Spending $100 Million on Real Estate: Spring Valley Lake, Victorville, California [HouseHack Trip 3]

in this video you're going to learn a

lot about real estate investing some

very important principles to pay

attention to and if you want to Shadow

me in person as others have in these

videos well check out the link down

below and come join me as we go on one

of these trips that's one way to see

real estate here we go that's where we

were there's the post office the

stations well we're here I'm not exactly

sure where I think it's Spring Valley

I'm also not sure why we're here but

um we're I suppose here for house hack

to figure out why we should invest here

or should not invest here now I have no

idea what to expect but uh here's some

footage from our flight over and you'll

see all my optimism so let's get into

today and uh hopefully be very very

surprised all that available land is a

risk for that town you have no idea how

much extra building could be done

lowering the value of existing older our

homes unless there's something

attracting people to the center and

since I could see the middle of that

area in like a stone's throw I'm not too

optimistic about geographic boundaries

here now the big concern is what

actually keeps people moving to this

area are they only moving here because

it's cheaper to live here or are they

moving here because for some reason

there's some kind of big employment here

or vacation destination employment

vacation destination or weather great

fine but if people are only moving here

because it's cheaper and as soon as

cheaper Places come up or like you go to

Vegas where you don't even have the

state income tax like the California

desert where you do have the state

income tax some people are just gonna

move to a cheaper area eventually in the

future and these towns will die out this

is where you buy like

a thousand acres of land

for negative money

they pay you to take it oh my gosh so

many nuts I don't know is it too late to

turn around

yes you just don't know right like what

if we go there and the lake is like I

was not expecting anything good of

Gilbert and I was like Gilbert's gonna

suck and then I'm like Gilbert it's

awesome you know maybe we go to this

Lake and then I start stripping and then

all of a sudden it's like a vacation

destination you know and then uh we get

you know Airbnb rents pop and we just

kill it out here all right well we'll

just go

now this is how you get around this is

beautiful oh we're so excited to explore

we have no idea what to expect so we're

really excited to see my people come why

do people leave

um Airbnb potential rental potential

everything so we're so excited so we're

in Spring Valley Lincoln California this

is a community that started being built

in about 1969. we've got just over 3 000

households here and what we're finding

is there are a lot of homes of different

ages here as this wasn't all built out

by one Builder it seems like homeowners

sort of came in started buying Lots

individually uh and then built their own

homes with builders that they chose so

you have a lot of varieties of styles

like here's more of potentially 70s 80s

home uh whereas over towards the end

over here you're going to get a little

bit more of that late 90s early 2000s

looking home whereas over here this

looks like an early probably late 90s

early 2000s here maybe mid 2000s over

here just judging by the outside and

then back to maybe 1950s kind of home

here so you've got a little bit of um

yeah lack of homogenousness if you will

given that that's probably the three and

two here and that's like a mansion over

here then you also do have doc homes out

here which is interesting this is a very

recreational uh area where the people

with docks obviously have their boats by

the water the people who don't have

docks will have their boats uh either on

their property or out here on the street

you get to see sort of looking up the

street over here we got Boat RV RV boat

uh we got the Jeeps we got the wave

Runners so it's it really feels like

kind of like that vacation place you go

to to kind of retire so it's almost like

you want to retire in a vacation

community that seems to be what Spring

Valley Lake is now they do have the

Community College just outside they've

got the school systems outside you're

subject to Victorville uh City

permitting and overlays the whole

community's got a 100 HOA it looks

pretty nice in terms of they've they've

repaved the roads uh the most of the

properties are pretty well maintained

and manicured you're not you're not

seeing I think for example we were in

Salt Lake just yesterday and we saw

quite a bit of uh you know rusty cars

damaged cars blown out windows uh rusty

water heaters thrown on lawns people

growing crazy stuff and lots you're not

really seeing that here you're seeing

these are very very well kept homes

that's at least my first impression so a

lot of pride of ownership I'm seeing

again not a consistency in terms of of

type of property or age of property or

size of property but a lot of pride of

