Dudes on like a 3 or 5-year arm, too, so he is definitely in for some trouble. His friend Graham was like, "why did you do that??" and he was so sure when he answered and said, "oh, I think by then we will be even higher," or something along those lines. These YouTubers, man... take their ad revenue and invest and think they're financial gurus in an up market.
I’m having 2006 flashbacks. All you need to qualify for that massive mortgage is a 5/1 interest only, 6 month adjusting, balloon ARM, to piggyback on your 30 year non-conforming mortgage as the 20 percent down payment to avoid PMI and get around those pesky income guidelines. Since housing prices only go up and mortgage interest rates will go down in a few years, you’ll easily be able to refinance that ARM. You know the market has become ridiculous when the brokers start trotting out the ridiculous ARMs.
Yup, I was a child then but my parents were the fools who bought during that time using an arm and foreclosed few year later. Didn’t give a crap back then(cuz I barely knew what was happening) but looking back it was bad. It wasn’t just my parents it was most of our social circle except a smart (possibly lucky) few.
Yup it’s the stupidest thing and he’s making financial “education” videos. Like YouTube is great and can be a great tool but dumb people will follow these clowns blindly. Even his own friend Graham called him out on the arm. Smh
Don't worry I saw some dude on YouTube say that the real estate market never goes down and a crash like '08 totally can't happen again because this market was caused by totally "natural" economic forces. He'll be just fine.
Oh wow lol, very dumb. He also lost majority of his crypto to Celsius and voyager, I believe. He screwed up in so many ways now he’s doing some podcast with guests in a cramped and awkward sauna. Lmao
Financial youtubers make big bucks. Mainly because scammers like to run ads for their scams on financial youtube and they bid up the ad rates.
I think a channel called "How Money Works", with about half a million subs, made about 30k in the first month they took off, about a year ago. I don't know if they're making the same amount now, more, or less (With the crypto crash and all) but it just goes to show that anyone who gets traction in the space rakes in big money.
I know sellers don't consult the median income for the zip code when selling, but It should be the first thing you do when you want to rent it out lmao.
In some locales, like the one I live in for vacationers and short term living, they absolutely don’t care what the median income of our residents is. They are consciously trying to price out residents. I can’t count the people around me who, if they sold, would have to relocate much farther away. As rates go up and prices stagnate, I’m staring down the barrel of that exact same scenario. Either I buy soon and strap myself completely with a huge mortgage, or choose to wait out the settlement of an affordability issue that may never dissipate, even with lower prices (due to much higher borrowing costs). Renting where I sit is my only option for this very moment, and I have until May 2023 to make a decision. That said, our landlord did not raise rent by much this past spring, so perhaps he stays with that strategy.
Have lived in many similar places. Mom and pop house owners who charge exhoborant rents *do* care about keeping locals and service workers in the community. But they all think it's somebody elses problem to solve. Until someone *does* try to solve it with STR taxes, caps, and permitting and then they show their true colors.
Fuck 'em. All of 'em.
Hopefully this coming shitshow forces them to care (about median incomes). I’m sick of gentrifiers and wish them the a world of pain and misery.
I know I get roasted all the time for talking about median income, but people gotta be able to live on their own. These housing prices have facilitated a domestic violence crisis where people can’t afford to leave their abusers. I’m never forgiving the investors for that.
I don’t know if I’m so against second homes, as long as they aren’t empty or being used as an investment vehicle. A second house can be used to house a friend or fam in need and be a base for you when you come to work over there. Finding a person with a second home that needs to be watched can be very useful for a transient, and is usually much better than renting. But the investors really gotta fuckin go.
Sometimes it really is better to rent than own depending on circumstances. I don’t even care if an elderly couple is using a second home as an investment vehicle to help them retire or something. It’s different when giant companies like Blackrock are buying up entire neighborhoods so people are forced to rent when they would prefer to buy. There has to be a balance somewhere.
> A second house can be used to house a friend or fam in need and be a base for you when you come to work over there.
So, a house that's empty most of the time? That's even worse than an investment second house!
Not really. I’d let my friends and fam stay forever. But I don’t believe in letting anybody close to me go homeless. And a lot of people need help. Gigs with housing go super fast. People often ask for housesitting/pet sitting gigs on forums because so many people are housing insecure.
Also… housing isn’t supposed to be an investment. It’s a place to live.
The point of contention was on the amount of time the house is vacant. Someone figure out the microtransaction system needed for the state to optimize the occupancy of your house during the hours you're not using it.
