Expected Air Date: 4/22/19
Today we are going to talk about Hempcrete. Yes friends, one day you might look back and say you heard it here first. Hempcrete may be the building material of the future.
The NAR has been sued again! What’s happening with foreclosure rates? Interest rates? Have you heard of the peer-to-peer lending company Prosper? Well, they are in a bit of trouble. I’ll fill you in today. Also today we will learn the areas with the least affordable homes in America, the highest and lowest taxes. I have an important an AirBnB update including the most profitable areas to own AirBnB properties, and where two major metro areas where short-term rentals have been banned. All that and much more coming to you today as we bring you the information you need to stay informed, stay ahead, and make money in Real Estate.
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Motivational Thoughts for the day
- “Do not wait; the time will never be ‘just right.’Start where you stand, and work with whatever tools you may have at your command, and better tools will be found as you go along.” —George Herbert
[0:17] Teaches you how to make money in real estate wherever you are whatever your situation there is an opportunity for you flipping America is sponsored in part by American IRA
founded by investors for investors on the web at American Ira. Com,
and by Braswell Capital Solutions commercial lending made easy on the web at Braswell Capital Solutions. Calm and now here’s that flipping America guy Rodger Blankenship,
thank you Kathy good morning everyone how’s it going out there.
[0:52] This is flipping America I am your host Roger Blankenship and I teach people how to make money in real estate coming up today the National Association of Realtors has been sued again.
We’re going to talk about that also
what’s happening was foreclosure rates and what’s going on with interest rates I have updates for you have you heard of the peer-to-peer lending company Prosper well
they’re in a bit of trouble
I’ll fill you in today on the show also today we’re going to learn the areas with the least affordable homes in America and we’re going to talk a little bit about the highest and lowest taxes,
real estate taxes being paid by homeowners across the country I have an important Airbnb up.
Including the most profitable areas to own Airbnb properties and two
major metropolitan areas in the United States that have banned short-term rentals
this is important for you to know you need to plan ahead you need to be thinking and you probably need to have a backup strategy because the legal battles for short-term rentals is really just beginning
and I’ve got an idea about a strategy for that I’m going to share with you a little bit later on and today we’re going to talk about.
[2:08] Hempcrete is Friends one day you might look back and say you heard about if your first hempcrete can,
it wait to eat if you build your house made out of hempcrete will it get you high right now it’s him cretus
yeah well it’s made from him but it’s a different product and it may be the building material of the future now I say maybe because I have seen a lot of products like
just come and go but I’m going to talk to you about him create and give you the pros and cons of it coming up a little bit later on and.
I’m going to give you the information you need to stay informed stay ahead and make money in real estate,
let’s dive into the news the National Association of Realtors was slapped with a second class action lawsuit just this past week
I filed in the northern district of Illinois
and the interesting thing to me is it is almost identical to the first lawsuit filed last month by a Minnesota home seller.
So it’s obvious that I’m not a lawyer I just wonder how many times can people be sued for the same things.
[3:18] Can we just form of a waiting list here I think that’s the purpose of class action lawsuits so everybody that has the same complaint can get into one
I just don’t know where this is going to go folks and I would like to think that is just a ridiculous you know MoneyGram
and I still think it is but I don’t know that they’re not going to be taking taken seriously and I believe this is going to be taken seriously and
in spite of the National Association of Realtors claims to the contrary.
[3:51] There may be some basis for this because of its interesting because.
What they’re doing is appealing to what’s going on with real estate in other countries and how real estate transactions are done I don’t think
that logically that proves their point the things that they are claiming are things that are clearly.
Closed in the documents that the National Association Realtors has provided for the Realtors and ultimately to Consumers for years so there’s no secret here I don’t know that they’re going to be able to reveal any kind of hidden conspiracy and I don’t think it’s
I don’t think they will prevail but I have been wrong before for example in the wake of the terrible or riffic shooting
the school shooting at Sandy Hook Elementary School a judge has ruled that the parents can sue
the gun manufacturer because they made the gun that was used and as I puzzle over this I think oil why don’t they sue the boys parents.
Because they made him you know what how does this logic actually work out I know that people are grieving and it’s a terrible tragedy.
[5:05] But at the shoot the gun manufacturer just has a disconnect to me but it’s being allowed to go forward and so.
What seems like a logical disconnect in the case of Housing and real estate you know I I just can’t really predict where.
Things are going to go forward because things don’t always follow my understanding your thoughts about what is logical.
[5:33] We’re going to stay on top of it and will keep you up-to-date as things develop in this case I think it’s probably going to go on for a couple of years but,
you know we’ll check in on it from time to time let’s turn our attention to interest rates in foreclosures because and the reason we stay on top of this here at the flipping America show is to keep you informed because Everywhere I Go.
In almost every meeting I attend or even meetings where I’m speaking somebody raises their hand and says we are due for another real estate disaster and noi
I’m not particularly confrontational if you listen to me for a while you know that and I am definitely not going to be that in a situation where I’m the invited guest speaker but.
