The $100K Club

[socal78]

Around 30% of Johns Creek is not made of Asians where as that number was only 13% 6 years ago. The Asian community here is vibrant and growing very fast.

Don't you mean around 30% is "now" Asian, not "not"? I'm confused.

Johns Creek sounds amazing. If I had no ball and chain, errr... I mean loving family.... I would skip town, sell my O.C. house, and move to Johns Creek. It looks soooo beautiful. A land of opportunity.

 

[panda]

Sorry about that SoCal,

Yes, 30% of Johns Creek is now made up of Chinos, K-pop stars, and Brown people = Indians.

Around 30% of Johns Creek is not made of Asians where as that number was only 13% 6 years ago. The Asian community here is vibrant and growing very fast.

Don't you mean around 30% is "now" Asian, not "not"? I'm confused.

Johns Creek sounds amazing. If I had no ball and chain, errr... I mean loving family.... I would skip town, sell my O.C. house, and move to Johns Creek. It looks soooo beautiful. A land of opportunity.

 

[socal78]

We just bought a brand new XLE Toyota Sienna with all the bells and whistles for $30k out the door. Every time my wife and I drive the van, we are so happy about the purchase and it is worth every penny.

Congratulations! Good choice. How are the twins? I am sure they are growing like crazy. 

 

[nosuchreality]

Minor nitpick, the Census Bureau's Factfinder actually shows Irvine's average household income as being $4K higher than Lake Forest.  Irvine's median income is $2K lower, $92K versus $94K.  Irvine is 3X the size.

 

[irvinehomeowner]

Minor nitpick, the Census Bureau's Factfinder actually shows Irvine's average household income as being $4K higher than Lake Forest.  Irvine's median income is $2K lower, $92K versus $94K.  Irvine is 3X the size.

The average may be higher, but the nerdwallet.com article is looking at "where more than 50% of the households in the city earn over $100,000 per year"... that's a different metric.

 

[nosuchreality]

Minor nitpick, the Census Bureau's Factfinder actually shows Irvine's average household income as being $4K higher than Lake Forest.  Irvine's median income is $2K lower, $92K versus $94K.  Irvine is 3X the size.

The average may be higher, but the nerdwallet.com article is looking at "where more than 50% of the households in the city earn over $100,000 per year"... that's a different metric.

That's median, and in neither city are they over $100K.

 

[panda]

Hey guys, these are some real numbers of two Johns Creek rentals I acquired in 2011 and 2012. I like the 2500 sq/ft SFRs 4bed/2.5 bath. These were the last new construction 4bedroom purchse in Johns Creek under $200k. The lowest 3bed/2.5 SFR in Johns Creek is now in $250k range so this year i am looking at pre-foreclosure opportunities for JC homes 10 years and younger to rehab and rent. The rental demand in Johns Creek is flying off the shelf with less than one month of inventory.

JC Rental #1 JC Rental #2
$191,000.00 $177,900.00 Purchase Price
$47,750.00 $35,580.00 Down Payment
$143,250.00 $142,320.00 Mortgage


$1,650.00 $1,595.00 Rent
$857.82 $875.00 PITI+TAX+INS
$125.00 $50.00 HOA
$982.82 $925.00

$667.18 $670.00 Month Profit
$8,006.16 $8,040.00 Year Profit

16.8% 22.6% Cash on  Cash Return

JC Rental #1
Annual Debt Pay Down $2,531.09 5.3%
Annual Cash Flow $7,406.16 15.5%
Appreciation $8,404.00 17.6%
Annual Return $18,341.25 38.4%

JC Rental #2
Annual Debt Pay Down $2,430.07 6.8%
Annual Cash Flow $8,040.00 22.6%
Appreciation $7,827.60 22.0%
Annual Return $18,297.67 51.4%

 

[nosuchreality]

Hey guys, these are some real numbers of two Johns Creek rentals I acquired in 2011 and 2012. I like the 2500 sq/ft SFRs 4bed/2.5 bath.
<snip>
JC Rental #1 JC Rental #2
$191,000.00 $177,900.00 Purchase Price
<snip>

So, basically an Irvine down payment buys a 2500sf 4/2.5 free and clear?

Obviously there are jobs, or median income wouldn't be better than Irvine.

 

[irvinehomeowner]

I am in contract for property #6 and i have a lender where i can get up to 10 mortgages with 25% down. You just need 6 month reserves for each investment property you own. If the banks shut me out.. I have no choice but to buy with cash.

Jeez... what a baller.

Are you a drug dealer? How are you bankrolling this? Do you have a 50/50 investor? Maybe you are the Tarek of the ATL!

 

[irvinehomeowner]

Hey Panda... if I send you $40k can you put it into one of those JC Gold SFRs for me?

 

[panda]

IHO,
My day job, I am a real estate agent in Johns Creek. My evening job..... I sell a lot fresh drugs to my high end clients in Buckhead and Sandy Springs and invest in JC rental properties with my proceeds.. That's why i can't become a buyer's agent like Trojan, as you are forced to work evenings and weekends.