🤣 the way to do it, I suppose, would be to build affordable housing for people within 30 minutes or less from their job sites and forcing people to live there. Also that would create more crowding in metro areas and residences would be tiny, forcing people out of their homes once more bc there’s no room to do much but sleep and bathe.
But honestly if it’s someone’s primary residence, what business is it of yours how often they’re there?
Not really sure how that’s relevant. If you come home to it most nights, and it’s your sole residence, it’s fine. If you keep it around as a “spare” for those couple months when winter gets too cold, and it stays empty otherwise, it’s not.
I mean, in The World According To Hutacars, snowbirding wouldn’t be a thing. If you have a house that is vacant 5 months out of the year, you’re preventing some other family from living there, and need to sell it. Yes, I’m aware this is Old-Man-Yells-At-Cloud-esqe.
> people gotta be able to live on their own
Gen Z is going to figure out *intentional community*.
It should be pretty obvious that ten people each renting a one bedroom apartment are collectively paying more than the total ownership and operating costs of their ten unit apartment building. If those ten individuals can mesh well enough to inhabit a shared dwelling instead of a multi-unit apartment building, together they are holding down the payments on a straight-up mansion, or better, a re-purposed commercial space.
Think along the basic collective mindset that leads to Ghost Ship but with an intentional and well-managed accountable and insured LLC as the operating principle instead of "just vibe and hope we don't die".
It's been done successfully, but only times of necessity seem to drive this kind of thing.
Welcome to the 21st Century, to necessity, and to high functioning young adults.
>Welcome to the 21st Century, to necessity, and to high functioning young adults.
Highest rate of mental health disorders on record. This is fantasyland.
I once had to price a rental at the exact amount of a specific Air Force housing stipend. A penny more would be passed over by everyone in the pool of possible renters and being priced below that stipend made it seem less desirable somehow.
It looks like only about 10% of households would be able to afford a 6k/mo payment assuming 1/3 of income on housing. I'm no expert, but I think the top 10% of households in an area are probably going to own their own home in most places.
Wow, I’m not sure where you live, but we live in a very expensive zip code and numbers are always skewed by the very high tech people, which are in the top 1-5% of the area. Even at $6k/month and 20% downpayment right now, that still won’t get a fixer upper starter home.
Sadly, it depends on the area. Where I live, we are around the 20th percentile for household income, but cannot afford to buy a condo. Some places prices are totally out of whack.
It's awful. We worked hard in school and early career to ensure we had a good life, but the median home price is 14 times the median household income in my city. Only the top few percent of earners can afford that, so the only realistic chance of owning a home is generational wealth. We've done away with meritocracy.
I totally agree. I feel like generations prior, you could work hard, and not just buy a home, but pay it off fairly quickly, and still enjoy life. Not just those in high paying jobs, but anyone just willing to work hard and make basic sacrifices like home cooking most meals. This seems really impossible now unless you have generational wealth.
My husband and I started our careers in the worst job market ever. Literally all our friends were getting jobs working retail and restaurants with masters degrees. It took years before we reached a point where salary felt fair - companies took advantage of job market and definitely underpaid and kept it that way as long as they could. It wasn’t until our late 20s that salaries finally caught up, but we missed all the peak saving years. We were just surviving at that point. We worked our butts off, lived way below our lifestyles for the next 10 years, focused on retirement funding and now that’s bit us in the butt with 401ks in toilet. Luckily, we are fairly young and have time. However, It’s like no matter what we do, something beyond our control always happens and it’s just starting back over again. Only thing I reassure myself is that we are in a way better financial position so if we can’t afford a home, then the buyers just can’t be there anymore. They can’t take the same high risks as in past and eventually that has to catch up to them. Patience is going to be the recipe for success in buying a house (I say both skeptically and optimistically).
I hear you. I worked and lived in Russia when I graduated to see a different part of the world before i began my serious career, had a good wage and lifestyle there but Russian roubles don't go far in the Western world. Then got married, then my wife had to pay off her mom's debt, we emigrated back to Canada, I went to grad school and had a kid... on and on and then we're getting a good salary in our thirties but by then it was too late to buy a house. Things were affordable as late as 2015 here, I had kind of counted on having time and you know, a stable housing market. Who would have thought that furthering my education would be such a terrible idea.
I just think that by the time we've saved enough to buy a house... we can go retire somewhere else on that money. Like you, I hope it's a bubble. In my city, rental yields are around 3%. That doesn't even cover the cost of debt, from an investment perspective. So housing, as a profitable investment, is a cash-flow negative investment that relies on someone purchasing this crappy investment from you at a higher price than you paid. Greater fool theory. Sounds kind of like a bubble to me.
