March 24, 2025 • 31 mins
In this episode of The Rent-ish Pod, Zach, and Patrick exploreÂ
- how climate change could impact home values, breaking down key insights from a recent news article.Â
- Then, real estate expert Mary Ragano joins them for another exciting round of Guess the Jargon, testing their knowledge on industry lingo.Â
- Finally, they answer listener-submitted questions, tackling everything from market trends to rental tips.
🏠Have a question for us? Email us at questions@therentishpod.com, and we might feature it in a future episode!
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
SPEAKER_00 (00:32):
What's going on everyone?
I'm Zach and I'm here withPatrick.
What up?
We're your hosts for theRent-ish podcast, a podcast
that's kind of about rentalproperties and hosted by two
guys that work in the realestate industry and sort of know
what they're talking about.
But mostly we don't.
(00:53):
That's right, Patrick.
Mostly we don't.
It's your catchphrase now.
I like that.
Which is why you'll have funhearing us talk to experts and
learning with us or laughing atjust about how little we know.
Today's episode, Patrick, we gota good one for you.
We're gonna talk about climatechange and all of the news
around that and how it impactsthe real estate market.
(01:13):
We're also gonna talk aboutChurchill Downs, which is a
history of iconic buildingssegment, and then we're gonna
wrap it up with listenerquestions.
I'm excited.
Yeah, it's gonna be a good one.
How you doing, buddy?
You doing okay today?
Doing good.
Coffeed up once again.
Coffeed up once again.
So you're doing your afternooncoffees now.
You're getting caffeinatedbefore the show I'm not I'm not
(01:35):
doing morning I used to have agreen tea with honey every
morning but I'm trying to cutthat I don't want to be like an
addict you know what I mean butlike on days where I need an
extra boost like before thepodcast yeah a little bit of
black coffee never hurt anyoneoh you drink it black I'm
drinking well with like likesugar and cinnamon that's not
black that's sweet oh well okayoh it's fine it's sugar and
(01:58):
cinnamon is that what you saidyeah I mean in the office we got
like a brown sugar cinnamon likething I just go like you know,
just dump it in there and thenadd some like just powdered
sugar, like white sugar,whatever you call that.
Got it.
Yeah.
When I drink coffee, it soundslike how I drank coffee when I
was a kid.
Like when I wanted it to lookcool, I would just pour sugar,
endless amounts of sugar in thecoffee thinking that I was like,
cool.
(02:19):
Cause it's like, Oh, adultsdrink coffee.
I want to drink coffee.
Oh, okay.
Wait, how are you?
Do you just drink it likestraight black or do you add?
So hot coffee these days in myolder years, I've been drinking
it with a splash of unsweetenedvanilla oat milk.
Okay.
But that's about it.
I, I typically prefer black icedcoffee, black hot coffee.
See, when I'm at a place, I'llget a vanilla oat milk latte.
(02:43):
But I'm not making that.
We're going through the work ofdoing that.
The curing can't do that.
Absolutely not.
Yeah.
All right.
Well.
I'm going to switch gears.
You want to talk about propertymanagement and real estate?
Yeah, let's do it.
That's why we're here.
Okay.
All right.
How climate change could impactyour home value.
(03:04):
Okay.
Patrick, did you read thearticle?
I forgot to read the article.
Okay.
Didn't do my homework this time,unfortunately.
0 for 2.
Love it.
With climate change becoming agrowing concern, homeowners are
starting to see its impact onproperty values as extreme
weather events and environmentalrisks reshape real estate
markets.
So there's an article.
We'll link to it in the showdoc, I'm sure, or something like
(03:25):
that.
But it's from the U.S.
News website talking about howclimate change may impact homes.
They dive into a lot of reallyinteresting stuff here.
Main key points of the article,risk zones and market trends,
homes and areas vulnerable tofloods, wildlife.
Wildlife.
Vulnerable to wildlife.
Homes and areas vulnerable tofloods.
(03:46):
Australia.
Wildfires.
I can't say this
SPEAKER_02 (03:50):
word.
Homes.
SPEAKER_00 (03:52):
Wildfire.
Is that what you're trying tosay?
Thank you, Ben.
Yeah, I'm just going to have yousay that.
Or hurricanes face higher riskimpacting their attractiveness
to buyers.
So basically saying with the waythat the world is going with
climate change, temperaturesrising, stuff like that,
different environments justbecoming different in general,
things becoming escalated,floods, wildfires, hurricanes.
(04:14):
You got to keep that stuff inmind because market values in
coastal or flood prone areas maydecrease due to anticipated sea
level rise and weatherunpredictability which will
deter long-term investments.
And this plays into the stuffwith insurance and
affordability, right?
So high-risk zones often faceescalating insurance premiums or
(04:35):
limited insurance availability,which directly affects mortgage
accessibility and affordability.
So if you live in one of thesezones, you might have problems
getting insurance.
So my dad lives in SouthernCalifornia, and he'll FaceTime
me every now and then.
As he's on a walk in hisneighborhood, he'll flip the
camera and be like, look, andit's just like a fire on a
mountain in the background withsmoke.
(04:55):
And he's saying insurance, it'stough to get insurance out there
now.
Sure, I bet.
Yeah, buyers may hesitate toinvest in properties too with
those high insurance costs,which would reduce the market
demand and lower value generallyin those regions.
Now, shockingly, I don't thinkCalifornia property values are
going to have any issue withinvestment.
(05:16):
That seems to be one of thosestates that's just impervious to
this kind of stuff.
But you never know.
The article seems to think thatthis could shift it.
I mean, Long term, it certainlycould.
Yeah, you never know.
And then demand shifts.
So there's a notable trend ofmigration towards, quote,
climate safe areas.
So shout out to the Midwest.
Yes.
Or the Northeast US, whereextreme weather is less
(05:38):
frequent.
I saw this list.
I think it was compiled byRealtor.com.
I got it here.
Top 10 cities with the lowestrisk of climate disasters,
including hurricane, fire, andflood.
Ohio, our home state, has six inthe top 10.
The number one is actually myhometown, Alabama.
Akron.
You did it, Akron.
Yeah, I know.
We got number one in somethingbesides rubber.
(06:01):
Rubber?
Yeah.
That's Akron's?
Akron Rubber?
Rubber capital of the world.
Of the world.
Goodyear.
Yeah, hey, that's right.
Goodyear is headquartered there.
Firestone started there.
I don't think I knew that aboutAkron.
Yeah, the Akron rubber ducks.
Yeah, we're known for that,LeBron.
And now, apparently, being thelowest
SPEAKER_02 (06:23):
risk...
Stuck
SPEAKER_00 (06:24):
in LeBron.
LeBron.
LeBron's our guy.
He's like our hero.
Just a kid from Akron.
Yeah, just a kid from Akron.
Oh, who else?
The Black Keys.
They're from Akron.
Oh, yeah.
They are from Akron.
Keep going.
Yeah, do it.
I'm a lonely boy.
I've seen them live.
They're great.
(06:45):
Oh, you have?
Oh, yeah.
A couple times.
I've not.
Yeah, Cincinnati's number fiveon the list, by the way.
So anyways, we're in a greatstate.
You know, move to Ohio.
Yeah, I mean, seriously, it'slike we talk about this all the
time.
Like me and my friend, I havefriends that live in Orlando
recently impacted by HurricaneEileen or Irene.
Was it Eileen or Irene?
I don't remember what it was.
(07:06):
Helene.
That's what it was.
They were impacted by thehurricanes down there.
And we were talking about likehe used to live in Cincinnati
and like kind of missed the factthat he had stability with like
weather conditions when he livedin Cincy.
