I'm paying an inflated price in the current market. I'm not in real estate to profit from a fix-and-flip or from selling in a couple years on the assumption that property values will continue on the current upward trajectory. My strategy is to hold property for the long-term so long as they are cash-flowing.

Caveat: If you're primarily going for the AirBnB/VRBO vacation rental route, and there otherwise would NOT be interest from long-term residential tenants, then I'd be a bit more reluctant. If folks start to tighten the purse strings vacation travel will be one of the expenses most households cut. Accordingly, investors relying solely on short-term rentals in vacation destinations that otherwise cannot support their investment (i.e. make mortgage payments), who are also leveraged without cushion will be the ones to feel the hurt if the status quo changes.

[ötzi]

Interesting, but I feel like the sticker implies that it is someone who is from CO telling everyone else to go home. I mean, you would need to live in CO to get a CO plate.

Yeah that's what I got out of it too but i was too lazy to type it so thanks.

[goldenboy]

I echo the sentiment of @goldenboy. Go for it, with one caveat.

I've gone from 0 doors to 6 doors in the past 12 months, putting as little down as possible with all properties cash-flowing between $500 to $1,800 net per month as residential rentals. More in the pipeline for the first half of 2022. Rates won't increase rapidly overnight, and personally, so long as a property cash-flows I don't care if I'm paying an inflated price in the current market. I'm not in real estate to profit from a fix-and-flip or from selling in a couple years on the assumption that property values will continue on the current upward trajectory. My strategy is to hold property for the long-term so long as they are cash-flowing.

Caveat: If you're primarily going for the AirBnB/VRBO vacation rental route, and there otherwise would NOT be interest from long-term residential tenants, then I'd be a bit more reluctant. If folks start to tighten the purse strings vacation travel will be one of the expenses most households cut. Accordingly, investors relying solely on short-term rentals in vacation destinations that otherwise cannot support their investment (i.e. make mortgage payments), who are also leveraged without cushion will be the ones to feel the hurt if the status quo changes.

I'm jealous! Where are you buying?

[fastfred]

saw one floating around here for awhile that said “I bet you were cool in Colorado”

can someone mail me one of these for my van
it'll go good with my "Breckenridge what they hell happened" sticker

so yes a civil war over who is the bigger d-bag and who lives in a more rad locale and who is more of a billy bad ass definitely see it happening
I'm pretty sure I don't give fuck what people think of me

[juanrogera]

I'm jealous! Where are you buying?

All right here in New Mexico. There are other locales I've considered that meet the criteria for my formula, but being somewhat local to the properties is important to me as I'm currently the primary manager/care-taker.

[altasnob]

being somewhat local to the properties is important to me as I'm currently the primary manager/care-taker.

This is the key to anyone who wants to get into rental property. If you use property management, you will piss away all your profit. If you have the time and skills to be a landlord, go get it.

[liv2ski]

To cash flow in San Diego requires 30% down typically, so good for you juanrogera

[zion zig zag]

Dumb question, if real estate prices tank, won’t rents follow?


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[liv2ski]

Dumb question, if real estate prices tank, won’t rents follow?


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Between 08 and 2012 my rents went down just a little if even, as people were losing their homes and needed a place to live, so rentals were still in demand. Over the last 18 months rents have gone ballistic.

[Toadman]

There's a bumper sticker I've seen in Bend that says, "Defund Visit Bend"

[Toadman]

Dumb question, if real estate prices tank, won’t rents follow?


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Only if all those houses are turned into rentals. Bottom line, it comes down to supply and demand. If there's a downturn in housing prices, it doesn't necessarily translate into reduced rental prices. Rents would be more impacted by a bunch of apartment buildings coming on line, than a drop in the housing market.

[skaredshtles]

This is the key to anyone who wants to get into rental property. If you use property management, you will piss away all your profit.

Yup. And why I've always said FTS to owning rental properties...

[sirbumpsalot]

This is the key to anyone who wants to get into rental property. If you use property management, you will piss away all your profit. If you have the time and skills to be a landlord, go get it.

Not true...sorry.

[muted reborn]

Interesting, but I feel like the sticker implies that it is someone who is from CO telling everyone else to go home. I mean, you would need to live in CO to get a CO plate.

it goes both ways, that's why it's funny. If someone in UT has the sticker on the car, they mean go home to Coloradans. If a Coloradan buys it and they are in CO, it means go home to others. If that CO vehicle goes to UT, then it's an ambiguous self-own. Either way it's elitist bro douchebags trying to be clever, because why tell people to go home when we all vacation somewhere else?

[dunfree]

Dumb question, if real estate prices tank, won’t rents follow?


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rents are more correlated with the local job market, or the vacation market, so no. Cratering real estate increases the rental yield.

[Yukonrider]

Not true...sorry.

Not un true though.

[liv2ski]

Agreed

[goldenboy]

Not true...sorry.

Yep. Plus I'm a softie, if a tenant says "I'll pay the other half next week" I probably let it slide. The property managers job is to say that's great, but rent is due in full or we can start the eviction process. Not to mention they ideally have their own in-house handyman and great contractor relationships.

[liv2ski]

Yep. Plus I'm a softie, if a tenant says "I'll pay the other half next week" I probably let it slide. The property managers job is to say that's great, but rent is due in full or we can start the eviction process. Not to mention they ideally have their own in-house handyman and great contractor relationships.

Not true. My next door neighbors house is managed by a property mgr. Their in house services are a rip off as are their fees, but if you're not local to handle stuff yourself you sadly have to pay to play. If you have rentals and live along ways away, have a list of services for the tenant to call when shit goes sideways and do your own management is my take but YRMV.

[zion zig zag]

Rents would be more impacted by a bunch of apartment buildings coming on line, than a drop in the housing market.

We have a literal fuck-ton of apartments in the pipeline right now in Ogden. They must be needed because run of the mill studio apartments are going for 1100-1300 a month right now.

[Name Redacted]

I’ve been STR and LTR guy, never used a property manager. And this has been my side hussle for about a decade. Not always fun, but it makes a little extra scratch for me to buy skis and motorcycles and stuff and put something away for retirement. If ya live in a ski town and want to retire someday I feel like ya gotta do something, hold down some property and work the STR system stuff. Someday I’ll sell it all and move to the desert.