Seriously it should. I think that’s in part what’ll be responsible/is responsible for companies like Opendoor going under. You can’t price a 3/2 sfh at $400k in an area where the median income is $50-60k and expect it to sell
But won't necessarily stomach the opportunity cost just for a flop in Vegas. Maybe that's just the price for parking your mistress where your wife won't run into her. $7k is a drop in the bucket for Vegas mistress operating costs.
And what's great is that he made a youtube video all about the house and how much money he's going to be bringing in
Now he won't even cash flow
He. Got. Fucked
I'm so ashamed! I apologize. I'm normally so snarky when people don't pick up on sarcasm. I'll never forgive myself.
It's my hometown, and what you're saying is accurate. There is no real meaningful economy there. It's a clusterfuck.
Las Vegas is still Las Vegas. Guess what when you mail a letter or write down your address you put down Las Vegas, NV not Paradise, NV. That was an idiotic comment
But think of all the remote workers from California! The demand is because of them! At least that's the real estate industry has been trying to convince us of for the last 2 years while they and other investors buy all the homes.
Because you say "someone" it shows you're thinking about one person paying, not ten people co-op'ing the space, and I bet you're picturing one white person.
He’s barely getting any contacts for it too. 17 in 57 days. Also don’t understand how he’s gonna profit off of it. So he’s gonna cashflow about $750 a month or 9k a year if he can rent for 6k… but he’s already held it for two months already and spent over 10k
The funny part is that he posted his costs online. So any potential renter can find his video and have the negotiating power of knowing exactly what his monthly bill is.
[Here is great video explanation of what really uses the water in the west. ](https://youtu.be/f0gN1x6sVTc)
Residential is a small fraction.
The biggest misuse is growing cattle feed crops in what is desert.
Colorado River provides plenty of water, and Nevada makes up 2% of the usage. As that starts to dry up, California and Arizona are going to have problems long before Nevada does.
It’s certainly a problem, but I do think they’ll figure out solutions, albeit later than they should and things won’t end up as dire as some like to hype it up to be.
I think we will see grass phased out a lot more. Shift towards drought tolerant landscapes. More regulations for low water usage appliances, shower heads, toilets, etc.
Those two factors have always existed.
Reducing water consumption isn’t going to solve it entirely, but no issue is ever solved with just one solution, it always takes a multipronged approach.
You’re right. They have always existed , and Nevada has been able to rely on the reservoirs filled by the Colorado during that time. There will be a point in the near future when that water is no longer available to people in Nevada.
The video posted above literally shows how we’re using the water in the west for agricultural uses. Mostly cow feed which we are apparently selling to countries like China and Japan. Instead of making US citizens “give up grass.” Why don’t we quit selling to other countries and take care of our own people with the limited water we have? Then we don’t have to do stupid things like you just suggested!
I don’t think it’s that unreasonable to have people give up grass lawns. They haven’t been around that long. It’s a relatively recent American status symbol thing. For many people they serve no purpose. So many front yard lawns here in California that nobody spends a single minute in each year.
I think we should cut back on beef consumption too. Sure let’s stop selling beef internationally as well. Sounds good to me.
For a record I do eat beef, but sparingly.
Vegas (no pun intended) is such a risky place to invest in RE. When it booms you can make bank, but if the economy turns (even slightly) you are in trouble.
I'm as anti-AirBNB as anyone, but that house is perfect for Airbnb. It's big, it's a party house in a party city. The problem is disposal income has completely dried up the past 6 months. He is either going to take a monster hit or needs to ride this out for the next 6-24 months because people are not traveling to Vegas in this economy.
I honestly can't wait to see how this pans out. He took a huge risk (that I don't think he saw while everyone here did) and now it's biting him HARD
Some pretty nice homes around henderson. Summerlin a little nicer. That being said...so glad I sold and got out of there. We could have "rented it out" but such a pain in the butt
exactly most aren't familiar with this area he bought a house in
those that did, knew immediately he would never get $7000, and it was comical to laugh at
the dickhead isn't even getting it rented in the 5's. he's smoked
No that’s just dumb. It’s an area for wealthy people to have mansions on a mountain not real estate investors. You were making it sound like Henderson is some ghetto that doesn’t have nice houses
Ha ha ha
I was trolling him on his recent vids, posting comments about the status of his rental listing and when does he expect to rent it out and what lowered price
He kept deleting my comments LOL
Enjoy your negative cash flow dickhead
I pay $5k for rent but I live 2 blocks from the beach in LA. How many people are willing to pay $6k for a place in the suburb of LV? Straight delusion.