I mean, we get freezing coldweather.
We do get snow.
We get ice.
We get lots of rain.
But it's like we very rarely Wesee tornadoes.
We definitely don't get residualhurricane impact.
(07:27):
Wildfires is not a thing in theMidwest.
It's a pretty stable four-seasonsort of situation.
Yeah.
Last thing on the list here,just to note the investment
long-term value.
These high-risk areas may facedeclining investor interest due
to the unpredictability ofclimate impacts on property
values.
And then conversely, areas withlow environmental risk tend to
attract more consistentinvestment, supporting steady or
(07:48):
increased home values over time.
Yeah.
I mean, it makes sense.
Yep.
Ready for some trivia facts?
Let's do it.
Okay.
Waterfront property risks.
About$34 billion in real estatealong the U.S.
coast could be underwater by2050 due to rising sea levels.
This comes from EPA.gov, so youknow it's legit.
I had no idea it was that much.
(08:10):
One of my friends, we were on abeach somewhere, and he's big
into finance and investing andstuff.
He's like, these idiots buyingthese mansions right by the
ocean.
I don't know.
Hey, if you're in it for theshort-term gain, I guess.
But yeah, if you're maybeplanning on owning that property
until 2050, you might have aproblem.
Yeah, I don't know.
It seems like it could be risky,yeah.
(08:30):
$34 billion in real estate.
That is an insane amount.
It's an unfathomable number.
Heat waves affect rent prices.
In hotter cities, demand forair-conditioned units can push
rents higher during extreme heatperiods.
Yeah, I mean, it makes sense,right?
When you have hot summers, thesummers keep getting hotter.
Those air-conditioner units arebeing pushed to the core.
(08:50):
So it's like...
By a thread as it is.
Do you have, is your buildinglike central air or do you have
like window units?
Cause you live in over the, ifpeople out there don't know, you
live in over the Rhine, which isa historically old part of
Cincinnati, like really olderbuildings.
So my building was like, Ithink, I think it was a police
station back in like 1880 orsomething.
(09:11):
So it's an old building, butyeah, it's completely renovated.
I have central air, like artit's on the roof, but like I
hear it when it's going, youknow, I hear it, you know, so
we'll see how much longer thatthing's got.
Yeah, I've lived in olderbuildings in Cincinnati that
didn't have central air.
And in the summers, it was likeunreal.
And it's only getting worse.
But it's like my air conditionerunits, like window units in
(09:33):
every room.
Electricity bill would be like$300 a month.
My last apartment was a windowunit.
Yeah, oh my goodness.
Terrible.
The Amazon's role.
The Amazon rainforest producesabout 20% of the world's oxygen,
but it's also at risk of turninginto a savanna due to
deforestation and warming.
Wow.
You don't often hear the wordsavanna.
when it's not a human being.
(09:56):
I had no idea that much of theworld's oxygen.
I mean, beyond just thedeforestation aspect being
really sad, that's just a lot ofoxygen that we're missing out
on.
Yeah, we're going to have to getused to thinner air.
Get that canned oxygen.
Denver all the time.
The Lorax, have you seen thatmovie?
(10:18):
Like the terrible Illuminationmovie?
No, I've seen the originalLorax, the animated one.
Like the 2D animated one.
Oh, okay.
There's one like a 3D one fromlike 2010 or something like that
where like the bad guy likesells canned air.
That's what made me think ofthis right now.
Okay, got it.
So like that's going to be us.
That might be us.
That might be us.
So what kind of weather eventsdo you think are most worrying
(10:42):
for home buyers today?
Do you have an answer?
It's a tough one.
I have no idea, truly.
I mean, it seems from myperspective but it seems like
the fire situation out West isgetting like consistently worse.
But yeah, no, I, I, I agree withthat fires.
I mean like the crazy thing wasduring the hurricane season this
year, there were cities likeAugusta, Georgia, Asheville,
(11:02):
North Carolina.
They got hit with residualflooding and bad weather from a
hurricane that was all the waydown by the Gulf.
Right.
So it's like, if that situationcontinues to worsen, that might
be a thing.
It's very rare that, like,middle of the state southern
towns and cities and stateswould have to worry about
hurricanes.
Right.
But the...
The more that climate changeimpacts that stuff, the worse it
(11:24):
could get.
So I think that that'sconcerning as well.
Yeah, for sure.
Should people buy homes inplaces with climate risks if
they're more affordable?
Patrick, would you say you hadthe money to buy a place in a
beautiful house, California, 12bedrooms, 12 baths?
Beautiful backyard.
If I had that money, I'm not–no, first of all, if I had that
(11:44):
money, I'm not investing inCalifornia.
That's what you're asking.
Oh, sure.
Okay.
Well, hypothetically, you hadto.
And it's right next to like abig open park filled with a
bunch of pine trees.
Are you doing it?
If I have to, I have a choice.
What?
No.
If I had the money, I wouldpersonally– because I would want
to do more of a long-terminvestment.
Now, like in terms of ashort-term investment, like flip
(12:06):
the house, like make a quickprofit.
Sure.
It might not be the worst ideain the world.
But if I'm investing money in along-term property, I want to
get the appreciation of theproperty.
I want to get consistent rentalincome.
I'm choosing somewherepersonally in Ohio or in the
Midwest where you don't have toworry as much about these
unknown variables, right?
(12:27):
Yeah.
That's smart.
I definitely would not– takethat risk.
Like if it was an either orsituation.
(12:55):
But if you had to invest.
But if I had to invest, I would,yeah.
All right, so to wrap it up,climate change is altering the
real estate landscape, makingsome properties more vulnerable,
others more desirable.
As environmental risks increase,understanding these impacts is
essential for anyone consideringa home purchase or investment.
(13:15):
So much like we always say,Speak to a professional.
We've got some facts here, Zach,but speak with someone maybe
with more facts.
With more facts, better facts.
Okay, cool.
Well, I think next up we'regoing to talk proptology with
Patrick.
You're back in the saddlehosting the seat.
Speaking of saddles.
That was too perfect.
(13:38):
Churchill Downs, the iconicracetrack in Louisville,
Kentucky.
As we know, the, what's thatthing called?
The Kentucky Derby.
Oh my goodness.
What's that thing called?
That was the main part.
Can I admit to the audience thatyou found out about this on our
podcast planning meeting onTuesday?
I don't know what you're talkingabout.
No.
Oh, sorry.
(13:58):
Whoops.
Edit that out.
I knew about the Kentucky Derby.
Oh, you knew about the Derby?
Yeah.
Oh, you just didn't know aboutthe drink.
Yeah, right.
We'll get there.
We'll get there.
I know about the, I know whatthe Kentucky Derby is.
Oh, okay.
I've never been, have you been?
No, I've never been to theKentucky Derby, but it's been on
my list for a long, long time.
Yeah.
it would be a really fun thingto go experience in person.
Yeah, no, I think so too.
It'd be really cool.
(14:19):
We don't live too, too far awayfrom Louisville.
Maybe next year we'll accompanya holiday party at the
racetrack.
We'll all just get dressed up inlike fluorescent suits and drink
mint juleps.
I remember.
The Churchill Downs racetrack,sort of synonymous with horse
racing history.
It's a symbol of tradition,elegance, and competition.
(14:40):
Obviously, it's become a centralpart of American culture.
Millions of of racingenthusiasts go to the Churchill
Downs every year.
Zach, I got a question for youwithout looking at the sheet.
How old do you think it is?
Well, this photo, I'll tell youwhat.
I mean, it's old, verytraditional.
I mean, there's a lot ofbleacher style stands.