ownership I mean even when you see

stamped concrete like this this is a lot

I mean this was probably done about 15

years ago you could see it's starting to

lose some of its color but even still

this uh this is a pride of ownership

play right because you're spending more

money to do this kind of ribboning of

concrete on the side you're spending

more money to stamp a few more bucks a

square foot it's kind of nice so let's

take a look inside so this one's a three

bedroom probably oh three full bath it

actually says 1866 square feet this one

was built in 79 so about 10 years really

after they started in here interesting

okay so I see a lot of votes on the

street now is that because they've

lowered the water for the servicing

so oh so everybody takes them off yes

okay that's why we see more of them on

the streets and that Ah that's good to

know

they're on the docks here lifted or

however

just an annual maintenance that they do

out here but annually by annual got it

okay okay so sort of like spring fall

well I guess winter they always do it in

the winter in the winter yeah

yeah you got it and how long does it

usually last each time they they sort of

so this time it's longer than usual yeah

it's usually a couple months but this

time okay because seven months yeah yeah

because they lowered it lower because of

the coving they're doing major repairs

this year gotcha major repairs and

upgrades okay uh and so you were saying

that people will come by the individual

lots and they'll find their own builder

and that's why you have so many

different styles of homes because

everybody's built them custom

essentially correct they're all expect

homes in the same area yes ah okay yeah

awesome

okay so any kind of

I mean I guess the limitation would be

the width of a lot for for boat size

with and then probably what five feet on

each side or something like that what um

what are your usual widths out here

you're like maybe 60 feet uh you you

know the length of the boat well I guess

that's interesting because you have

u-shaped docks here uh in where's Lauren

in the Ventura Marina we get a lot of

the long docks right and then we'll

measure them usually as like 40 or 50

foot docks right here I'm noticing

they're they're but then again you're

not going there's probably a limit to

the size 22 feet Ah that's why okay yes

yes

right because there you're talking about

40 50 60 foot boats here the limit is 22

feet you said correct okay so you're

you're talking pontoons uh and smaller

uh recreational yes deck boats and wake

boards and you know ski boats got it you

know that makes sense yeah okay and uh a

lot of folks also have their RVs here

which makes sense I imagine uh you've

got a lot of people that enjoy both the

water and the land here where do people

go camping do they just go up to the

park the Mojave Park yes so okay they're

just right yeah yeah just right there

that's amazing

we have a trail here that needs actually

a biking trail that floats right into

that oh that's awesome yeah wow okay

yeah it's pretty nice uh and then let's

see so you've got do they have RV

parking somewhere where people can park

there so in the the higher part on

Ridgecrest yeah where we were at and we

came down yeah oh okay okay so to the

right side where you saw those those uh

that commercial area right there right

they have parking there gotcha okay yeah

so that way if there's less room on the

street or whatever you could just park

it there correct okay yes that makes

sense okay cool all right and is this

about your typical depth in the backyard

that you get is this usual if you have a

dock

um for the most part yes

well our house well we have a double log

yeah if you

there's only five double odds on the

whole leagues and you have one of them

yeah and is it is it then just in all

Dimensions or in One Direction You Go I

mean I'm assuming you have a double lot

width-wise yes yeah yeah so but yeah for

the most part they uh they all look like

this that's awesome yeah the majority of

them and except for like you'll see

those cul-de-sacs they're about 13 000

square feet ah okay okay that's where

you're getting the larger Lots I see but

because they're a little bit more on

those turns and the bows there okay yeah

all right that makes sense okay great so

this is a this is again a 79 style home

and it seems like yeah I mean single

stories two stories I guess just

whatever somebody wanted to build

probably the newer ones more two-story

okay so 79 single story here I'll I'll

have to ask how many people retire in

these sorts of areas I mean Lauren what

do you think to me it it seems like the

retirement style community that you go

to you know what reminds me of a lot uh

Leisure Village yeah yeah I I think I

wouldn't be surprised a lot of people

that have ambition and want to further

educate themselves would definitely go

outside of this area for college and

want to leave and probably not come back

yeah yeah I I don't I don't see a

massive attraction for for uh higher

income folks staying here I think this