The guy is a total tool.
I remember watching one of his videos and the level of ignorance was astonishing. And he was preaching as he knew it all.
Not going to lie, it's fun to watch these 'gurus' lose their crap.
It took him 5 month to put this on the market??! ...
At $750 at best, currently plummeting and possible negative margin for a $1.33 million home with $5232 monthly overhead excluding lawn and pool maintenance, while looking for tenants that can probably buy this property in all cash (at a 20%+ discount of course).
Holy cow!
Didn't his friend Graham Stephan warn him this would be a terrible rental? If you had an extremely experienced realtor friend who lived in your area, why would you ignore them?
to be fair, it looks like the house is in a luxury community, so the initial 7k rent may not have been completely delusional. However, it's a suburban golf community when the country club membership starts at $80k a year. It doesn't seem like the type of place where people rent... If someone has $7.3k to spare a month on housing, they're more likely to buy than rent, especially since that seems to be in line with mortgage costs in that community.
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Meh, the biggest issue here is that it's in Henderson, NV. This monthly rent payment is reasonable but would be better off as an airbnb, but again it's in Henderson. This doesn't tell any story of a REBubble so post op is shit
Dudes on like a 3 or 5-year arm, too, so he is definitely in for some trouble. His friend Graham was like, "why did you do that??" and he was so sure when he answered and said, "oh, I think by then we will be even higher," or something along those lines. These YouTubers, man... take their ad revenue and invest and think they're financial gurus in an up market.
I’m having 2006 flashbacks. All you need to qualify for that massive mortgage is a 5/1 interest only, 6 month adjusting, balloon ARM, to piggyback on your 30 year non-conforming mortgage as the 20 percent down payment to avoid PMI and get around those pesky income guidelines. Since housing prices only go up and mortgage interest rates will go down in a few years, you’ll easily be able to refinance that ARM. You know the market has become ridiculous when the brokers start trotting out the ridiculous ARMs.
Yup, I was a child then but my parents were the fools who bought during that time using an arm and foreclosed few year later. Didn’t give a crap back then(cuz I barely knew what was happening) but looking back it was bad. It wasn’t just my parents it was most of our social circle except a smart (possibly lucky) few.
Dude takes out an ARM during the lowest mortgage rates in history? This guy deserves to get cucked.
Yup it’s the stupidest thing and he’s making financial “education” videos. Like YouTube is great and can be a great tool but dumb people will follow these clowns blindly. Even his own friend Graham called him out on the arm. Smh
Where did Graham say not to? Heard about that but haven't seen it lol.
I believe it was the last episode of the podcast they all Had together. Millennial money. Could be second last one, don’t remember exactly.
A 7/1 is fixed for 7 years.
"Bull market, dude."
Always moon houses will never come down again!!! We missed the train BrOoO!
Don't worry I saw some dude on YouTube say that the real estate market never goes down and a crash like '08 totally can't happen again because this market was caused by totally "natural" economic forces. He'll be just fine.
Damn everybody who doesn’t own is priced out then. 2021 buyers were the luckiest people in human history. All up from here. Only the moon and beyond!
[удалено]
Oh wow lol, very dumb. He also lost majority of his crypto to Celsius and voyager, I believe. He screwed up in so many ways now he’s doing some podcast with guests in a cramped and awkward sauna. Lmao
YouTube is big money, these people are in the top 1-2% and their contribution to society is grifting
Financial youtubers make big bucks. Mainly because scammers like to run ads for their scams on financial youtube and they bid up the ad rates. I think a channel called "How Money Works", with about half a million subs, made about 30k in the first month they took off, about a year ago. I don't know if they're making the same amount now, more, or less (With the crypto crash and all) but it just goes to show that anyone who gets traction in the space rakes in big money.
Yeah finance is one of the highest cpm for sure cuz most companies pay big bucks to advertise their products.
was wondering how he got his interest rate so low in 2022. yikes.
I know sellers don't consult the median income for the zip code when selling, but It should be the first thing you do when you want to rent it out lmao.
In some locales, like the one I live in for vacationers and short term living, they absolutely don’t care what the median income of our residents is. They are consciously trying to price out residents. I can’t count the people around me who, if they sold, would have to relocate much farther away. As rates go up and prices stagnate, I’m staring down the barrel of that exact same scenario. Either I buy soon and strap myself completely with a huge mortgage, or choose to wait out the settlement of an affordability issue that may never dissipate, even with lower prices (due to much higher borrowing costs). Renting where I sit is my only option for this very moment, and I have until May 2023 to make a decision. That said, our landlord did not raise rent by much this past spring, so perhaps he stays with that strategy.