I'm going to say, God, I don'twant to embarrass myself.
(15:02):
I'm going to say 1901.
You're not too far off.
Really?
1875.
I almost said 1879 to like readthe end of the cutoff but yeah
that would have been better yeahfor sure but you didn't so um
got me no yeah 1875 it wasestablished by colonel
(15:24):
merriweather lewis clark jr whata name we all the names that we
get on this potter i know it'swhat happened to cool names i
you know bring back cool namesyeah patrick and zach i mean
kind of boring kind of boringbut uh yeah so it was envisioned
as a premier horse racing venueto rival european courses
actually so the racetrack ishosted it's very first Kentucky
(15:46):
Derby and Kentucky Oaks thatsame year Kentucky Oaks yeah
that must be another race I'massuming it's a racetrack so I
assume it's something it's agrade one stakes race for three
year old thoroughbred filliesI'm guessing so it's another
class of horse but I think it'sdone at the same at the same
(16:07):
racetrack yeah so it's a kind ofrace that happens at Churchill
Downs yeah right so it It's beenheld annually without
interruption since itsinception, even through wars and
economic downturns.
I think I read somewhere that itwas halted twice, one in World
War II in 45 and one in 2020 forCOVID.
(16:28):
I believe those are the onlyyears.
That would check out.
Yeah.
Yeah.
But as far as the architectureitself for the, I mean, would
you even call this a building?
Like when I'm thinking ofbuildings.
I think it classifies as abuilding.
At least, so the part that I wastalking about are those, I was
like, that's like old Americastyle.
It's kind of like a Coney Islandkind of thing or definitely like
(16:48):
a white facade.
Right.
Classical roof.
These twin looking spires.
It looks very, very old school.
Yeah.
Well, I wasn't even was notadded until 20 years later.
That addition, the twin spires.
But now it's the signature ofthe track.
Probably the most famous part ofthe actual.
Yeah.
Structure itself.
For sure.
I feel like the cultural impactof this is probably what people
(17:10):
know most about about it.
It's hosted numerouscelebrities.
royalty, fans from all over theU.S.
and world, all walks of life,really reinforcing its place as
a social and sporting epicenter.
Who is attending the KentuckyDerby?
Who do you think is attendingthe Kentucky Derby this year?
The year 2024.
This article was from May 4,2024.
(17:32):
This is a list of celebritiesthat were going to be attending
the Kentucky Derby according tothe Louisville Courier-Journal.
Do you want me to guess somecelebrities?
Yes, give me some celebrities.
Name one, and I'll I'll be veryimpressed.
Kid Rock.
That's the first one on thelist.
How did you know that?
Really?
That's the first one on thelist.
Kid Rock, singer.
Okay, it checks out.
(17:52):
That's why I guessed it.
It checks out.
Where on earth did you pull thatfrom?
No, I promise you, I have noidea what list you're talking
about.
That's crazy.
That was straight out the dome.
My name is Kid.
What?
Is that a song?
That's Kid Rock.
Oh, I only know the Singin'Sweet Home Alabama.
Like the Sweet Home Alabama.
His ripoff of Skinner.
(18:12):
Yeah, right.
Other notable names on thisyear's Churchill Downs.
Aaron Rodgers.
Okay.
Tracy Morgan was there.
Josh Groban.
Jack Harlow.
Okay.
Boys to Men.
The whole group.
I guess everybody.
Boys Trip.
Salt-N-Pepa was there.
Wow.
Devontae Adams was there.
(18:32):
I don't even know who that is.
This is a ragtag group ofpeople.
Alan Lazard.
I don't know half these people.
Alan Lazard.
I just named a bunch of footballplayers.
Oh, okay.
That's probably why.
Smokey Robinson was there.
Tracy Morgan was there.
Okay.
DMC.
Bobby Brown.
Yeah.
Well, yeah.
Lots of famous people.
(18:53):
I guess.
Football players.
So, okay.
Fun facts for you.
Which I guess this was more of afun fact for me.
The mint juleps.
Yeah.
Which I didn't know what thatwas.
Sorry.
Well, I was just surprised.
Because I know that youappreciate a good cocktail.
I do.
I love a good cocktail.
And when you.
and you didn't know what a mintjulep was, I was just a little
surprised.
Mike, grab one after work today.
(19:16):
We'll see, I wanna give this atry.
Sounds pretty good.
More than 120,000 mint julepsare served during the Kentucky
Derby weekend alone.
So that's a lot of that onecocktail.
Yeah, and the Kentucky Derby,the mint julep, the tradition
that I knew is that every yearthey do a commemorative glass.
So you get these specializedglasses for the mint juleps that
(19:38):
have a logo on them or like somekind of design and the date and
the year.
And I've known people that havelike extensive collections of
going back.
It's like, my grandpappy went tothe Kentucky Derby and I got his
glasses.
And then my dad went, yeah, so.
That'd be a cool collection.
Yeah, yeah, yeah.
But mint julep's good.
If our producers were really,really appreciated us, they
would have brought us a coupleso we could sip them during this
(19:59):
segment.
Well, for like the knowledge oflike, we're running like a sort
of educational podcast.
I'd call it a semi-educationalshow.
Semi-educational.
How am I supposed to talk abouta mint julep without having...
texted one in my hand right now.
Sipping it into the microphone.
What about the hats?
You got hats?
Hat facts?
Yeah, let me read this hat back.
Derby hats.
(20:19):
Zach with the hat facts.
Except I'm Patrick.
Pat.
Pat.
Pat with the hat facts.
Pat with the hat facts.
The Kentucky Derby is known forits extravagant hat fashion,
which has become a celebratedtradition, adding flair and
festivity to the event.
What kind of hats are those, Iwonder?
I think that they're just likethe extravagant like...
(20:41):
that kind of like colonialheadpiece.
Like I know that the ladies willwear like the big feathered caps
and stuff.
Yeah.
Like lots of fluorescent colors.
Yeah.
I don't think my, my tan, mybeige bangles hat probably
wouldn't.
Yeah.
Wouldn't apply.
What else?
(21:01):
But it has hold some of thelargest crowds and horse racing
often exceeding 150,000attendees during the Derby.
That's not really thatsurprising.
You know, It's a destination forit, so people travel, people go.
Yeah, I'm not that surprised bythat, although it seems like
only– based on that number of150,000 attendees, only 30,000
(21:21):
people aren't getting mintjuleps.
So– That's kind of crazy.
That is kind of crazy.
This is more of a fact for notreal estate people, if you're
into horses.
Secretariat, one of the mostlegendary racehorses, won the
Kentucky Derby in 1973, settingthe record that still stands
today.
I think even people that ownreal estate can appreciate a
(21:43):
good horse.
No, it's purely one or theother.
They're mutually exclusive.
Those fan bases don't intersectat all?
Yeah, it's like a Venn diagram,except they're not touching at
all.
Okay, so the question, howmuch...
How much do you think it wouldcost to buy Churchill Downs?
We're doing the property listingaspect here.
Yeah, buying the property.
Patrick, we talked recentlyabout you acquiring property in
(22:06):
a fire zone, but now you'regoing to be acquiring Churchill
Downs.
I have to buy it, though?
You're forced to buy it.
How much does it cost?
$120 million.
I have no idea, though.
Is that too high?
It's hard, we don't have realcontext, right?
I mean, it's like 150,000attendees during the Derby.
Each one of them is probablypaying a 50, 60,$70 ticket.
(22:31):
That's a lot of money, andthat's like one year's worth of
income.
We're getting a note from theproducer.
It's$1,000 for a ticket?
No way.