[6:17] What I really want to ask is why do we have to assume that another disaster is going to happen there has been one true real estate disaster in my lifetime and,
I’m kind of old now there have been a lot of Corrections and there have been some pretty significant downturns,
the disaster of 2008 is unprecedented why do we assume that is going to happen again well.
[6:44] I don’t want to just assume that it isn’t going to have.
So we’ve devised some measures that we keep track of here at flipping America I revealed the metrics that we look at from time to time or kind of stay on top,
just to make sure we have an idea where the market is going into the key indicators that we look at our foreclosure rates and.
Interest rates so let’s see what’s happening.
One of my go-to sources for data like this is Adam data I don’t mind telling you a t t o m data.com it’s a great source you should probably be looking at it yourself but I look at it so you don’t have to.
So when we look over it Adam data we see that you as foreclosure activity decreased 15% in quarter run 2019 to the lowest levels since quarter 1 of 2008.
[7:36] Know if we are heading into a housing crisis one of the things that we would expect to see is rising foreclosure rates but.
We see decreasing foreclosure rates
which tells me yep the correction is out there the market is softening anyone that’s in the market can see that it’s taking a little bit longer to sell homes and you don’t automatically get five offers the day you list your house like you did just a couple of years ago,
anyone can see that however.
[8:06] It does not mean that we are heading into a crash now if I looked at these reports and saw that.
Foreclosure rates were spiking and that they were increasing in and then I would share my concern with you all right but for now I think we’re okay.
Not having said that I’m going to give you the counties across the country with the most foreclosure starts in March of 2019 and here they are from 10 to 1 coming in 10th Place Palm Beach County Florida
number nine is Riverside County California number 8 is Clark County Nevada.
Number seven is Philadelphia County Pennsylvania number 6 is Miami Dade County Florida number 5 is Maricopa County Arizona number.
Broward County Florida number three is Harris County Texas number to Cook County Illinois number 1 Los Angeles County California and Cook County and Los Angeles County are significantly higher than all of the other.
Counties I mentioned but notice there in Florida mostly Florida California a little bit in Arizona Pennsylvanian Texas at 1 in Nevada.
[9:21] The atom datasite I picked up another article these are they call it the,
top 10 counties where the greatest percentage of annualized wages was needed to buy a home I call it the least affordable cities for home buying this is where they would compare the median income with the median home price all right and.
What what we see here is for example in Kings County New York.
It requires 116% of your annual income to buy a home.
[9:56] That’s right a hundred and 16% if you’re the if you’re the average wage earner buying the average price house.
You are just out of luck in Kings County New York and so let’s identify.
In fact let’s have a little fun here I’m going to give you five seconds to name the states you think we’re most of these non affordable houses occur.
[10:20] 5 4 3 2 1 okay that wouldn’t really 5 Seconds cuz you don’t need it do you if you said New York and California you’re exactly right we got Kings County New York New York County New York Santa Cruz County California,
Marin County California Maui County Hawaii that’s one exception.
San Luis Obispo County California Queens County New York Monterey California Orange County California and Sonoma County California California and New York was one little outlier in Hawaii contain.
The top 10 least affordable home buying areas in the United States surprised no I know you’re not.
It’s not really a criticism it’s just the way things are,
it has things to do with the taxes and demand than coastal areas and the geography and you know this is nothing really new it’s it’s not a surprise so if you’re going to live in those areas.
You better hope that you make a little bit above the median income so you can afford the median price house.
We got to take a little break but when we get back I’m going to talk to you about so much more with the Airbnb update and also.
Charlie Munger the CEO of Berkshire Hathaway Praises this one trait of Warren Buffett’s without it you just don’t get very far in life all that and much more coming up in just a moment.
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[12:49] Fintech lender prosperous been ordered to pay $3000000 fine for misleading investors can you believe it.
[12:57] One of these companies would mislead investors how are they misleading investors well they just kind of didn’t report a number of non-performing loans on their platform Prosper is a peer-to-peer lending platform in they are
have announced that they want to get into doing home equity line of credit loans and but right before they got ready to unleash that.
They got slapped for this 3 million dollar fine.
We got to go all the way back to 2017 where they lost a hundred and fifteen million dollars and suffered a 70% Plunge in the company’s value
and you know they made a big rebound after that and things were looking good but it turns out that things weren’t really as good as they made them look because they just conveniently forgot to report some of these
non-performing or underperforming loans and they got caught,
so there’s the three million dollar fine and things are on hold and this does this really affect you probably not but just kind of word of,
of caution I suppose you can’t believe everything that you hear you can’t believe everything that you read and sometimes you can’t even believe it when it’s coming from the source.
[14:06] So healthy skepticism is always good and keep your eyes open out there I picked up another headline that I thought was going to be important,
the headline is HUD announces new rules for down payment assistance on FHA mortgages and then I went to read into the article actually they didn’t announce anything new they just clarify the existing rules because they found that
some of these agencies that are doing down payment assistance you know what that is right now if you get a conforming loan
you have to have three and a half percent down payment which to me is on the low side but you are also able legally.