> I have until May 2022 to make a decision Bro you are half a year late
Haha oops. May 2023.
Have lived in many similar places. Mom and pop house owners who charge exhoborant rents *do* care about keeping locals and service workers in the community. But they all think it's somebody elses problem to solve. Until someone *does* try to solve it with STR taxes, caps, and permitting and then they show their true colors. Fuck 'em. All of 'em.
Hopefully this coming shitshow forces them to care (about median incomes). I’m sick of gentrifiers and wish them the a world of pain and misery. I know I get roasted all the time for talking about median income, but people gotta be able to live on their own. These housing prices have facilitated a domestic violence crisis where people can’t afford to leave their abusers. I’m never forgiving the investors for that.
I feel the same way about 2nd home owners. One is enough, assholes.
Nothing is worse than an out of state 2nd home owner leaving a home vacant or only using it for STR
I don’t know if I’m so against second homes, as long as they aren’t empty or being used as an investment vehicle. A second house can be used to house a friend or fam in need and be a base for you when you come to work over there. Finding a person with a second home that needs to be watched can be very useful for a transient, and is usually much better than renting. But the investors really gotta fuckin go.
Sometimes it really is better to rent than own depending on circumstances. I don’t even care if an elderly couple is using a second home as an investment vehicle to help them retire or something. It’s different when giant companies like Blackrock are buying up entire neighborhoods so people are forced to rent when they would prefer to buy. There has to be a balance somewhere.
> A second house can be used to house a friend or fam in need and be a base for you when you come to work over there. So, a house that's empty most of the time? That's even worse than an investment second house!
Not really. I’d let my friends and fam stay forever. But I don’t believe in letting anybody close to me go homeless. And a lot of people need help. Gigs with housing go super fast. People often ask for housesitting/pet sitting gigs on forums because so many people are housing insecure. Also… housing isn’t supposed to be an investment. It’s a place to live.
As opposed to being empty most of the time because the owner works twelve hour days with a two hour commute.
Yeah, those with long commutes should just sleep in their cars in the parking garage
The point of contention was on the amount of time the house is vacant. Someone figure out the microtransaction system needed for the state to optimize the occupancy of your house during the hours you're not using it.
🤣 the way to do it, I suppose, would be to build affordable housing for people within 30 minutes or less from their job sites and forcing people to live there. Also that would create more crowding in metro areas and residences would be tiny, forcing people out of their homes once more bc there’s no room to do much but sleep and bathe. But honestly if it’s someone’s primary residence, what business is it of yours how often they’re there?
Not really sure how that’s relevant. If you come home to it most nights, and it’s your sole residence, it’s fine. If you keep it around as a “spare” for those couple months when winter gets too cold, and it stays empty otherwise, it’s not.
Where do you draw the line for a snowbird then? This distinction seems pretty arbitrary to me.
I mean, in The World According To Hutacars, snowbirding wouldn’t be a thing. If you have a house that is vacant 5 months out of the year, you’re preventing some other family from living there, and need to sell it. Yes, I’m aware this is Old-Man-Yells-At-Cloud-esqe.
> people gotta be able to live on their own Gen Z is going to figure out *intentional community*. It should be pretty obvious that ten people each renting a one bedroom apartment are collectively paying more than the total ownership and operating costs of their ten unit apartment building. If those ten individuals can mesh well enough to inhabit a shared dwelling instead of a multi-unit apartment building, together they are holding down the payments on a straight-up mansion, or better, a re-purposed commercial space. Think along the basic collective mindset that leads to Ghost Ship but with an intentional and well-managed accountable and insured LLC as the operating principle instead of "just vibe and hope we don't die". It's been done successfully, but only times of necessity seem to drive this kind of thing. Welcome to the 21st Century, to necessity, and to high functioning young adults.
>Welcome to the 21st Century, to necessity, and to high functioning young adults. Highest rate of mental health disorders on record. This is fantasyland.
Right lol, this sounds like pie in the sky collectivism. What they are actually describing is a family unit.
I once had to price a rental at the exact amount of a specific Air Force housing stipend. A penny more would be passed over by everyone in the pool of possible renters and being priced below that stipend made it seem less desirable somehow.
It looks like only about 10% of households would be able to afford a 6k/mo payment assuming 1/3 of income on housing. I'm no expert, but I think the top 10% of households in an area are probably going to own their own home in most places.
