Data can be skewed (or viewed) to prove nearly any point.
The dangerous part is that the average person is naive enough to go with it.
No surprise. Airbnb/vrbo/short term rentals can be brutal. Any profit does not cover the assumed expenses. From a consumer standpoint, I often love them. From an investor standpoint, I would tread very carefully. You really have to be in the right area AND be able to attract the right clientele…otherwise the juice isn’t worth the squeeze imo.
Multi unit, low income, or retirement properties is where it’s at. Purchase the right property, complete some low cost value adds, cash in a few rent checks…then sell for a small profit and do a 1031 exchange. Rinse and repeat.
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Agree. It is like saying that it is now okay for anyone to park in Disabled parking spots if they “feel the need to”.
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The landlord should ask for the bill to exclude them for the renter’s pet liability and require the renter to have their own, I’m not interested paying for pitbull mauling. Not every home insurance wants to cover dangerous breed.
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Newsom at it again
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Commercial is great, You pay for nothing not even your own property taxes.
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That is a lot more than I would have guessed, but the breakdown of those 16 million vacant homes makes more sense.
It’s a pain to deal with. 98% of “emotional support animals” applications we get are for aggressive breeds that practically no landlord accepts because they are prohibited by most insurance policies. Have to get my insurance broker to run quotes to document that it would cause “undue financial burden” to deny those ESAs.
Same issue in Philly with their ridiculously pro-tenant laws. Tenants can snip a few wires in the smoke detectors, call in a L&I complaint to get a violation put on the property. Then they don’t allow access to the unit for repairs or re-inspection until the landlord’s rental license expires. Couldn’t evict for a long time during covid, and once rental license expires, you can’t evict until you get a new license, which requires, you guessed it, no L&I violations. Landlord friends I know n NYC say that they sometimes have to pay squatters $15-$25k for a cash for keys agreement to get them to leave… Apparently that is still cheaper than lost rent and legal costs to actually evict them.
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I had to pay someone in Philly $15k for keys. The govt paid me most of it back as I put in a Covid claim for unpaid rent from that tenant so basically I just gave him that money. Better then being out both rent and cash for keys money but it’s still a horrible system.
Being a landlord in the 70s in Philly must have been so much better. Give Rocco and Tony $200 and they evict the next day.
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Yeah – definitely not the worst situation to be in for Philly.
Had to do an eviction in Austin last year. Took around 2 months because the judge for my precinct leaned more towards tenants and gave the tenant a couple extra weeks to pay up. Was out around $7k when all said and done, including legal fees, missed rent payments, cleaning/junk removal, etc, which isn’t too bad in the grand scheme of things.
Found a news story about the tenant… apparently the day after the eviction was carried out, she stole a $1.5m boat in FL with a couple other people and were cruising around the Bahamas and eventually got arrested in Belize for shoplifting.
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Rocco DiMeo? From Essex County?
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Its the jaaaaacckkkeettttttttttt
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I can’t complain I had hundreds of tenants over the years and never had to evict once. Covid is when all the problems started and once I had everyone out of my houses I sold them. Took a huge tax hit but my peace of mind was worth it. Looking at your phone every morning when you wake up seeing what issues happened the night before was anxiety inducing. I wasn’t big enough to hire management as they would take all the profit.
I had a good niche market of renting to young professional mostly men. 5-6br houses were getting 12-15% cap rates back then. I bought a triplex for $275k in Manayunk that I put 50k into. Got rid of the yard and added 7 off street parking spaces. That house alone grossed 7k/mo and my mortgage was around 2k. I lived in one of the units through college and had a solid income for the other 2 units. Def was the best way to get ahead. Those type of deals don’t exist anymore. I used $10k of student loan refund checks and credit card debt to buy it, I was fortunate enough to have a parent willing to cosign though.
Every young persons first home should be an owner occupied duplex or triplex using an fha loan. Eliminating your personal housing expenses is the single easiest way to financial freedom.
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I’ve been shopping for a rental property in the Philly area and this is kind of discouraging.
Honestly this place is just killing any hope I have in life, rentals, Etron GT, EQS, everything.
Honestly the pricing just doesn’t make sense there anymore. I still follow the market, manayunk section especially and there’s no cash flow.
Something like this needs to be in the low 300s and pray that rates come down and you can refi later.
You were house hacking before it became cool 
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I was in a real estate group with the founder of bigger pockets in 2003. He started doing what I was doing too, not that I had an original idea people have been doing that for awhile. But he implemented it and started a website about it and blew up!
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It’s a tough time to get in right now without some money, but deals are out there. Not as many cashflow deals, but seeing some equity gain deals that break even month to month. Not ideal, but my last house I bought was $90k under market value and needed $28k to make rent ready.
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That’s awesome! It’s crazy how Biggerpockets got over the years. Definitely learned a ton from those forums when I was in school and it really helped me get started with investing in real estate when I was finally out of school and was making some money. I know my parents said that house hacking was a big thing in NYC when they immigrated in the 80s/90s too.
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I have friends that bought anything and everything in west Philly, greys ferry areas in 2010-2015 and they’re absolutely flush now. Greys is so close to center city I wish I had the foresight and balls to invest in that area but it was a huge headache dealing with tenants in those areas. Now they renovated all the houses and the hipsters moved in and are paying triple the mortgage payments.
Same thing happened in fishtown, port Richmond lower Kensington areas. Amazes me what people pay for rent to have junkies literally shooting up on their stoops.
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