All right, scratch my plans toever go to that.
Yeah, I don't think we're evergoing to make it to the holiday
party.
So the average price is in the$1,200s for a ticket.
So my guess of$150 million isprobably way off because they
(22:53):
would make their money alone inone year's worth of tickets
alone.
If you use that– that price asthe the amount per ticket and
you take 150 000 people that's187 million dollars just on that
day and we're not even talkingabout the mint juleps not even
talking about the juleps yeah soi'm gonna say i'm gonna say
(23:15):
eight billion yeah that's that'sinsane okay well more money than
it takes to buy good luck buyingthat zach yeah i know if you
were a horse at churchill downswhat would your racing name be i
love that this is a question iwanted you to read this question
so badly.
I got us out of the dock.
What would your racing name be?
I have no earthly idea becausethey're all like wacky names.
(23:40):
They're all like I don't reallyknow.
I know Seabiscuit and I guessSecretariat now.
Secretariat.
I feel like it's all it's likesunrise in the park sunrise in
the park it's coming around thecorner sunrise in the park but
it's like they're all likewackadoo like my cousins had
horses when I was a kid andtheir the horse's name was
(24:00):
painted peppy ruby that was oneof the horse names so they all
have these like long regal namesI don't know do you have a name
for yourself I don't I'm tryingto think of one right now like
I'm looking at secretariat andlike I'm trying to like Patrick
the Patrick Patriot that's kindof Patrick the Patriot Patrick
the Patriot I guess Not really ahorse name.
I think it works.
(24:20):
I guess, yeah, Patrick thePatriot.
Clomp, clomp for freedom.
Okay, so money is no object.
Yeah.
Would you go?
Yeah, I'd definitely go.
I would go.
Absolutely.
Sounds like it would be a funtime.
Yeah.
Cool.
All right.
Thank you, Patrick, for leadingus in proptology.
I really appreciate you.
(24:41):
Getting in there and talkingabout that property.
You're welcome, Zach.
Thank you.
All right, we're gonna switchgears over to listener questions
for the week.
We're diving into the mailbag.
Another round of listenerssubmitted real estate questions
to questions attherentishpod.com.
Remember, we are not certifiedexperts, so always check with a
professional before making anymajor decisions, but we're gonna
do our best to give you somesolid tips and insights.
(25:03):
Get comfy, and let's jump rightinto these new questions from
our amazing listeners across thecountry.
Uh...
I think you started off lastweek, so I'll go ahead and start
off this week.
Is that right?
Yeah.
Rondell from Newark, New Jersey,who is new to real estate and
currently facing analysisparalysis.
I'm trying to find the rightlocation for a first property,
(25:23):
and I'm open to moving anywherein the U.S.
Help! With an exclamation pointthere.
Wow, that's pretty vague.
Yeah, Rondell.
Sorry, that was pretty vague.
Yeah, okay.
But it gives us a lot of room toplay off here.
Yeah, a ton of room.
I mean, do you have any rightoff the bat?
Any where you recommend?
Well, I mean, we just talkedabout this with the whole safe
(25:45):
city list or whatever.
I am just completely biasedtowards Cincinnati, Ohio.
It's where the podcast is filmedand produced, so it's a holy
ground, basically.
But Cincinnati is my hometown.
I've been here for basically mywhole entire life.
I think that it's just such agreat part of the Midwest.
It's a city with a lot ofculture, a lot of history in it.
(26:07):
I think that the food scene isamazing.
I love all of our unique courtto all the different
neighborhoods in Cincinnati allhave a different kind of vibe so
you can go one place one nightand have an experience and go
another place and have acompletely different one so I'm
biased but like it's just a goodplace too it's affordable
Cincinnati's not like a crazyexpensive city like Chicago New
York or LA you know so I I lovethe city love-hate relationship
(26:31):
with our sports franchisescurrently but you know always
stay true in my heart yeah whatabout you what I mean obviously
I'm biased as well as I'msitting five feet away from you
in Cincinnati I love it I I'mnot originally from Cincinnati.
I'm more from the AkronCleveland area, but yeah, I'm a,
I'm a huge fan of Cincinnati,huge proponent of it.
I think it's very much anunderrated gem of a city.
I think in terms of real estate,it's like you said, it's
(26:53):
affordable, especially comparedto a lot of other major cities.
Yeah.
Shout out to Cleveland too.
I mean, you're up there withlike, speaking of Akron, I
actually kind of dig Cleveland'svarious, so it has a national
park.
Yeah.
The national park's great.
Cuyahoga Valley National Park ispretty cool.
And then at Lake Erie, I mean,come on, you got a boat, you go
out on Lake Erie.
Yeah.
You got, you got six flags upthere.
out there in the middle of thewater, Kelly's Island?
(27:15):
Wait, it's Cedar Point.
Cedar Point, yeah.
Which is like the roller coastercapital of the world, actually,
is up near Cleveland, about anhour away.
With that said, I mean, like,all the Midwestern cities I've
been to, I've really liked.
I'm a huge, just unbiased, Ithink the Midwest is great.
Like, anywhere from, I don'tknow, I've been to Chicago,
Pittsburgh, I'm not sure ifthat's the Midwest, but I really
love Pittsburgh.
(27:35):
You start getting into the Eastwhen you're in Pittsburgh.
Pittsburgh's a cool city.
Shout out to, I mean, like, ifmoney was no object, like, some
of my favorite other cities...
Denver, Colorado is awesome.
Colorado Springs, beautiful.
San Francisco, I mean, if youcan afford a property and you
wanna go ahead and go down toSan Fran, I mean, holy cow.
But Michigan's also beautifultoo.
There's a lot of beautiful stuffin the state of Michigan.
(27:57):
Grand Rapids is an awesome citywith a lot to do.
It sounds to me like Rondell hasa lot of options and has kind of
got the world, the world is hisoyster, as it were.
So I wish him a lot of luck.
I think that wherever youdecide, you just gotta ask
yourself, where do you reallywant to live?
Like you got to kind of lookinside internally and figure out
(28:17):
where you want to go and followyour dreams.
And maybe a little bit of marketresearch isn't too bad.
Yeah, that too.
All right.
I'll go ahead and kick off thesecond question here.
Okay.
Rachel from Austin, Texas, alandlord managing a handful of
rental properties in the city'sbooming market asked, how can I
ensure a smooth move in and moveout process for tenants?
(28:37):
So this one's a little bit morestraightforward.
Yeah.
Checklist.
Yep.
making sure that you havecomprehensive move-in and
move-out checklists are veryimportant.
Knowing the condition of theproperty when you first started
renting it to the person versuswhat it looks like when they are
moving out to make sure thatyou're determined.
You're like, was that scratchthere?
(28:58):
Was that giant hole in the wallthere?
That's them to rent theproperty.
Making sure that you have allthat stuff.
Clear expectations, making surethat you can prevent any kind of
dispute later on down the road.
For sure, and when it comes tosecurity deposits and holding
those, I also think it'simportant that some states have
specific legislation towards howyou need to handle security
(29:18):
deposits, just as an example.
I had some college landlords tryto take your security deposit
with anything.
There's a process for using up asecurity deposit and documenting
things.
So definitely check out yourstate, your county's
legislation, and see what youhave to do for the move-out
process.
(29:39):
And then documentation.
I am a compulsive photo takerwith like everything with like,
we talked about this with hotelsand Airbnbs, right?
It's like, it's a property thatyou actually own, like making
sure that you have documentedphotos, video walkthroughs, like
anything that might be an issue,document that issue.
Yeah.
And the last thing I thinkcommunication, you know, just be
(29:59):
like being a clear communicator,being available to your tenants,
reducing confusion.