[14:48] If disclosed to use down payment assistance and that money can come from a private Enterprise it can come from Community organizations that can come from government.
Agencies that’s right you can get the government to give you a down payment for your house I don’t know
how people play the system like that but some people do and one of the worst offenders violating the HUD rules where the government agencies oh dear
not only private Enterprises but also the government might be a little misleading might be fudging might be cheating a little bit yeah that’s true so let’s put them in charge of our health fair Health Care exactly what’s the temperature
kind of dictate what we do with our lives and we will be so much better right.
[15:36] All right that’s about as political as we get on this show but I just want to say this about the down payment assistance first of all.
[15:46] Why are we doing this.
[15:49] We’re doing this out of compassionate desire to help people achieve the so-called American dream of homeownership.
[15:59] But we’re actually doing is we’re putting people into homes with the responsibilities of homeownership that probably are not prepared in life to own a home.
Now I’ll Rodger that sounds so judgemental why would you say that look if you can’t come up with a three and a half percent down payment for your home what.
About your life is communicating that you have the capability to afford the other things that homeownership requires it’s not just making the payment when you own the home.
And things break you have to fix them.
[16:35] Most likely you have to hire someone to fix them things in a home wear out over time.
Water heaters HVAC and roofs they do not last forever.
They wear out over time and must be replaced if you can’t,
come up with a three and a half percent down payment then either you don’t make enough money to truly afford the place or you don’t have enough financial discipline.
Put money away and I know this sounds a little harsh and I’m not trying to be harsh I’m just trying to be realistic I’m trying to save you from the heartache,
I’m having a home that you can no longer afford to maintain and get into a situation where you become one of the distress to buyers that we deal with almost every day that people calling us and say please I’m
I’m over my head I’m I’m
in trouble here and we go to their house and they’re behind on their payments and because they have arranged their life assuming that Perfection will happen and then sometimes all it takes is one blow out in a tire.
[17:43] And they can’t afford that.
Tired they have to replace until they put it on a card and that begins a snowball of debt and getting behind and the next thing you know.
[17:55] Everything is in a mess in their lives when we go into these homes nothing has been repaired for years
there are problems everywhere they’ve become blind to it because it’s like the noseblind commercials when you live in the situation you may not realize what it truly looks like to someone coming in.
And seeing it for the first time and so I think that.
Right now this is my opinion folks and you didn’t pay anything to to download this app or listen to the show Hunter radius exactly what you paid for him.
My my opinion is three and a half percent is too low when I bought my first house the required down payment was 20%
that seems Ridiculous by today’s standards but you know what the Foreclosure rates were a lot lower because people who could come up with 20% down payment had something going on with their financial life maybe not wealthy,
but just enough discipline to put money away to save some money for a rainy day because rainy days happen.
100% of the time and with the three and a half percent down payments.
We’re assuming that rainy days are really not going to happen we’re assuming that wants people become homeowners they will be better money managers we’re making a lot of assumptions that just don’t get born out with experience.
[19:18] And we can pound this problem by giving people the three and a half percent so.
I I don’t know I thought when I saw the headline that maybe we were going to have some sort of it a change in the way may be eliminating down payment assistance and you know.
I understand that it sounds a little cruel but I’m not trying to be cruel some people just are better off renting and sometimes we’re better off going through the pain of learning.
A new skill such as don’t spend all of your paycheck to get to the point where we can be better at life a little later on.
[20:00] That’s a little tough love from your flipping America guy and you know I love you you know I love everyone and I want the best for everyone that includes the people who can’t afford a home right now.
I really do.
[20:13] I didn’t mention this story earlier I just want to throw this in there it’s almost a no by the way in but you know interest rates have been coming down and interest rates are still pretty low they took us light up.
In the last week or so but also weekly mortgage applications for home buyers hit the highest level in nine years that’s interesting to me because.
I’m seeing other reports that are saying that housing sales are going to be stagnant this year.
Particularly due to under building and I see this and I understand that but.
At the same time mortgage applications hit the highest level in nine years I don’t think that’s sustainable I think you know you can’t really base a.
Any kind of predictions on what happened over one week but it is good to know that they’re they are the market is not crashing people are still buying and.
Applications for loans are up hey you want to know where the lowest property taxes in America are.
Here comes the top 10 list or maybe it’s the bottom tier list I don’t know it’s the 10 lowest property tax metropolitan areas in the United States this thanks to our friends at
attom data and the here they are with no further adieu Laredo Texas.
[21:30] Urban Honolulu Hawaii Montgomery Alabama Tuscaloosa Alabama Colorado Springs Colorado Huntsville Alabama.
Provo Orem Utah Salisbury Maryland Greeley Colorado,
and Fort Collins Colorado interesting to me that out in Colorado places that you know where the real estate is just booming you’ve got a low property taxes and the low property taxes in Alabama.
Get to something else I’m going to share with you in just a few minutes about hot real estate Aries but while we’re still on the subject of property taxes let’s talk about,
the high property taxes What markets have the highest property taxes well here’s the top 5 tax rate.