is where this is where my income kept me

and then I moved here yeah yeah yeah

yeah but then you have amazing amenities

sure right yeah

So Okay so we've got oh this is almost

like a double master here

yeah so another problem that I think

you're going to have is if everybody has

their own spec homes then it's actually

very difficult to comp the properties

because you can't do model match comps

because it's not a tracked yeah and the

best generally type of investment that I

enjoy the most are tracked homes sure

because if I want to buy a three bedroom

two bath that's 1721 square feet I can

find 10 others of those and no those

have problems with settling there those

have problems with that these are the

comps these are the values if every

single house here is unique because

they're all custom built that makes it a

lot harder yeah for example this doesn't

initially strike me as the typical three

and two style because it almost looked

like you had a double master here uh so

you've got so you've got your master

here got this sort of more open I think

it's important to note too that even

with custom spec homes like if you look

at the Ventura Hill style Hillside that

got demolished a lot of it for the

Thomas fire there are known Architects

that actually have building plants that

even though they are custom spec homes

you could just know from the Builder

that the layout's probably going to be

pretty good you know not that that could

necessarily help with your your comps

but at least you would you know kind of

have some normalcy going on there it

would take a essentially what Lauren is

saying is if you're that local expert

and you know ah that one Builder has the

best floor plans you can comp amongst

those the problem though is you have

less of that right yeah so let's say you

have a 4 000 homes here or three

thousand we'll go with let's make the

math easy let's say you have a thousand

homes if 50 of them were built by one

Builder and three percent of those turn

over every year you're only talking

about one or two homes a year that are

selling from that one building yeah so

your your comps are going to be far and

few between for each Builder but yeah I

think each Builder would have their own

reputations and you'd almost have

different values based on this I think

so because that's what we see on the

hillside oh yeah it's just a pain in the

butt because every single one is very

difficult to comp yeah uh especially

with the hillside too you get different

views that's true here now you have to

do different builders you have different

sizes you have different ages because

there's no consistent age right yeah and

then okay who's got the better position

on the lake or versus no Lake right

that's that's also interesting is Lauren

uh just brought up that in for example

our Ventura Keys Marina we originally

had the entire Ventura Keys built out by

uh attract a developer and they were

called Pace Setter homes and then what

people have done in the last 10 15 20

years is you've seen people come in and

we're going to take that original 1960s

home scrape it and rebuild some amazing

20 20s Plus or yeah and I think I don't

know and it's maybe unfair for me to

judge just from outside appearance but

when I see the Ventura Marina homes

getting scraped and rebuilt the outside

looks like damn

that's like quality and then I'm going

around here and the Realtors are saying

here's a new build here's a new build

I'm like uh like you know it's I don't

know I just think that it could be

better done sure yeah sure oh this is

the I this looks like another Master to

me

yeah so so you have another sort of mass

tweet which is fine but now where's our

third bedroom on the other side okay so

they separated which I mean that's

actually interesting for like sound

purposes because then you said oh oh

down this way

oh here it is

oh wow that's wild look at this

yeah I mean you get

oh they brushed her teeth in the shower

I mean I guess that's that's

multitasking yeah how many retirees you

get here is that mostly what you're

getting here you do get a lot especially

on the water you get a lot of retirees

got it um most of our neighbors are

retired that makes sense yeah yeah yeah

now what's interesting is you have all

the space but they're still choosing to

park on the grass the the car behind me

that doesn't make sense I don't get that

I

yeah I don't know it's weird I don't

want to seem mean but I wonder if like

break-ins are a thing with their cars

and if they have them on their lot maybe

that's less likely because if bug bites

or something I don't know so what's

crime like uh around here oh right here

yeah it's very good it's almost

non-existent I mean we have the 24-hour

surveillance oh the security that drives

around yeah yeah okay so we have that we

also have uh a small sheriff's station

in here as well oh wow inside like a

substation yeah we also have a uh Fire

Department in here as well oh wow so so

yeah it's it's very very small that's

awesome that's great from the high

desert it is aside from the gated