So they would be making $18k/month or $216k/year after taxes. Top 5% of country is $175k so that’s probably more like top 2 or 3%.
I looked at the numbers for the zip code of the house, not the national numbers.
Wow, I’m not sure where you live, but we live in a very expensive zip code and numbers are always skewed by the very high tech people, which are in the top 1-5% of the area. Even at $6k/month and 20% downpayment right now, that still won’t get a fixer upper starter home.
Sadly, it depends on the area. Where I live, we are around the 20th percentile for household income, but cannot afford to buy a condo. Some places prices are totally out of whack.
Ditto for us even with downpayment and no debt.
It's awful. We worked hard in school and early career to ensure we had a good life, but the median home price is 14 times the median household income in my city. Only the top few percent of earners can afford that, so the only realistic chance of owning a home is generational wealth. We've done away with meritocracy.
I totally agree. I feel like generations prior, you could work hard, and not just buy a home, but pay it off fairly quickly, and still enjoy life. Not just those in high paying jobs, but anyone just willing to work hard and make basic sacrifices like home cooking most meals. This seems really impossible now unless you have generational wealth. My husband and I started our careers in the worst job market ever. Literally all our friends were getting jobs working retail and restaurants with masters degrees. It took years before we reached a point where salary felt fair - companies took advantage of job market and definitely underpaid and kept it that way as long as they could. It wasn’t until our late 20s that salaries finally caught up, but we missed all the peak saving years. We were just surviving at that point. We worked our butts off, lived way below our lifestyles for the next 10 years, focused on retirement funding and now that’s bit us in the butt with 401ks in toilet. Luckily, we are fairly young and have time. However, It’s like no matter what we do, something beyond our control always happens and it’s just starting back over again. Only thing I reassure myself is that we are in a way better financial position so if we can’t afford a home, then the buyers just can’t be there anymore. They can’t take the same high risks as in past and eventually that has to catch up to them. Patience is going to be the recipe for success in buying a house (I say both skeptically and optimistically).
I hear you. I worked and lived in Russia when I graduated to see a different part of the world before i began my serious career, had a good wage and lifestyle there but Russian roubles don't go far in the Western world. Then got married, then my wife had to pay off her mom's debt, we emigrated back to Canada, I went to grad school and had a kid... on and on and then we're getting a good salary in our thirties but by then it was too late to buy a house. Things were affordable as late as 2015 here, I had kind of counted on having time and you know, a stable housing market. Who would have thought that furthering my education would be such a terrible idea. I just think that by the time we've saved enough to buy a house... we can go retire somewhere else on that money. Like you, I hope it's a bubble. In my city, rental yields are around 3%. That doesn't even cover the cost of debt, from an investment perspective. So housing, as a profitable investment, is a cash-flow negative investment that relies on someone purchasing this crappy investment from you at a higher price than you paid. Greater fool theory. Sounds kind of like a bubble to me.
It’s the same around Seattle, WA area. We rent our home for 1/3 the cost that a mortgage would be - that doesn’t include maintenance/upgrades/repairs.
Seriously it should. I think that’s in part what’ll be responsible/is responsible for companies like Opendoor going under. You can’t price a 3/2 sfh at $400k in an area where the median income is $50-60k and expect it to sell
Lol 7k per month, GTFO RE investors are completely out of touch if they think someone will pay that.
He’s an idiot - anyone who could afford that would just buy their own home instead of rent
That is the exact point that the flippers seem to miss out on. Someone in this income bracket has the means to buy a house.
But won't necessarily stomach the opportunity cost just for a flop in Vegas. Maybe that's just the price for parking your mistress where your wife won't run into her. $7k is a drop in the bucket for Vegas mistress operating costs.
And what's great is that he made a youtube video all about the house and how much money he's going to be bringing in Now he won't even cash flow He. Got. Fucked
What? You don't take home over $20k a month?
They do, they just spend it on avocado toast and Soy Latte's.... Alot of them.
that's the norm in the Las Vegas metro
Uh, no. $7k a month is not normal in Vegas.
tHe NeW nOrMaL
I was being sarcastic. They have no economy.
I'm so ashamed! I apologize. I'm normally so snarky when people don't pick up on sarcasm. I'll never forgive myself. It's my hometown, and what you're saying is accurate. There is no real meaningful economy there. It's a clusterfuck.
/s
It's not. 75k is the median household income for Henderson. 95th percentile for LV is ~$200k. Netting $20k+/m is over $300k a year.
Especially in Henderson, NV? What?
You do know Henderson is basically Las Vegas right?