Binghamton New York Syracuse New York Rochester New York Rockford Illinois and Atlantic City New Jersey notice a theme,
all of them are located in the Rust Belt
Northeast whatever you refer to it as but as we see consistently we see population leaving those areas and moving to other areas where there is low taxation.
[22:40] The low taxation usually means a lower cost of living and particularly in retirement.
Aside from the high-tech straight where are the highest taxes paid and here we go with that the top 5 anyway.
Bridgeport New York was number one Then followed by New York New York.
San Jose California Trenton New Jersey and San Francisco California.
[23:07] So you see the contrast between high taxes and low taxes and it typically it’s a north-south or a coastal Inland kind of thing.
I want to take that bit of news and put it with this story from CNBC retirees are flocking to these three states and fleeing these three states in droves the three states were people are leaving.
Are New Jersey Main and Connecticut the three states that they’re heading to.
[23:38] New Mexico New Mexico is now the leader Stepside Florida but New Mexico Florida and Arizona.
So they’re leaving the high tax expensive states and their moving to lower tax less expensive States.
And this is especially true as among retirees and as the.
Is the country grows older with the Baby Boomers now heading into retirement The Savvy real estate investor is paying attention to this and is looking to properties in the warm and less expensive Southern
climbs of the United States where do the wise that is your word to the wise.
[24:24] I want to wrap up this segment with the little bit of international real estate news Yep this is a game changer in
Abu Dhabi and I’ve been told that I need to go there people say this all the time because it’s a great tourist destination and so forth and so on and it is a an economic Center in the Middle East
I honestly don’t know whether I’m interested in going or not. I’ll give some thought to that later on but this is a little bit of ground breaking news you see in Abu Dhabi the only people that have been allowed to own property there are,
people who were United Arab Emirates or Gulf cooperation Council Nationals.
[25:07] Foreign investors were limited only to 99-year leases Abu Dhabi just change that law they will allow foreign investors.
To own property there for the first time and it is commonly believed and I I tend to agree with this
a flood of foreign investment money is going to come to Abu Dhabi now the thing that concerns me is you know it seems like
this little toe hold of freedom in in the little bit more liberal lifestyle in the Middle East but.
It seems that that could change at any time and if it did and.
There was a kind of a religious takeover they could throw all the westerners out and maybe you would lose your investment who knows it’s a little too risky for me.
A lot of people are going to take that risk we’ll be right back.
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[27:00] And we’re back I’m Rodger Blankenship your host I teach people how to make money in real estate on this show we don’t encourage you to just drop what you’re doing and go out and start flipping houses like you see on TV that’s really not for everyone and,
most people would find a different way to invest in real estate we do encourage you however everyone listening to consider real estate as a part of a balanced Investment Portfolio into that end we intend to bring you the
best in news information methods Trends Styles approaches and things to do.
How to make money in real estate what we’re doing today is we’re giving you information information that you can use to kind of guide your activity now one of the greatest investors in the history of Earth.
Is a gentleman by the name of Warren Buffett.
[27:51] You’ve heard of him I’m sure if you haven’t look him up now his CEO is a gentleman named Charlie Munger and Charlie Munger has just come out and said that,
the number one quality of Warren Buffett that has made him an effective investor for decades and his company Berkshire Hathaway one of the most successful investment firms in the history of
curse his number one number one,
quality are you listening the number one quality folks you may not become a multi-billionaire like Warren Buffett but your life is certainly going to be better if you’ll do some of the things that he does and his number one thing according to Charlie Munger is.
[28:38] Mr. Munger says without lifelong learning you’re not going to do very well you’re not going to get very far in life based on what you already know.
[28:47] He also said if you take Warren Buffett and watched him with the time clock I would say half of all the time he spends is sitting on his butt and reading.
[28:59] Yes you going to have to read you’re going to have to learn and it’s a lifelong process.
It was so gratifying to hear this because you know.
I’m no Warren Buffett I’m no fraction Warren Buffett but I am committed to lifelong learning and also just keep your brain mentally stimulated Buffett.
Reads about 500 pages a day.
He also keeps his brain active by doing things that stimulate the brain his thing is to play bridge she plays Bridge SC,
four sessions a week 2 hours of session you know I know a little bit about playing bridge that’s not what I do I like crossword puzzles myself but anything that you can do to keep
your brain sharp and just make sure that you keep on challenging yourself to think.
Warren Buffett is 88 years old there’s no stopping in him and you know who knows how long this run with Berkshire Hathaway is going to go but it’s been great for him for the last 40 or 50 years because.
Of his commitment to learn the things that he knew in one decade were not the things that would get him through the next decade and this these are wise words for you to keep in mind now.
Back to the real estate news.
[30:21] For more than a decade short-term home rental websites such as Airbnb HomeAway and VRBO
I’ve helped everyday Americans squeeze some serious cash out of their homes were their families running on empty bedrooms or investors offering up multiple properties and Prime tourist neighborhoods leasable by the night.