It'll be a smoother process foreverybody, like in terms of the
cleaning expectations, thenotice periods, the how to
return the keys, something isbasically like that.
Definitely clear communicationwith your tenants is going to be
your best friend.
Cool.
Yeah, totally agree.
That wraps up this episode ofListener Questions and this
(30:20):
episode of The Rentish.
We hope these answers shed somelight on your real estate
concerns.
But if you have more questionsor stories, please reach out
questions at therentishpod.com.
Remember, staying informed iskey to being a successful
landlord.
And until next time, stay savvy.
What an outro.
Stay savvy, San Diego.
Stay savvy, San Diego.
Planet Earth.
What's going on everyone?
I'm Zach and I'm here withPatrick.
What up?
We're your hosts for theRent-ish podcast, a podcast
that's kind of about rentalproperties and hosted by two
guys that work in the realestate industry and sort of know
what they're talking about.
But mostly we don't.
(00:53):
That's right, Patrick.
Mostly we don't.
It's your catchphrase now.
I like that.
Which is why you'll have funhearing us talk to experts and
learning with us or laughing atjust about how little we know.
Today's episode, Patrick, we gota good one for you.
We're gonna talk about climatechange and all of the news
around that and how it impactsthe real estate market.
(01:13):
We're also gonna talk aboutChurchill Downs, which is a
history of iconic buildingssegment, and then we're gonna
wrap it up with listenerquestions.
I'm excited.
Yeah, it's gonna be a good one.
How you doing, buddy?
You doing okay today?
Doing good.
Coffeed up once again.
Coffeed up once again.
So you're doing your afternooncoffees now.
You're getting caffeinatedbefore the show I'm not I'm not
(01:35):
doing morning I used to have agreen tea with honey every
morning but I'm trying to cutthat I don't want to be like an
addict you know what I mean butlike on days where I need an
extra boost like before thepodcast yeah a little bit of
black coffee never hurt anyoneoh you drink it black I'm
drinking well with like likesugar and cinnamon that's not
black that's sweet oh well okayoh it's fine it's sugar and
(01:58):
cinnamon is that what you saidyeah I mean in the office we got
like a brown sugar cinnamon likething I just go like you know,
just dump it in there and thenadd some like just powdered
sugar, like white sugar,whatever you call that.
Got it.
Yeah.
When I drink coffee, it soundslike how I drank coffee when I
was a kid.
Like when I wanted it to lookcool, I would just pour sugar,
endless amounts of sugar in thecoffee thinking that I was like,
cool.
(02:19):
Cause it's like, Oh, adultsdrink coffee.
I want to drink coffee.
Oh, okay.
Wait, how are you?
Do you just drink it likestraight black or do you add?
So hot coffee these days in myolder years, I've been drinking
it with a splash of unsweetenedvanilla oat milk.
Okay.
But that's about it.
I, I typically prefer black icedcoffee, black hot coffee.
See, when I'm at a place, I'llget a vanilla oat milk latte.
(02:43):
But I'm not making that.
We're going through the work ofdoing that.
The curing can't do that.
Absolutely not.
Yeah.
All right.
Well.
I'm going to switch gears.
You want to talk about propertymanagement and real estate?
Yeah, let's do it.
That's why we're here.
Okay.
All right.
How climate change could impactyour home value.
(03:04):
Okay.
Patrick, did you read thearticle?
I forgot to read the article.
Okay.
Didn't do my homework this time,unfortunately.
0 for 2.
Love it.
With climate change becoming agrowing concern, homeowners are
starting to see its impact onproperty values as extreme
weather events and environmentalrisks reshape real estate
markets.
So there's an article.
We'll link to it in the showdoc, I'm sure, or something like
(03:25):
that.
But it's from the U.S.
News website talking about howclimate change may impact homes.
They dive into a lot of reallyinteresting stuff here.
Main key points of the article,risk zones and market trends,
homes and areas vulnerable tofloods, wildlife.
Wildlife.
Vulnerable to wildlife.
Homes and areas vulnerable tofloods.
(03:46):
Australia.
Wildfires.
I can't say this
SPEAKER_02 (03:50):
word.
Homes.
SPEAKER_00 (03:52):
Wildfire.
Is that what you're trying tosay?
Thank you, Ben.
Yeah, I'm just going to have yousay that.
Or hurricanes face higher riskimpacting their attractiveness
to buyers.
So basically saying with the waythat the world is going with
climate change, temperaturesrising, stuff like that,
different environments justbecoming different in general,
things becoming escalated,floods, wildfires, hurricanes.
(04:14):
You got to keep that stuff inmind because market values in
coastal or flood prone areas maydecrease due to anticipated sea
level rise and weatherunpredictability which will
deter long-term investments.
And this plays into the stuffwith insurance and
affordability, right?
So high-risk zones often faceescalating insurance premiums or
(04:35):
limited insurance availability,which directly affects mortgage
accessibility and affordability.
So if you live in one of thesezones, you might have problems
getting insurance.
So my dad lives in SouthernCalifornia, and he'll FaceTime
me every now and then.
As he's on a walk in hisneighborhood, he'll flip the
camera and be like, look, andit's just like a fire on a
mountain in the background withsmoke.
(04:55):
And he's saying insurance, it'stough to get insurance out there
now.
Sure, I bet.
Yeah, buyers may hesitate toinvest in properties too with
those high insurance costs,which would reduce the market
demand and lower value generallyin those regions.
Now, shockingly, I don't thinkCalifornia property values are
going to have any issue withinvestment.
(05:16):
That seems to be one of thosestates that's just impervious to
this kind of stuff.
But you never know.
The article seems to think thatthis could shift it.
I mean, Long term, it certainlycould.
Yeah, you never know.
And then demand shifts.
So there's a notable trend ofmigration towards, quote,
climate safe areas.
So shout out to the Midwest.
Yes.
Or the Northeast US, whereextreme weather is less
(05:38):
frequent.
I saw this list.
I think it was compiled byRealtor.com.
I got it here.
Top 10 cities with the lowestrisk of climate disasters,
including hurricane, fire, andflood.
Ohio, our home state, has six inthe top 10.
The number one is actually myhometown, Alabama.
Akron.
You did it, Akron.
Yeah, I know.
We got number one in somethingbesides rubber.
(06:01):
Rubber?
Yeah.
That's Akron's?
Akron Rubber?
Rubber capital of the world.
Of the world.
Goodyear.
Yeah, hey, that's right.
Goodyear is headquartered there.
Firestone started there.
I don't think I knew that aboutAkron.
Yeah, the Akron rubber ducks.
Yeah, we're known for that,LeBron.
And now, apparently, being thelowest
SPEAKER_02 (06:23):
risk...
Stuck
SPEAKER_00 (06:24):
in LeBron.
LeBron.
LeBron's our guy.
He's like our hero.
Just a kid from Akron.
Yeah, just a kid from Akron.
Oh, who else?
The Black Keys.
They're from Akron.
Oh, yeah.
They are from Akron.
Keep going.
Yeah, do it.
I'm a lonely boy.
I've seen them live.
They're great.
(06:45):
Oh, you have?
Oh, yeah.
A couple times.
I've not.
Yeah, Cincinnati's number fiveon the list, by the way.
So anyways, we're in a greatstate.
You know, move to Ohio.
Yeah, I mean, seriously, it'slike we talk about this all the
time.
Like me and my friend, I havefriends that live in Orlando
recently impacted by HurricaneEileen or Irene.
Was it Eileen or Irene?
I don't remember what it was.
(07:06):
Helene.