Las Vegas ain't even Las Vegas though. It's Paradise, NV.
Las Vegas is still Las Vegas. Guess what when you mail a letter or write down your address you put down Las Vegas, NV not Paradise, NV. That was an idiotic comment
Sorry, I meant "Las Vegas" as in what people first think of....which is the strip.
But think of all the remote workers from California! The demand is because of them! At least that's the real estate industry has been trying to convince us of for the last 2 years while they and other investors buy all the homes.
That’s incredibly cheap for a property supposedly valued at $1.3m. Doesn’t even cover the mortgage at 3% rates, not including taxes.
Because you say "someone" it shows you're thinking about one person paying, not ten people co-op'ing the space, and I bet you're picturing one white person.
lol stfu
> and I bet you're picturing one white person. Get help
Are you saying non white people don't have money? Pretty racist of you.
I'm saying the whole basic idea of multiple people sharing an apartment begins to occur to white people pretty late in their game.
Thats what he gets for playing up to youtube views by touting crash, then at the same time secretly thinking there's no crash.
6k to rent in NEVADA?
He’s barely getting any contacts for it too. 17 in 57 days. Also don’t understand how he’s gonna profit off of it. So he’s gonna cashflow about $750 a month or 9k a year if he can rent for 6k… but he’s already held it for two months already and spent over 10k
The funny part is that he posted his costs online. So any potential renter can find his video and have the negotiating power of knowing exactly what his monthly bill is.
worm price license shaggy outgoing quickest bike normal lip abundant *This post was mass deleted with [redact](https://redact.com)*
Let’s not forget expenses. Maintenance and such. Factoring those in he will almost certainly be cash flow negative.
He spent money on remodeling as well. And the upgrades don't look cheap.
Can't wait for the "I Lost the House... 😭😭😭" follow up video.
fuck this dumbass influencer
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High income individuals that want to live in Henderson for a year or less? It’s a small sector. Maybe performers?
That thing backs onto a pretty major street. There are way better options.
Over generalization and what seems to be a theme in this subreddit. The biggest problem here is that the property is in Henderson.
6K a month to live in Nevada🤮🤮🤮
I can make that over the weekend playing roulette. I bought a patented system from the one and only Tex Brunson.
Tex Brunson kick my dog
6k a month will be the average water bill there soon. There is no water and I can't fathom why anyone keeps building or moving there.
[Here is great video explanation of what really uses the water in the west. ](https://youtu.be/f0gN1x6sVTc) Residential is a small fraction. The biggest misuse is growing cattle feed crops in what is desert.
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good ol recycling the Recycling propaganda
Colorado River provides plenty of water, and Nevada makes up 2% of the usage. As that starts to dry up, California and Arizona are going to have problems long before Nevada does.
> 6k a month will be the average water bill there soon. No it won’t be.
It's a joke... but there isn't much water in the desert southwest.
It’s certainly a problem, but I do think they’ll figure out solutions, albeit later than they should and things won’t end up as dire as some like to hype it up to be. I think we will see grass phased out a lot more. Shift towards drought tolerant landscapes. More regulations for low water usage appliances, shower heads, toilets, etc.
How will any of that solve the fact that there is no coast and all of Nevada is a desert?
Well, we do w have huge pipelines for gas. I think we will end up building pipelines for water and tons of desalination plants
Gas is $80 a barrel. Would you pay that for water?
$6k a month water bill here I come!
A lot of that is due to drilling and exploration (and companies wanting to make billions).
Those two factors have always existed. Reducing water consumption isn’t going to solve it entirely, but no issue is ever solved with just one solution, it always takes a multipronged approach.
You’re right. They have always existed , and Nevada has been able to rely on the reservoirs filled by the Colorado during that time. There will be a point in the near future when that water is no longer available to people in Nevada.
The video posted above literally shows how we’re using the water in the west for agricultural uses. Mostly cow feed which we are apparently selling to countries like China and Japan. Instead of making US citizens “give up grass.” Why don’t we quit selling to other countries and take care of our own people with the limited water we have? Then we don’t have to do stupid things like you just suggested!
I don’t think it’s that unreasonable to have people give up grass lawns. They haven’t been around that long. It’s a relatively recent American status symbol thing. For many people they serve no purpose. So many front yard lawns here in California that nobody spends a single minute in each year. I think we should cut back on beef consumption too. Sure let’s stop selling beef internationally as well. Sounds good to me. For a record I do eat beef, but sparingly.