Easy peasy but those Carefree Good Times may be coming to an end the motto of Silicon Valley has been,
move fast and break things but sooner or later the bureaucrats ketchup that’s the current reality for the short term rental industry now weathering and unprecedented storm of restrictive new regulations from city councils across the country
tensions between unregulated rentals and cities have been simmering for years spurred by Angry neighbors and pushed back from landlords and hotel operators
now they are boiling over this year.
[31:16] Las Vegas and Washington DC will phase out full home rentals on sites like Airbnb with no owner present which make up more than 70% of their current markets.
New Orleans enacted legislation in January that will push these units out of historic residential neighborhoods and a number of smaller cities are anticipated to follow their lead in multiple cities across the country
and in individual condo buildings in most major cities Airbnb.
And other short-term rentals are being regulated out why well usually just takes one or two people to complain.
[31:57] And the party’s over so does this mean the days of big profits from Airbnb are over nope but.
[32:04] You need to be prepared to change folks during this time of change you need to do your homework.
[32:12] You need to know local laws including what’s coming down the pike and need to ensure.
[32:19] You’re investing nest eggs are in markets where demand and appreciation are likely to to remain strong and so I am going to suggest one strategy for you that could make all of the difference and then I’m going to share with you
the top 10 most profitable places to own an Airbnb rental,
okay here’s the strategy I suggest rather than buying a property why not consider leasing a property this is a cash flow game.
[32:52] Okay and can change,
what if you buy a property in a particular area and then that City decides to ban airbnb’s what are you going to do you may it may work really well as an air B&B,
but it may not work well the numbers may not work as an ordinary rental and you paid too much for it to flip.
This one of the strengths of the Airbnb model you can pay a little bit more for a house because of the income so I suggest that you,
just go out and start renting these houses and then you need to disclose to the landlord that you are going to be using it for Airbnb and.
You going to have to
get rejected some because some just won’t like the idea of it but on the other hand that you can point out that there at the house is going to be professionally cleaned once or twice a week and no one’s going to be bringing any long-term problems,
I know I have somebody in there looking at the property at least once every week.
I think the other thing that you do is you tell the landlord that you’ll be responsible for any repairs if anything gets broken.
[33:59] As we consider the most profitable places let’s consider what the criteria are.
This is a study done by realtor.com by the way and so here are the criteria average short-term rental daily rate monthly revenue and occupancy rate the rental demand score for each market.
The average Airbnb host rating streer increase in short-term rentals the per capita number of short-term rentals.
The monthly average short-term rental income as a ratio of a monthly mortgage payment the median list price the lower the better and the one-year home appreciation.
So with those.
[34:41] Factors in mind let’s consider the 10 most profitable markets for Airbnb number one is Scottsdale Arizona,
the median list price of a home there is 685000 the average daily rate is $301 the average occupancy rate is 81%,
and they’re 50 178 active rentals why are they so popular they’re just outside of Phoenix Scottsdale is a hotbed for American corporate Elites looking for a weekend getaway full of mountain biking Golf and hiking
all cities cross-country are creating tighter rules and outlawing Airbnb rentals altogether Arizona has gone the other direction it’s signed a law in 2016.
It prevents cities in the state from Banning short-term rentals that legal protection combined with vacation rental demand makes Scottsdale the perfect place for investors Scottsdale does limit short-term rentals to no more than six adult guess.
[35:36] Another reason for the Scottsdale Airbnb Boomin 15 major league baseball teams including the Chicago Cubs and the LA Dodgers come to town for spring training every year
the coaches players and their families often prefer renting an entire Scottsdale home on Airbnb versus being holed up in a hotel room for 2 months,
Scottsdale even the even though you had met Faith close to seven hundred thousand for the house that could be a winner Orlando Florida,
and I think the reasons here might be obvious the median list price 300,000 the average daily rates 193 occupancy rate is 86% and there is 6900 active rentals in Orlando Florida
you already know about Orlando’s main appeal for vacationers theme parks baby.
[36:21] The wild west era of short-term rentals has come to an end new city ordinances went into effect last July requiring host to get license,
pay a fee and only rent out bedrooms and homes they live in.
This means no out-of-state investors and that is a sea change for this tourist Mecca but it’s helping locals who just want to rent out a room or two
despite the regulations folks can still make good money listing their extra bedroom so and they don’t have to live in a fancy home to do so a private room with a queen bed can go for 30 to $100 a night
all right now we’ve look.
As we drive around a little bit we’ve looked at this and we don’t really want to take a room in somebody’s house part of it is
we’re out there and I’m fully engaged with whatever speaking engagement it is and after engaging with all of you lovely people for a little while I don’t want to go home and have to make conversation with the hosts
and maybe you don’t have to I don’t know never tried it.
[37:21] Anyway this is working for a lot of other people and here’s the thing folks if you owned a house and I stayed at a house in Orlando that was owned by somebody who lived in England so what are they going to do
they probably had to unload the house when this rule was passed that’s why I suggest maybe you just rent.