communities over here it is oh are there

the gated communities within uh Sun uh

within this neighborhood then no no no

no where are they oh in the gated

communities are in Apple Valley got it

got to get it I understand you know one

of the downsides of uh large retirement

populations is often there's a limit to

how much you can really spend on

continuously renovating right because

you've stopped working and you're trying

to live off the rest of your assets

so think about it most people who end up

you know when it's time to pass away

they don't have the most modern home

anymore right it's usually people who

just retire Remodel and then when they

move it's it's dated right

now when you have a neighborhood that

appeals to more retired people it can

mean that over time you get less of that

upgrading right or more dated renovating

everywhere uh sure of course that could

open up the idea that maybe you'll find

individual wedge deals right but you're

not getting that fresh injection

regularly from other people like maybe

uh you know I don't know uh White Collar

professionals who just got promoted at

their job and they're like yeah I'm

doing new Landscaping right because

you're not getting that boost to income

anymore okay next

what are your thoughts on the vine

growth I think it's a a really good look

but what are your thoughts on this look

Vine growth looks awesome it gives you

that homey feel for a house I think it's

great in terms of uh when you have it

manicured it looks beautiful problem is

it damages the stucco leads to more

moisture intrusion into the house so

you're gonna get more rot behind there

and so definitely a maintenance cost

comes with having it I wouldn't have it

on any of our house high properties I

would get plants and growth away from

the properties for sure by the way shout

yourself out where where are you from

who are you why are you here everything

yeah so my name is Brandon Howard from

Northwest Arkansas uh I'm here to

obviously do a little uh shadowing of

Kevin who uh I think is just a wealth of

value and also trying to convince him to

bring house hack to Northwest Arkansas

where I think is is truly one of the uh

the deepest uh values in in the real

estate game so gonna spend the rest of

the day trying to convince him to get

down to beautiful Northwest Arkansas

well thanks sir me today thank you yeah

all right let's keep looking at real

estate see so this is an 85 property

right here and you can tell it's an 80s

property when you look back over here

what you end up having is what looks

like a 2018 property so you do you get

those differences this one backs up to a

golf course three bedroom three full

bath just like the last one 2171 square

feet uh was this one again 465 for this

one and 510 for the last one two story

here this one on a busier Road this is

on the Country Club Drive one of the

main roads through here it does back up

to one of the multiple golf courses we

have here we got some some rot

it's all right that's one of the

important aspects of wedge deal you

gotta have rot mold is the best the

reason that the 1.4 million dollar home

in the same neighborhood isn't selling

because it's surrounded by so many other

four or five hundred thousand dollar

homes definitely don't want the most

expensive home exactly you want the

opposite you want to be surrounded by

million dollar homes and get like that

500 000 home with a fixer-upper right it

is a little tougher to comp these it's

tougher to to maintain any kind of

higher value when you have older drag

you down like anchors yeah they're

anchors so uh we also heard that uh

actually Trish you mentioned that there

was another neighborhood newer

construction but it's 55 and older only

so you get those restricted

neighborhoods uh yeah I I personally

want to have the widest rental market

possible so I don't like any

restrictions here no restrictions so

what's the what's what's up in Arkansas

why would somebody go to Arkansas how

are you going to compete with Spring

Valley not not to off Indiana but you

know we we have a real a real Lake for

one uh not not that this isn't a real

lake so it looks more like a reservoir

but you know it's a lot of fun to get

out there and and have uh I don't know

the the nature to spend time on you've

got Devil's Den we've got a lot of

different

hiking trails

there's some devils but Devil's Den is

an awesome hiking trail got University

you've got incredible job drill to the

Walmart Tyson JB Hunt um so you said

like Corporate Offices yeah Corporate

Offices everything that runs Walmart is

located in Bentonville um in the

surrounding areas so you have that in a

good way anchors the community as well

as JB Hunt and Tyson a lot of population

growth right so that's North Northwest

Arkansas Northwest Arkansas yeah

Fayetteville you've got the university

then you've got Bentonville where you've

got a lot of the Walmart facilities

there and then Rogers we've got Beaver

Lake Lowell Cave Springs there's a nice

little collection of cities that we are

very fond of and we love all of Arkansas