I am in contract for property #6 and i have a lender where i can get up to 10 mortgages with 25% down. You just need 6 month reserves for each investment property you own. If the banks shut me out.. I have no choice but to buy with cash.

Jeez... what a baller.

Are you a drug dealer? How are you bankrolling this? Do you have a 50/50 investor? Maybe you are the Tarek of the ATL!

 

[panda]

Hey IHO, 

In a more serious note.. I moved to Johns Creek as I wanted to change my career and do something i love which is real estate. When I first moved here, I just had a broker license from CA and no idea how to get started. I started blogging on an Atlanta real estate website and provide detailed demographics information how thought living in johns Creek today is like taking a time machine and traveling back to Irvine 1997. I backed up my analysis with the numbers and trends i saw changing in Johns Creek and matched it up with the 1997 number of Irvine.

This one indian guy read my post and told me he was interested in investing in Johns Creek and wanted to see if I would meet him at a local Panera. So I was expecting to meet an investor around my age (mid 30s) and maybe make a new friend where we can discuss investing, but he was a wealthy guy in his 50s (An executive at Mitsubishi) already living in Johns Creek looking to invest his capital for a monthly income so he can retire in 10 years. I ended up selling him three rental homes in Johns Creek and he always asking where my next move is.

I know real estate agents are considered to be the lowest respected professions in every career rankings, but i was surprised that this guy really respected my knowledge of how i knew this area so well.

I guess I got lucky and this is how i kicked off my new career in real estate. It is scary at times starting a completely new career, but i know this is what i love to do, and if i stick with it.. I will do well in the long run and have more time for my family.

Hey Panda... if I send you $40k can you put it into one of those JC Gold SFRs for me?

 

[irvinehomeowner]

I guess I got lucky and this is how i kicked off my new career in real estate.

"You make your own luck [...]" - Hemingway.

Glad to hear you're doing well.

So in your blog, did you introduce my patented terms... 3CWG and FCB?

 

[usctrojancpa]

IHO,
My day job, I am a real estate agent in Johns Creek. My evening job..... I sell a lot fresh drugs to my high end clients in Buckhead and Sandy Springs and invest in JC rental properties with my proceeds.. That's why i can't become a buyer's agent like Trojan, as you are forced to work evenings and weekends.

I am in contract for property #6 and i have a lender where i can get up to 10 mortgages with 25% down. You just need 6 month reserves for each investment property you own. If the banks shut me out.. I have no choice but to buy with cash.

Jeez... what a baller.

Are you a drug dealer? How are you bankrolling this? Do you have a 50/50 investor? Maybe you are the Tarek of the ATL!

Don't feel too sorry for me.  Just like with you, I love real estate and have a passion for it.  Although it's true that most of my clients are buyers, I've been getting more listing business in the past 6 months.  I don't really consider being a realtor as a "job" for me but rather as my own business that I cultivate and grow where I can assist people with the largest transaction that they'll make in their lives. 

 

[lovinLife]

So I was thinking about the fact that Irvine isn't up there in the rankings and it dawned on me that this might be true because we have a large population of unemployed students in addition to FCB ballers with suitcases. 

 

[socal78]

So I was thinking about the fact that Irvine isn't up there in the rankings and it dawned on me that this might be true because we have a large population of unemployed students in addition to FCB ballers with suitcases. 

I've been rolling this around in my head, too. However, I had the opposite thought. We, including myself, keep considering the student population. But I have a feeling the kids who live in the college dorms probably still report under their "home" / parent's address. Many are not full-fledged adults at that stage. I'll leave it to the experts to research and pick apart - I don't have any data, just have a gut feeling the census household income reflects college kid income combined with their parents.

 

[socal78]

Is it just me or is there some tension between you guys, Trojan and Baby Irvine? Did something happen between you guys? I've noticed several comments back and forth. I've known you guys a long time now and this is not like you. But Baby Irvine, you also called Iho a monkey. So, maybe it's just some fun-spirited ribbing all around between you guys which I don't get.

 

[irvinehomeowner]

There is a large portion of students who don't live on campus and live in the different condos, apartments and SFRs in Irvine (we rented our house to some of them).

I don't know the procedure the Census Bureau uses but if no one at the home reports their income... it just doesn't get included in the numbers. We didn't report to the Census Bureau, so I'm sure our numbers aren't in the 2010 report.

 

[irvinehomeowner]

Is it just me or is there some tension between you guys, Trojan and Baby Irvine? Did something happen between you guys? I've noticed several comments back and forth. I've known you guys a long time now and this is not like you. But Baby Irvine, you also called Iho a monkey. So, maybe it's just some fun-spirited ribbing all around between you guys which I don't get.

facepalm x 2

P.S. I consider "monkey" a compliment.

 

[socal78]

We didn't report to the Census Bureau, so I'm sure our numbers aren't in the 2010 report.

That doesn't make any sense, Iho. A reply is required by law. The penalties can run hundreds of dollars. (I looked it up one year when I didn't feel like responding.)
Edit: Typo.