[37:39] All right number 3 New Orleans Louisiana.
The median list price is 350100 average daily rate $230 occupancy rate 78%.
And active rentals 8900 vacationers looking for authentic Nola experience have traditional traditionally stayed in Airbnb rentals in Prime historic neighborhoods.
Over that time.
It’s caused home by used to soar as investors bought up available properties and priced out many residents after a lot of hand-wringing.
A full ban on Airbnb rentals in the truest heavy Garden District in French Quarter went into effect in January same thing.
But we’ll continue the story in just a couple minutes we got to go pay some bills.
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[39:47] We’re back we’re going to the top 10 most profitable Airbnb
cities across the country number one was Scottsdale Arizona number to Orlando Florida and number 3 New Orleans Louisiana but note Orlando and New Orleans have come with some new rules in fact I think Orlando is basically out,
unless you want to move to Orlando and rent out a room in your house you can forget it.
[40:09] New Orleans you can’t do it in historic district anymore you can be there by but you can’t be in it number.
For Miami Florida list price $440,000 average daily rate,
$204 occupancy rate 82% active rentals
10000 the luxury high-rise oceanfront condos in Miami Beach or prime short-term rentals but before becoming a host here you’ll need to make sure that you’re following the new rules very carefully,
last fall the city band vacation rentals in residential neighborhoods outside the core
Miami Beach Downtown communities fines for breaking these rules can top $20,000,
it’s gotten so serious that City officials are kicking guests out of rentals they’ve already checked into Airbnb has filed a lawsuit against the city for the changes,
but those you follow the letter of the law can make some real money renting out their rooms and homes condo rentals can easily top $200 a night number 5.
Honolulu Hawaii right the median list price is 720000 the average daily rate is $178,
occupancy rate 80% active rentals 7216 it’s perfectly legal to provide vacationers with a place to stay in Polynesian Paradise.
[41:27] For now but the Holland Honolulu city council moved forward a bill that would dramatically tighten the reins on vacation rentals.
[41:37] These rule changes would lock out big investors and create a steep
fine of more than $10,000 for non-licensed units so it might be best to wait out the legislation before making the plunge here unless folks are renting out spare rooms in their primary residences.
Number 6 Nashville Tennessee.
[41:57] Median house price 385,000 average daily rate $247 occupancy rate 74 active rentals
6965 as Music City has become
two bachelorette parties what Las Vegas has two Bachelor parties Nashville short term rental market has taken off but the free-for-all days are over.
Last year the city being began requiring mandatory permits for host
collecting Hotel taxes and cracking down on entire homes without the owner on site being rented in residential areas but it hasn’t dampened demands we get calls daily from people interested in buying a property to rent on Airbnb.
[42:38] Has Brian Copeland the real estate broker with doorbell real estate he owns the property he regularly list on Airbnb that was grandfathered in under the previous rules pricey Nashville hotels charge $1,000 a night during the NFL draft later this month.
They’re creating an opportunity for lower-priced rentals number 7 Santa Ana California.
The median list price of $650,000 average daily rate $181 occupancy rate 83% active rentals 305,
Santa Ana short term rental market has gotten a boost from the nearby city of Anaheim home to Disneyland which recently passed highly restrictive rules on rentals,
so Santa and up which doesn’t even require permits for homes listed on sites like Airbnb got the guest score
we’re 10 minutes to the beach in 10 minutes to Disneyland so we get a lot of tourists says local real estate agent Yara Guzman of L & B Enterprises from a family perspective airbnb’s are smarter than hotels,
if you’re traveling with children it makes sense to have kids in their own separate rooms and yes indeed.
[43:46] Santa Anna had an Airbnb ban earlier in the decade but lifted it in 2015 since then.
Investors and everyday homeowners have flooded the market many are renting out rooms in private homes for about $50 a night entire homes can top 400 a night if they’re willing to accommodate large groups or families.
Okay so a little bit of encouraging here because Santa Anta and a band and then they lifted it,
I’d like to know more about why they lifted it but maybe some of these places that are putting bands out there now.
Will come to their senses later on and realize they’re missing an opportunity for some Revenue here alright number 8 Tulsa Oklahoma,
median list price 220,000 everidge daily rate 97 occupancy rate 75% active rentals 451 when folks dream of their ideal vacation destinations Tulsa doesn’t usually spring to mind
no kidding. But the number of North short-term rentals here is exploding.
Up almost 300% over the past three years and demand is so high that the market might need even more rentals to meet it.
[44:51] Yes the city has 140 parks and is home to the Philbrook Museum of Art but its biggest draw maybe affordable home prices and it’s the cheapest parking on the list so investors are swooping in and helping push up prices which are up 21% over the past 3 years.
This hasn’t gone unnoticed the Tulsa metropolitan area Planning Commission recommended earlier this month that the city require licenses for property is rented out for less than 30 days.