That's what it was.
They were impacted by thehurricanes down there.
And we were talking about likehe used to live in Cincinnati
and like kind of missed the factthat he had stability with like
weather conditions when he livedin Cincy.
I mean, we get freezing coldweather.
We do get snow.
We get ice.
We get lots of rain.
But it's like we very rarely Wesee tornadoes.
We definitely don't get residualhurricane impact.
(07:27):
Wildfires is not a thing in theMidwest.
It's a pretty stable four-seasonsort of situation.
Yeah.
Last thing on the list here,just to note the investment
long-term value.
These high-risk areas may facedeclining investor interest due
to the unpredictability ofclimate impacts on property
values.
And then conversely, areas withlow environmental risk tend to
attract more consistentinvestment, supporting steady or
(07:48):
increased home values over time.
Yeah.
I mean, it makes sense.
Yep.
Ready for some trivia facts?
Let's do it.
Okay.
Waterfront property risks.
About$34 billion in real estatealong the U.S.
coast could be underwater by2050 due to rising sea levels.
This comes from EPA.gov, so youknow it's legit.
I had no idea it was that much.
(08:10):
One of my friends, we were on abeach somewhere, and he's big
into finance and investing andstuff.
He's like, these idiots buyingthese mansions right by the
ocean.
I don't know.
Hey, if you're in it for theshort-term gain, I guess.
But yeah, if you're maybeplanning on owning that property
until 2050, you might have aproblem.
Yeah, I don't know.
It seems like it could be risky,yeah.
(08:30):
$34 billion in real estate.
That is an insane amount.
It's an unfathomable number.
Heat waves affect rent prices.
In hotter cities, demand forair-conditioned units can push
rents higher during extreme heatperiods.
Yeah, I mean, it makes sense,right?
When you have hot summers, thesummers keep getting hotter.
Those air-conditioner units arebeing pushed to the core.
(08:50):
So it's like...
By a thread as it is.
Do you have, is your buildinglike central air or do you have
like window units?
Cause you live in over the, ifpeople out there don't know, you
live in over the Rhine, which isa historically old part of
Cincinnati, like really olderbuildings.
So my building was like, Ithink, I think it was a police
station back in like 1880 orsomething.
(09:11):
So it's an old building, butyeah, it's completely renovated.
I have central air, like artit's on the roof, but like I
hear it when it's going, youknow, I hear it, you know, so
we'll see how much longer thatthing's got.
Yeah, I've lived in olderbuildings in Cincinnati that
didn't have central air.
And in the summers, it was likeunreal.
And it's only getting worse.
But it's like my air conditionerunits, like window units in
(09:33):
every room.
Electricity bill would be like$300 a month.
My last apartment was a windowunit.
Yeah, oh my goodness.
Terrible.
The Amazon's role.
The Amazon rainforest producesabout 20% of the world's oxygen,
but it's also at risk of turninginto a savanna due to
deforestation and warming.
Wow.
You don't often hear the wordsavanna.
when it's not a human being.
(09:56):
I had no idea that much of theworld's oxygen.
I mean, beyond just thedeforestation aspect being
really sad, that's just a lot ofoxygen that we're missing out
on.
Yeah, we're going to have to getused to thinner air.
Get that canned oxygen.
Denver all the time.
The Lorax, have you seen thatmovie?
(10:18):
Like the terrible Illuminationmovie?
No, I've seen the originalLorax, the animated one.
Like the 2D animated one.
Oh, okay.
There's one like a 3D one fromlike 2010 or something like that
where like the bad guy likesells canned air.
That's what made me think ofthis right now.
Okay, got it.
So like that's going to be us.
That might be us.
That might be us.
So what kind of weather eventsdo you think are most worrying
(10:42):
for home buyers today?
Do you have an answer?
It's a tough one.
I have no idea, truly.
I mean, it seems from myperspective but it seems like
the fire situation out West isgetting like consistently worse.
But yeah, no, I, I, I agree withthat fires.
I mean like the crazy thing wasduring the hurricane season this
year, there were cities likeAugusta, Georgia, Asheville,
(11:02):
North Carolina.
They got hit with residualflooding and bad weather from a
hurricane that was all the waydown by the Gulf.
Right.
So it's like, if that situationcontinues to worsen, that might
be a thing.
It's very rare that, like,middle of the state southern
towns and cities and stateswould have to worry about
hurricanes.
Right.
But the...
The more that climate changeimpacts that stuff, the worse it
(11:24):
could get.
So I think that that'sconcerning as well.
Yeah, for sure.
Should people buy homes inplaces with climate risks if
they're more affordable?
Patrick, would you say you hadthe money to buy a place in a
beautiful house, California, 12bedrooms, 12 baths?
Beautiful backyard.
If I had that money, I'm not–no, first of all, if I had that
(11:44):
money, I'm not investing inCalifornia.
That's what you're asking.
Oh, sure.
Okay.
Well, hypothetically, you hadto.
And it's right next to like abig open park filled with a
bunch of pine trees.
Are you doing it?
If I have to, I have a choice.
What?
No.
If I had the money, I wouldpersonally– because I would want
to do more of a long-terminvestment.
Now, like in terms of ashort-term investment, like flip
(12:06):
the house, like make a quickprofit.
Sure.
It might not be the worst ideain the world.
But if I'm investing money in along-term property, I want to
get the appreciation of theproperty.
I want to get consistent rentalincome.
I'm choosing somewherepersonally in Ohio or in the
Midwest where you don't have toworry as much about these
unknown variables, right?
(12:27):
Yeah.
That's smart.
I definitely would not– takethat risk.
Like if it was an either orsituation.
(12:55):
But if you had to invest.
But if I had to invest, I would,yeah.
All right, so to wrap it up,climate change is altering the
real estate landscape, makingsome properties more vulnerable,
others more desirable.
As environmental risks increase,understanding these impacts is
essential for anyone consideringa home purchase or investment.
(13:15):
So much like we always say,Speak to a professional.
We've got some facts here, Zach,but speak with someone maybe
with more facts.
With more facts, better facts.
Okay, cool.
Well, I think next up we'regoing to talk proptology with
Patrick.
You're back in the saddlehosting the seat.
Speaking of saddles.
That was too perfect.
(13:38):
Churchill Downs, the iconicracetrack in Louisville,
Kentucky.
As we know, the, what's thatthing called?
The Kentucky Derby.
Oh my goodness.
What's that thing called?
That was the main part.
Can I admit to the audience thatyou found out about this on our
podcast planning meeting onTuesday?
I don't know what you're talkingabout.
No.
Oh, sorry.
(13:58):
Whoops.
Edit that out.
I knew about the Kentucky Derby.
Oh, you knew about the Derby?
Yeah.
Oh, you just didn't know aboutthe drink.
Yeah, right.
We'll get there.
We'll get there.
I know about the, I know whatthe Kentucky Derby is.
Oh, okay.
I've never been, have you been?
No, I've never been to theKentucky Derby, but it's been on
my list for a long, long time.
Yeah.
it would be a really fun thingto go experience in person.
Yeah, no, I think so too.
It'd be really cool.
(14:19):
We don't live too, too far awayfrom Louisville.
Maybe next year we'll accompanya holiday party at the
racetrack.
We'll all just get dressed up inlike fluorescent suits and drink
mint juleps.
I remember.
The Churchill Downs racetrack,sort of synonymous with horse
racing history.
It's a symbol of tradition,elegance, and competition.
(14:40):
Obviously, it's become a centralpart of American culture.
Millions of of racingenthusiasts go to the Churchill
Downs every year.
Zach, I got a question for youwithout looking at the sheet.