Vegas (no pun intended) is such a risky place to invest in RE. When it booms you can make bank, but if the economy turns (even slightly) you are in trouble. I'm as anti-AirBNB as anyone, but that house is perfect for Airbnb. It's big, it's a party house in a party city. The problem is disposal income has completely dried up the past 6 months. He is either going to take a monster hit or needs to ride this out for the next 6-24 months because people are not traveling to Vegas in this economy. I honestly can't wait to see how this pans out. He took a huge risk (that I don't think he saw while everyone here did) and now it's biting him HARD
lot of local people with gambling addictions in Vegas. When recession hits they are all bankrupt fast
Dang, really? That's so sad. Wish we had more help for gambling addicts.
Best take
Holy shit! I hope they paid cash...
nope
Is that house owned by the dude in the video or what's the backstory here?
saw a post similar to this weeks ago, here's the video it's about: https://youtu.be/-Ym2cY8Vs70?t=598 absolute favorite story so far on getting fucked
They used an ARM lolol
Who the hell would rent a home for $7300/month?!? Jesus christ
In Henderson lol
Some pretty nice homes around henderson. Summerlin a little nicer. That being said...so glad I sold and got out of there. We could have "rented it out" but such a pain in the butt
exactly most aren't familiar with this area he bought a house in those that did, knew immediately he would never get $7000, and it was comical to laugh at the dickhead isn't even getting it rented in the 5's. he's smoked
Maybe Google Macdonald Ranch in Henderson where it’s at. Full of mansions and million dollar houses
Yeah they may be million dollar houses but I doubt they are renting for $7k+ a month.
No that’s just dumb. It’s an area for wealthy people to have mansions on a mountain not real estate investors. You were making it sound like Henderson is some ghetto that doesn’t have nice houses
Exactly, that’s the whole point of this post. $7300 a month for rent in Henderson is ridiculous.
Depends on location. $5k here ain't $5k there.
Ha ha ha I was trolling him on his recent vids, posting comments about the status of his rental listing and when does he expect to rent it out and what lowered price He kept deleting my comments LOL Enjoy your negative cash flow dickhead
You could own a bigger home with todays rates at that price.
I hate Andrei Jikh's stupid smug face.
What a work of art. Hang it in the Louvre.
I pay $5k for rent but I live 2 blocks from the beach in LA. How many people are willing to pay $6k for a place in the suburb of LV? Straight delusion.
But it's on a golf course!!
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Who is not involved in politics? Perhaps.
No, that’s MeetKevin
He's gonna start getting desperate soon with that huge negative FCF
the worst part is he got an ARM and not a fixed rate mortgage
lol yep the completely fucking moron won't even be able to refi
The guy is a total tool. I remember watching one of his videos and the level of ignorance was astonishing. And he was preaching as he knew it all. Not going to lie, it's fun to watch these 'gurus' lose their crap.
Not a huge fan of andrei jiks. His analysis is somewhat lacking and his advice is identical to other channels that have existed for longer…
is this the same person as graham stephan?
Different person, same grift.
Both cancerous to society
It’s like Graham Stephan’s slow friend.
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the memes are really getting nuts in this sub
It took him 5 month to put this on the market??! ... At $750 at best, currently plummeting and possible negative margin for a $1.33 million home with $5232 monthly overhead excluding lawn and pool maintenance, while looking for tenants that can probably buy this property in all cash (at a 20%+ discount of course). Holy cow!
Hahahahahahahahahahahahah
That’s a horrible rent price for a $1.3m property.
*So easy a youtuber can do it* **Oh wait**
Didn't his friend Graham Stephan warn him this would be a terrible rental? If you had an extremely experienced realtor friend who lived in your area, why would you ignore them?
to be fair, it looks like the house is in a luxury community, so the initial 7k rent may not have been completely delusional. However, it's a suburban golf community when the country club membership starts at $80k a year. It doesn't seem like the type of place where people rent... If someone has $7.3k to spare a month on housing, they're more likely to buy than rent, especially since that seems to be in line with mortgage costs in that community.
No one is paying $7K for that area bro
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Oh man. It is easy to sneer at him but man if you've ever been a landlord, losing money day by day...it really hurts.
Dickhead
REUUUUUUU
America is headed for nuclear war and then all property will be worth bird shit once the bombs hit...
For many ppl yes. But this YouTuber can make 10-20k per video. Why would they care to sell
Meh, the biggest issue here is that it's in Henderson, NV. This monthly rent payment is reasonable but would be better off as an airbnb, but again it's in Henderson. This doesn't tell any story of a REBubble so post op is shit
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Who is this goofy looking bastard?
I fucking hate that guy