But the city is still a good deal for travelers and Tower one bedroom apartments downtown can be found for $50 a night while there are plenty of houses going for under a hundred Knight
number nine Austin Texas the median list price is 545000,
average daily rate $245 occupancy rate 71% active Reynolds 10825 there are about a zillion reasons to visit Austin
visitors come from music media the festival South by Southwest Texas Longhorn football game paddle boarding down the Colorado Colorado River and they’re all looking for places to crash.
[45:53] Number 10.
Tucson Arizona the median list price is 392100 with an average daily rate of $133 occupancy rate 90% active rentals 3124.
The cherry on top to owning a home listed on a site like Airbnb or HomeAway is when your property shoots up for Value among the places we rank Tucson had the highest price appreciation up 9% year-over-year this according to realtor.com,
visitors come to Tucson for the hiking mountain biking or the perfect Instagram shot in Saguaro National Park.
Named after the iconic Cactus these visitors are usually snagging up entire homes which make up more than 80% of the vacation rental market here.
So there you have it folks pretty exhausted list the top 10 Place profitable places to own an Airbnb and why those places are profitable.
What kind of underwear Atlanta stands on this list because Airbnb is a big and growing thing here in the city of Atlanta where the show originates and I have several friends or into it and neck we’ve considered getting into it this year
ourselves we don’t want to miss the trend but we also don’t want to get ahead of ourselves we want to pay attention to what’s happening with legislation and
personally I don’t want to end up with the house at.
[47:11] I don’t know what to do with it because I can’t cash flow it as a rental and I can’t flip it for a profit back. I can’t even break even on the flip so
I think a little Caution is out there folks and you need to pay attention to the laws and the rules in the communities where you are interested but there is nothing wrong with you.
I’m going to one of these other profitable areas that don’t have the restrictions and buying property there
and you know you have to remember if you’re going to be in the air B&B or the short term rental business year
basically entering the hospitality industry and there are a lot of management details that go along with that and some places licensing requirements and you need to make sure you’re fully prepared to do all of those things before you dive in.
[47:57] That we just talked about the most profitable areas for Airbnb.
What about Aries that are just hot in the markets are hot are the markets hot anywhere yes they are and I’m a little surprised because one of the hottest markets in America right now has been over the past two to three years
not keeping up,
but now they’re keeping up in the number one hottest Market in the in real estate in America right now is Columbia South Carolina congratulations Columbia you made it to the top of the list and it’s been awhile since you’ve been there but we’re happy for you
also Greensboro North Carolina Spokane Washington,
Birmingham Alabama and number one is Chico California no Chico I think is an aberration I’ve been to Chico it’s a lovely town but I don’t believe that there
real estate boom right now is sustainable because what they have is hundreds if not thousands of people have flocked there.
[48:54] Because of the.
Wildfires in California over the past year and they have to have a place to live and Chico is nearby but I believe once they rebuild they will go back and Chico will be where it was there other factors that are leading
to the other cities that are on the list Spokane Washington is getting the spillover from
Seattle in in coast of Washington and Ben people want to live in the state but
I can’t afford Seattle so they’re out there making Spokane
a hot market and pretty soon people will be able to afford to live there either now Greensboro North Carolina is in the heart of the Research Triangle in Raleigh-Durham and that area and it’s been hot for,
well years and it continues to flourish.
Birmingham Alabama is interesting remember when we were doing the lowest taxes lowest property taxes Birmingham wasn’t named on the list but.
You had two other cities in Alabama with very low property taxes Montgomery and Huntsville so I believe that Birmingham probably
also has low property taxes and we’ve had our eye on you Birmingham for a little while now here it flipping America as we think about our next foray into a city with fixing and flipping.
[50:11] Here’s an interesting little bit from South Florida I’m just going to throw it out there not going to spend a whole lot of time on it but something to pay attention to Florida and you know we have a lot of listeners in Florida so one of the things in Florida is the park model.
[50:26] Kind of I don’t know if it’s a sad it’s been around for a long time this is where you get something that looks like an RV or a trailer and you and you,
drive it in there and you said it down and then people build a room onto this thing and it called a Florida room,
and so you have some nice living space then you go into essentially what is a a towable RV
to sleep at night and people are retiring to Florida and living these things people are also retiring to Florida and living in mobile homes and mobile home parks and the park.
The RV parks that have these you know they’re not permanent they still have the rubber tires on them but they may have sat there so long you would have a hard time moving them whether it’s the park models or the mobile homes.
But what’s happening is developers are pushing out from the cities and they’re looking at these areas and buying them up and as they buy then they raise the rates and kind of just encourage in a way the,
the residents delete UC they own their unit.
Which is more of a it’s more of a vehicle than real estate is not real estate because it’s so has tires is not attached to the ground the real estate the ground underneath it is owned by someone else who can sell it.
[51:46] What’s happening is.
Affordable housing is kind of going away as he’s developers by up these mobile home parks and she’s something to watch.
I’m not sounding the alarm Bells now but we are keeping our eye out for developing stories on this now lastly today I want to talk to you about hempcrete.
What is hempcrete first question people ask is will it get you high know it won’t,
is in the same family as marijuana but.