but Northwest Arkansas certainly stands

out among everything else in Arkansas

nice thank you for that let's go check

uh check out this house so this is

always quite complicated or challenging

for older folks is is any kind of Step I

think that's why the cones are here

because you have changes of flooring and

you're appealing to uh likely an older

demographic uh and so at least it's

obvious that there's a flooring

transition change here but that uh you

know that's going to turn some people

off because you can't get around with

let's say a walker for example but then

again you probably wouldn't be looking

at a two-story home so uh oh this is a

very nice backsplash uh I'd like um just

how clean it looks they've actually gone

from what you usually see is that sort

of sparkly style quartz to what here is

just a pure white quartz it's kind of

nice look at Lauren this is like a new

version of sparkly white it's just pure

white

is kind of going away and then just like

the Sleek like flat tone or not flat but

just solid tone to compare with like

that gray mineral rock that you usually

see crushed up into it this is just like

salt the one negative to that though is

that you will literally see everything

even with a white sparkly speckled or

whatever even though it's white at least

it does disguise stuff a bit more than I

never spill on the counter yeah coffee

spills yeah what's your thought on the

the white cabinets with the white

backsplash white countertops with a

white flooring I mean how's that going

to mix it up a little bit on on the

floor for sure floor for sure and I I

personally think the longevity and the

timelessness of a white kitchen that's

always been a thing even when I started

in 2008 you get mad at me when I do gray

yeah because it's going to go out and

you know white could go out too but I

don't know since 2008 everyone I sit

here every wife going to look at a

property I love a white kitchen I love a

white kitchen I don't know I think the

floor here changes but yeah like a

luxury vinyl plank and it was that that

brown whether it was lighter or darker

like matte uh black knobs Hardware oh

the contract that missing Hardware here

exactly yeah good call yeah and yeah

yeah I don't think that you should have

a white kitchen either I think that even

the Edgecomb gray could be done

throughout and it gives that nice uh in

terms of the wall paint yeah because

then you would have contrast I mean this

would be the refrigerator here but just

so you can see it would be a gray

contrast to here

white bricks like right over there I

painted brick Oh

I would take that over it being the

traditional red yeah if you wanted to do

a cheaper route of trying to modernize a

bit you would paint it white yeah right

there there is not even a fence this is

another one of the things no consistency

in terms of backyard so here you have

zero fence uh we have to sort of guess

where the law line ends we could lighten

it up with the neighbors but here you

have this white metal fencing over there

you have black fencing over here and

this is curved white fencing over here

uh you don't have any stone work you

just have white fencing around the white

metal fencing so every house has a

different

thesis for or for uh they're fencing in

here of course you have a lot so

somebody else is going to eventually

build there I would assume wait this has

an HOA yeah yeah see you're saying that

in a surprise way yeah I'm surprised of

a lack of consistency yes yeah I think

though that is paying for the pool and

the tennis courts the amenities okay

yeah I will say aside from the lack of

inconsistency it's a pretty it's a

pretty beautiful view this is it's nice

unless you get attacked by those geese

those that are coming for you do you

have to pay separately for the country

club for like the golf course and that

yes that's like a membership fee to be

part of it okay and then you can use the

the amenities like the pool I see so the

hundred dollars is that's more of to be

part of the association so the hundred

dollars for the community to live in the

community okay

off for the lake and that okay okay got

it but that doesn't then get you uh the

golf course and the pools because that

that's part of the country club correct

gotcha how much is that about so that's

around like four or five hundred dollars

yeah and per month on that correct

gotcha okay okay take it over so

so price might go up it varies we don't

uh TBD okay gotcha yeah yeah very well

okay let's take a peek up here

okay

master so that's actually interesting

people might move into this neighborhood

thinking oh I'm gonna get access to the

pool and the golf courses and the

amenities that are here but the 100 HOA

fee only gets you access to the lake it

does not get you access to the golf

courses and the pools another 400 bucks

a month oh okay so now if you wanted

both ho well you have to have the HOA

but you also wanted the other amenities

looking at 500 bucks extra per month for

both of us maybe that makes sense though

because maybe something well no but