How old do you think it is?
Well, this photo, I'll tell youwhat.
I mean, it's old, verytraditional.
I mean, there's a lot ofbleacher style stands.
I'm going to say, God, I don'twant to embarrass myself.
(15:02):
I'm going to say 1901.
You're not too far off.
Really?
1875.
I almost said 1879 to like readthe end of the cutoff but yeah
that would have been better yeahfor sure but you didn't so um
got me no yeah 1875 it wasestablished by colonel
(15:24):
merriweather lewis clark jr whata name we all the names that we
get on this potter i know it'swhat happened to cool names i
you know bring back cool namesyeah patrick and zach i mean
kind of boring kind of boringbut uh yeah so it was envisioned
as a premier horse racing venueto rival european courses
actually so the racetrack ishosted it's very first Kentucky
(15:46):
Derby and Kentucky Oaks thatsame year Kentucky Oaks yeah
that must be another race I'massuming it's a racetrack so I
assume it's something it's agrade one stakes race for three
year old thoroughbred filliesI'm guessing so it's another
class of horse but I think it'sdone at the same at the same
(16:07):
racetrack yeah so it's a kind ofrace that happens at Churchill
Downs yeah right so it It's beenheld annually without
interruption since itsinception, even through wars and
economic downturns.
I think I read somewhere that itwas halted twice, one in World
War II in 45 and one in 2020 forCOVID.
(16:28):
I believe those are the onlyyears.
That would check out.
Yeah.
Yeah.
But as far as the architectureitself for the, I mean, would
you even call this a building?
Like when I'm thinking ofbuildings.
I think it classifies as abuilding.
At least, so the part that I wastalking about are those, I was
like, that's like old Americastyle.
It's kind of like a Coney Islandkind of thing or definitely like
(16:48):
a white facade.
Right.
Classical roof.
These twin looking spires.
It looks very, very old school.
Yeah.
Well, I wasn't even was notadded until 20 years later.
That addition, the twin spires.
But now it's the signature ofthe track.
Probably the most famous part ofthe actual.
Yeah.
Structure itself.
For sure.
I feel like the cultural impactof this is probably what people
(17:10):
know most about about it.
It's hosted numerouscelebrities.
royalty, fans from all over theU.S.
and world, all walks of life,really reinforcing its place as
a social and sporting epicenter.
Who is attending the KentuckyDerby?
Who do you think is attendingthe Kentucky Derby this year?
The year 2024.
This article was from May 4,2024.
(17:32):
This is a list of celebritiesthat were going to be attending
the Kentucky Derby according tothe Louisville Courier-Journal.
Do you want me to guess somecelebrities?
Yes, give me some celebrities.
Name one, and I'll I'll be veryimpressed.
Kid Rock.
That's the first one on thelist.
How did you know that?
Really?
That's the first one on thelist.
Kid Rock, singer.
Okay, it checks out.
(17:52):
That's why I guessed it.
It checks out.
Where on earth did you pull thatfrom?
No, I promise you, I have noidea what list you're talking
about.
That's crazy.
That was straight out the dome.
My name is Kid.
What?
Is that a song?
That's Kid Rock.
Oh, I only know the Singin'Sweet Home Alabama.
Like the Sweet Home Alabama.
His ripoff of Skinner.
(18:12):
Yeah, right.
Other notable names on thisyear's Churchill Downs.
Aaron Rodgers.
Okay.
Tracy Morgan was there.
Josh Groban.
Jack Harlow.
Okay.
Boys to Men.
The whole group.
I guess everybody.
Boys Trip.
Salt-N-Pepa was there.
Wow.
Devontae Adams was there.
(18:32):
I don't even know who that is.
This is a ragtag group ofpeople.
Alan Lazard.
I don't know half these people.
Alan Lazard.
I just named a bunch of footballplayers.
Oh, okay.
That's probably why.
Smokey Robinson was there.
Tracy Morgan was there.
Okay.
DMC.
Bobby Brown.
Yeah.
Well, yeah.
Lots of famous people.
(18:53):
I guess.
Football players.
So, okay.
Fun facts for you.
Which I guess this was more of afun fact for me.
The mint juleps.
Yeah.
Which I didn't know what thatwas.
Sorry.
Well, I was just surprised.
Because I know that youappreciate a good cocktail.
I do.
I love a good cocktail.
And when you.
and you didn't know what a mintjulep was, I was just a little
surprised.
Mike, grab one after work today.
(19:16):
We'll see, I wanna give this atry.
Sounds pretty good.
More than 120,000 mint julepsare served during the Kentucky
Derby weekend alone.
So that's a lot of that onecocktail.
Yeah, and the Kentucky Derby,the mint julep, the tradition
that I knew is that every yearthey do a commemorative glass.
So you get these specializedglasses for the mint juleps that
(19:38):
have a logo on them or like somekind of design and the date and
the year.
And I've known people that havelike extensive collections of
going back.
It's like, my grandpappy went tothe Kentucky Derby and I got his
glasses.
And then my dad went, yeah, so.
That'd be a cool collection.
Yeah, yeah, yeah.
But mint julep's good.
If our producers were really,really appreciated us, they
would have brought us a coupleso we could sip them during this
(19:59):
segment.
Well, for like the knowledge oflike, we're running like a sort
of educational podcast.
I'd call it a semi-educationalshow.
Semi-educational.
How am I supposed to talk abouta mint julep without having...
texted one in my hand right now.
Sipping it into the microphone.
What about the hats?
You got hats?
Hat facts?
Yeah, let me read this hat back.
Derby hats.
(20:19):
Zach with the hat facts.
Except I'm Patrick.
Pat.
Pat.
Pat with the hat facts.
Pat with the hat facts.
The Kentucky Derby is known forits extravagant hat fashion,
which has become a celebratedtradition, adding flair and
festivity to the event.
What kind of hats are those, Iwonder?
I think that they're just likethe extravagant like...
(20:41):
that kind of like colonialheadpiece.
Like I know that the ladies willwear like the big feathered caps
and stuff.
Yeah.
Like lots of fluorescent colors.
Yeah.
I don't think my, my tan, mybeige bangles hat probably
wouldn't.
Yeah.
Wouldn't apply.
What else?
(21:01):
But it has hold some of thelargest crowds and horse racing
often exceeding 150,000attendees during the Derby.
That's not really thatsurprising.
You know, It's a destination forit, so people travel, people go.
Yeah, I'm not that surprised bythat, although it seems like
only– based on that number of150,000 attendees, only 30,000
(21:21):
people aren't getting mintjuleps.
So– That's kind of crazy.
That is kind of crazy.
This is more of a fact for notreal estate people, if you're
into horses.
Secretariat, one of the mostlegendary racehorses, won the
Kentucky Derby in 1973, settingthe record that still stands
today.
I think even people that ownreal estate can appreciate a
(21:43):
good horse.
No, it's purely one or theother.
They're mutually exclusive.
Those fan bases don't intersectat all?
Yeah, it's like a Venn diagram,except they're not touching at
all.
Okay, so the question, howmuch...
How much do you think it wouldcost to buy Churchill Downs?
We're doing the property listingaspect here.
Yeah, buying the property.
Patrick, we talked recentlyabout you acquiring property in
(22:06):
a fire zone, but now you'regoing to be acquiring Churchill
Downs.
I have to buy it, though?
You're forced to buy it.
How much does it cost?
$120 million.
I have no idea, though.
Is that too high?
It's hard, we don't have realcontext, right?
I mean, it's like 150,000attendees during the Derby.
Each one of them is probablypaying a 50, 60,$70 ticket.