It has such a small amount of THC that it’s negligible and in fact the president just signed an order of removing him from the.
A list of Controlled Substances hemp rope has been used for hundreds of years and the hemp fibers are very tough and have been used to build to create housing material going back.
Maybe a thousand years they’re finding structures that are five or six hundred years old that are made with,
a hemp type of product of hemp type of brick now a new product has been developed called hempcrete.
[53:03] Hempcrete is a biocomposite made of the inner Woody core of the hemp plant mixed with a lime-based binder the hip core or.
Shiv has a high silica content which allows it to bind well with lime.
This property is unique to Hamp among all natural fibers the result is a lightweight 7 tisha’s insulating material weighing about 1/7 or 1/8 of the weight of concrete fully cured him Creek blocks float in a bucket of water.
It is not used as a structural element only as insulating infill between the frame members though it does tend to reduce racking all loads are carried by internal framing,
which that dreaming is most common making suitable for low rise construction hempcrete buildings 10 stories high have been built in Europe.
[53:53] The implant itself is huge it can grow over 12 ft tall and it contains very little THC.
Which is the psychoactive compound in marijuana that makes you high so if you get a house built out of him Creek event that it’s not going to make you high
this building train is just getting off the ground with the few homes in the United States North Carolina and Florida namely.
And it’s too soon to tell whether it’s really going to take off I’m for it because it’s renewable it’s lightweight.
And it’s durable I don’t really see any downside the only downside right now is it’s very expensive it’s very expensive because,
we just haven’t done enough of it to create the demand for it to create crops of hemp to build houses in the future but.
Hemp itself has several advantages it can be finished like any house that’s out there you know painted and all that.
Homes made out of hempcrete are pest resistant and fire-resistant even a blowtorch shooting a flame directly onto a hempcrete wall from a few inches away will just Char the surface not.
Actually allowing for combustion like wood.
[55:12] The natural enhance flexibility of him Creek resist cracking and crumbling from temperature changes and even earthquakes.
[55:20] The biggest drawbacks right now are the cost and public perception.
Feet when you say the word hemp people think oh my goodness we’re making houses out of marijuana no it’s not.
We’re making houses out of that same stuff that they have made ropes out of for hundreds of years okay that’s it let me tell you a little bit more about him.
[55:41] Hemp itself is a beneficial crop requiring no fertilizer weed killer pesticide or fungicide it grows so thickly that weeds cannot grow,
Farmers grow it in rotation with other crops such as barley or rye,
the crop following the hemp requires no weed killer because temp has driven the weeds out the hemp seed is harvested as a nutritious food supplement rich in omega-3 oil amino acids protein and fiber it’s considered a superfood
the outer fibers are used for cloth usually as a blend with 45% cotton,
the Woody inner core is chopped to uniform size for the use in making hempcrete it has been traditionally used as animal bedding.
Thoroughbred horse owners demanded.
[56:23] 4/60 years growing hemp in America has been illegal because it resembles its psychoactive cousin marijuana it is grown legally in Europe the UK and Canada through a system of license Growers,
producing seeds certified low in THC Farmers must buy their seed from the seed growers in their fields are inspected periodically are hemp here in the United States.
Up until recently has to be imported from the United Kingdom a new plant to process the hemp core is being built in Canada so that should be a North American supplier for him Creed,
pretty soon and with the the president signing the recent Farm Bill.
In late December specifically removing him from the Controlled Substances Act and out of the jurisdiction of The Drug Enforcement Administration it is now clearly.
[57:12] Illegal agricultural commodity in the United States this could pave the way for.
The planting of hemp plants across the country and hempcrete houses.
What is the implication of this well certainly something to be paying attention to this is a much more viable alternative than 3D printed houses which you know it was all the rage for about 1 minute a couple of years ago,
because this is a naturally produced product you know.
I know that the Earth is a rock and we’re probably not going to run out of rock and if we mined The Rock to turned into country we’re not really changing that much about it do you know we still got rock and so it’s not going anywhere but.
Concrete is being driven up in price by demand around the world and hemp is something that we can grow
and grow and grow it will benefit the farmers I didn’t even mention that him is great at absorbing carbon dioxide,
you can suss out the implications of that for yourself but I think as a chance.
[58:22] That music means we are out of time for today my friends thank you for tuning in I hope the news has been helpful to you get out there keep your eyes open because there’s an opportunity somewhere.
And it’s probably not going to smack you in the face you got to be looking for.
[58:54] Do not wait the time will never be just right.
[58:59] Start where you stand and work with whatever tools you may have at your command and better tools will be found as you go along.
[59:07] This quote by George Herbert is brought to you today by the foundation for Renewal working together with communities across the country to bring lasting life change find them on the web at renewal.
[59:31] You’ve been listening to flipping America real estate investing for everyone if you have any questions about real estate send them two questions at flipping America network.com,
listen three times a week on stations across the country or on the flipping America app free in the App Store,
make sure to like us on Facebook find and follow us on Twitter and Instagram and keep your eyes open opportunities are everywhere.