maybe only somebody wants like an owner

wants one of those things and doesn't

want to pay the phone out but if you

were here as a landlord renting it out

yeah then you're you're producing your

opportunity yeah you're probably eating

most of that cost yeah you know you

could say oh tenant to pay but then if

your competition is offering it yeah

yeah all right ooh see this is like a

wedgie bathroom right here oh yeah this

is your perfect this this is what the

algo picks up as well the the alvo loves

this for wedge this uh handle here right

here love these what we usually do is we

turn these into can lights so we'll put

two or three can lights here instead of

this yeah this Cabinetry is actually

good quality great quality paint and

perfect to paint

light sand knobs it's got the drawers no

chips no chips it's actually in great

shape even if it had a little chip it

would fill it in and then paint it but

it's in great shape this tile

you know what I'm thinking

uh glazing it glazed yeah this is great

look at that in the tile no chips harder

to fill in tile chips right but this

tile is a great shape to glaze this

modernize the uh uh the picture here

maybe frame around the mirror lighter

paint on this this is way too dark for a

bathroom and obviously this

ah it's gonna get some nice spray

painting as well we get flowers on the

tile is that a sticker though because

it's like it's an edge oh no that's part

of it it's part of the top yeah yeah

yeah but it's it I know maybe it would

show through a little bit it is raised

right this is the tile oh no I know it

is but if you were to glaze it would any

of this design show through I wonder you

could probably like steel wool it off

maybe super flat yeah steel wool it off

and then probably maybe a new door or

something or just go to curtains

obviously even if it were showing a

little bit it wouldn't be worth

completely redoing it for a little bit

of a flower design because if you

generally have the bathroom modernized

and that was the one aspect where it's

like oh there's like a little design

that I don't ideally like it's not going

to make a difference with rent and

nobody's gonna know yeah all right I'm

done me too let's go when's our coffee

break

where's McKay

where's the boss yeah we've done that

before where we've stained before it's

painted sometimes the stain could be

pretty nice on some of these it depends

you know like for example you could do

the handrail in a darker stain and then

maybe like one of these as an accent

sure because there's a lot of white

right now however we think a lot of that

would change

if it was all one consistent floor

because here you've got one two three

four types of floors you've got a

different floor right here in the

bathroom so you've got five different

types of floors just from where I'm

standing right now all one consistent

for huge change and that's gonna give

you some contrast that maybe you then

don't have to go to staining it's

painting is obviously easy to stay nice

but he was saying wouldn't it make sense

and it would if you could somehow make

this normal and close it off because it

seems like it's a waste of space oh

right it's like you have a little

storage closet luggage or something

there yes but that wouldn't really in

the long game actually make a renter's

perspective yeah what you guys are doing

yeah right no another thing that's going

to make it difficult is it's an open

snare concept here right so that way

when you walk in that's right yeah

that is like oh shoot I didn't think of

that now I'm committed to this idea but

oh I need to do the stairs now and then

yeah and then well and the idea is that

originally when they built it this way

is that you could come in and still see

some light through it it makes it feel a

little bit more open that's what they're

trying to do with the vault as well but

hello how you doing retired probably I'm

assuming I'm making assumptions I'm

assuming the guy who walked by was

retired when's coffee now so the next

three properties that we have are all

three bedroom two bath uh they vary in

square footage from 1400 to about 2100

square feet they are anywhere between

420 000 to 460 000 uh dollars 27 days on

the market 54 55. we are this one I

believe is backed up against a part of a

uh a smaller portion of the golf course

but otherwise pretty consistent here

across the board to what we've seen

already with uh both of the other homes

that we see in right next to the door to

the uh to the 80s so right now I think

what we need to do is get some coffee

coffee is there great coffee in the

neighborhood all right coffee break look

at how big those croissants are those

are big it's the most excited I've been

all day

is that

thick long

croissant are you gonna get it oh I'm

going to get it okay I'm going to put it

all in okay I might even eat it while

riding the pp oh wow

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it's right here introduce yourselves

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want to shout out y'all are amazing and

you are an inspiration with what you've

been through 10 years in a wheelchair

here and then Iron Man this is

incredible so I'm Daniel uh this is

Deanna Villa you can find us at Fitness

Realtors and uh Instagram handle and

Fitness realtors.1 yeah thank you again

that's awesome if somebody wanted to

call you best way to do that best way is

626-632-2288 thank you thanks so much so

I'd like to start by saying the variable

cost for us flying here and back at

about 40 minutes round trip in the air

is probably about 900 to a thousand

bucks that's the variable cost of us

having gone and brought nine to 11

people around a few Pilots that's less

than 100 bucks per person round trip on

this puppy as a variable cost for what

it costs for us to go here now there's a

very specific reason that I've started

with that and Lauren is going to tell

you all about go ahead Lord

um so I do I will say I think it was

important to come here because I did not

know that Central Desert California that

there could be a place like this where

it Incorporated a man-made lake and

tried to build a community around that

uh so that kind of was the draw as to

why we originally came I will say that I

don't see there being any potential in

buying any deals here I don't see enough

of a draw I wasn't enough impressed with

that community

so I'm glad kind of to rule it out in a

sense I kind of stick generally with

what I've always thought with this area

in California I know there are certain

reasons why people stay in this area it

is definitely much more cheap like much

more bang for your buck type thing but

it comes at a consequence because the

weather is very very drastic winter is

colder Summer's very very very hot and I

generally don't understand why people

live here because you could literally

save on taxes and so many other aspects

by hopping the border to Nevada or

Arizona so I kind of think this might be

maybe deemed a better community in the

Lesser good area of the Desert

California Central area but still just

not enough of a draw to invest our goal

was outside of let's say like a Palm

Springs to try to find okay what what

potentially is the highest quality area

within this portion of the desert and so

what you find is you get people from Los

Angeles come to here but after they live

here for a bit they either don't move

anymore because they don't have any

money because they've run out of money

or they have just enough money to

survive so then they stay here but

they're not spending more money on

upgrading anymore or they end up going

to what we heard Florida Texas Vegas and

Arizona yeah because again now you're

cutting your income taxes in half or

more going to Arizona or to zero if

you're going for state income taxes uh

going to Arizona or to Nevada or Florida

right so if you're gonna live in the

desert just hop over to Vegas one of the

other concerns is the ability to just

continue expanding new neighborhoods the

neighborhood we were in not very

homogeneous would make it very easy if

the desirability was there for a

competing Builder to build a lake of

property and then build tracks around

that yeah but what we're noticing is not

actually a lot of track tone homes for

families this is not appealing to your

average American household it's

appealing more to the demo that is

looking for a low cost of living and

it's a place to settle down you've got

some entertainment you've got a lake

that right now is shut down for about

seven months but that'll come back right

and it's probably a wonderful place to

RV and be recreational uh so I'm

optimistic about that for people who

want to move here and retire and they're

coming from La hey hit up these Realtors

that's great they are wonderful people

fantastic people knowledgeable another

aspect that they were saying that's a

draw for the locals is that it's only

about an hour away from ski slopes or

snowboarding I will say though like in

the Airbnb aspect of if you were to

think of maybe that being a draw I think

people would ultimately just go straight

to the destination they wouldn't choose

here and say oh I'm going to hang out at

this man-made lake for a little bit and

then I'll drive an hour to go skier

snowboard too I think that they would

just go to the snow location yeah in

fact the neighborhood we were in uh the

estimate was maybe there are three or

four air airbnbs out of 3 000 Plus Homes

so you I mean you're one tenth of one

percent or less because I don't think

it's economical I I think the idea is

hey you move here and you

you spend your rest of your years I

think that too and yeah I think and I

don't want to sound mean but I I would

say that the people that really want to

further their education I I could see

them wanting to leave and go to a bigger

University and if they got an education

that paid well I don't think that they

would necessarily come back here I think

that they would choose if they wanted

that same type of climate to go to Vegas

or or you know somewhere that's cheaper

one of the things that we've noticed

about for example Ventura County

California is that people will leave to

go to larger colleges but they come back

their family stays there and they want

to raise their children there as well it

has that draw and that's the thing too

like we saw that doc home and it was

about five hundred thousand dollars and

same.com style say and it's equally

dated you know everything basically the

same size whatever in Ventura would be

probably over twice the amount right two

to three accidents yeah two to three x

easy and I I know that I say this a lot

but there's a reason why California

Southern California coastline is so

expensive is because the weather is

gorgeous year round basically I know

we've had our rain issue lately but

generally speaking it's so gorgeous and

you have to say that you know the first

500 600 000 for any property you're

basically paying for the weather it's

just so nice so that will always be a

consistent draw and I think that that's

something really important to look in

every real estate market is what's the

consistent draw yeah yeah and that's

also important for rentability now

remember what we're looking for with

househack is we're not looking for that

custom home that's very customized or

specked out the ways a certain retired

couple maybe wants it we're looking for

the average household style home that we

can get at a discount so ideally if we

can get 2015 built tract homes that

somebody didn't take care of or somebody

hoarded in or there's some mold or some

updating we need to do that's great

because then we don't have to worry

about the systems because they're also

relatively brand new they're in great

areas where people are building like

crazy and it's easy to comp a lot of

risk with comps here so again maybe a

great place to come to retire does seem

like though people pit stop here that's

a concern I had is that I agree or Pit

Stop they're moving from uh they're like

well we don't want to leave California

for whatever reason I don't know maybe

they like Newsome like I can't imagine

that but they live in SoCal Coastline

and it's beautiful and they can afford

it yeah yeah uh but but or they can't

afford it then they move here yeah but

then they realize wait why why here why

am I doing that if I could just hop a

little bit more and actually save more

money and have more amenities yeah well

even uh one of our friends on on this

flight uh he came from NorCal and he's

like I think I pit stopped here a few

times uh on my way down yeah yeah it's

yeah it's kind of like it's a charging

stop yeah yeah we went to visit Spring

Valley Lake which is right there we are

now flying away from it

okay we'll get the g-forces that this

looks amazing go ahead and take a look

at the lake that we were doing our low

Passover

and now we're done so we're flooring it

out of here back home be home in 15

minutes let's go that was awesome