(22:31):
That's a lot of money, andthat's like one year's worth of
income.
We're getting a note from theproducer.
It's$1,000 for a ticket?
No way.
All right, scratch my plans toever go to that.
Yeah, I don't think we're evergoing to make it to the holiday
party.
So the average price is in the$1,200s for a ticket.
So my guess of$150 million isprobably way off because they
(22:53):
would make their money alone inone year's worth of tickets
alone.
If you use that– that price asthe the amount per ticket and
you take 150 000 people that's187 million dollars just on that
day and we're not even talkingabout the mint juleps not even
talking about the juleps yeah soi'm gonna say i'm gonna say
(23:15):
eight billion yeah that's that'sinsane okay well more money than
it takes to buy good luck buyingthat zach yeah i know if you
were a horse at churchill downswhat would your racing name be i
love that this is a question iwanted you to read this question
so badly.
I got us out of the dock.
What would your racing name be?
I have no earthly idea becausethey're all like wacky names.
(23:40):
They're all like I don't reallyknow.
I know Seabiscuit and I guessSecretariat now.
Secretariat.
I feel like it's all it's likesunrise in the park sunrise in
the park it's coming around thecorner sunrise in the park but
it's like they're all likewackadoo like my cousins had
horses when I was a kid andtheir the horse's name was
(24:00):
painted peppy ruby that was oneof the horse names so they all
have these like long regal namesI don't know do you have a name
for yourself I don't I'm tryingto think of one right now like
I'm looking at secretariat andlike I'm trying to like Patrick
the Patrick Patriot that's kindof Patrick the Patriot Patrick
the Patriot I guess Not really ahorse name.
I think it works.
(24:20):
I guess, yeah, Patrick thePatriot.
Clomp, clomp for freedom.
Okay, so money is no object.
Yeah.
Would you go?
Yeah, I'd definitely go.
I would go.
Absolutely.
Sounds like it would be a funtime.
Yeah.
Cool.
All right.
Thank you, Patrick, for leadingus in proptology.
I really appreciate you.
(24:41):
Getting in there and talkingabout that property.
You're welcome, Zach.
Thank you.
All right, we're gonna switchgears over to listener questions
for the week.
We're diving into the mailbag.
Another round of listenerssubmitted real estate questions
to questions attherentishpod.com.
Remember, we are not certifiedexperts, so always check with a
professional before making anymajor decisions, but we're gonna
do our best to give you somesolid tips and insights.
(25:03):
Get comfy, and let's jump rightinto these new questions from
our amazing listeners across thecountry.
Uh...
I think you started off lastweek, so I'll go ahead and start
off this week.
Is that right?
Yeah.
Rondell from Newark, New Jersey,who is new to real estate and
currently facing analysisparalysis.
I'm trying to find the rightlocation for a first property,
(25:23):
and I'm open to moving anywherein the U.S.
Help! With an exclamation pointthere.
Wow, that's pretty vague.
Yeah, Rondell.
Sorry, that was pretty vague.
Yeah, okay.
But it gives us a lot of room toplay off here.
Yeah, a ton of room.
I mean, do you have any rightoff the bat?
Any where you recommend?
Well, I mean, we just talkedabout this with the whole safe
(25:45):
city list or whatever.
I am just completely biasedtowards Cincinnati, Ohio.
It's where the podcast is filmedand produced, so it's a holy
ground, basically.
But Cincinnati is my hometown.
I've been here for basically mywhole entire life.
I think that it's just such agreat part of the Midwest.
It's a city with a lot ofculture, a lot of history in it.
(26:07):
I think that the food scene isamazing.
I love all of our unique courtto all the different
neighborhoods in Cincinnati allhave a different kind of vibe so
you can go one place one nightand have an experience and go
another place and have acompletely different one so I'm
biased but like it's just a goodplace too it's affordable
Cincinnati's not like a crazyexpensive city like Chicago New
York or LA you know so I I lovethe city love-hate relationship
(26:31):
with our sports franchisescurrently but you know always
stay true in my heart yeah whatabout you what I mean obviously
I'm biased as well as I'msitting five feet away from you
in Cincinnati I love it I I'mnot originally from Cincinnati.
I'm more from the AkronCleveland area, but yeah, I'm a,
I'm a huge fan of Cincinnati,huge proponent of it.
I think it's very much anunderrated gem of a city.
I think in terms of real estate,it's like you said, it's
(26:53):
affordable, especially comparedto a lot of other major cities.
Yeah.
Shout out to Cleveland too.
I mean, you're up there withlike, speaking of Akron, I
actually kind of dig Cleveland'svarious, so it has a national
park.
Yeah.
The national park's great.
Cuyahoga Valley National Park ispretty cool.
And then at Lake Erie, I mean,come on, you got a boat, you go
out on Lake Erie.
Yeah.
You got, you got six flags upthere.
out there in the middle of thewater, Kelly's Island?
(27:15):
Wait, it's Cedar Point.
Cedar Point, yeah.
Which is like the roller coastercapital of the world, actually,
is up near Cleveland, about anhour away.
With that said, I mean, like,all the Midwestern cities I've
been to, I've really liked.
I'm a huge, just unbiased, Ithink the Midwest is great.
Like, anywhere from, I don'tknow, I've been to Chicago,
Pittsburgh, I'm not sure ifthat's the Midwest, but I really
love Pittsburgh.
(27:35):
You start getting into the Eastwhen you're in Pittsburgh.
Pittsburgh's a cool city.
Shout out to, I mean, like, ifmoney was no object, like, some
of my favorite other cities...
Denver, Colorado is awesome.
Colorado Springs, beautiful.
San Francisco, I mean, if youcan afford a property and you
wanna go ahead and go down toSan Fran, I mean, holy cow.
But Michigan's also beautifultoo.
There's a lot of beautiful stuffin the state of Michigan.
(27:57):
Grand Rapids is an awesome citywith a lot to do.
It sounds to me like Rondell hasa lot of options and has kind of
got the world, the world is hisoyster, as it were.
So I wish him a lot of luck.
I think that wherever youdecide, you just gotta ask
yourself, where do you reallywant to live?
Like you got to kind of lookinside internally and figure out
(28:17):
where you want to go and followyour dreams.
And maybe a little bit of marketresearch isn't too bad.
Yeah, that too.
All right.
I'll go ahead and kick off thesecond question here.
Okay.
Rachel from Austin, Texas, alandlord managing a handful of
rental properties in the city'sbooming market asked, how can I
ensure a smooth move in and moveout process for tenants?
(28:37):
So this one's a little bit morestraightforward.
Yeah.
Checklist.
Yep.
making sure that you havecomprehensive move-in and
move-out checklists are veryimportant.
Knowing the condition of theproperty when you first started
renting it to the person versuswhat it looks like when they are
moving out to make sure thatyou're determined.
You're like, was that scratchthere?
(28:58):
Was that giant hole in the wallthere?
That's them to rent theproperty.
Making sure that you have allthat stuff.
Clear expectations, making surethat you can prevent any kind of
dispute later on down the road.
For sure, and when it comes tosecurity deposits and holding
those, I also think it'simportant that some states have
specific legislation towards howyou need to handle security
(29:18):
deposits, just as an example.
I had some college landlords tryto take your security deposit
with anything.
There's a process for using up asecurity deposit and documenting
things.
So definitely check out yourstate, your county's
legislation, and see what youhave to do for the move-out
process.
(29:39):
And then documentation.
I am a compulsive photo takerwith like everything with like,
we talked about this with hotelsand Airbnbs, right?
It's like, it's a property thatyou actually own, like making
sure that you have documentedphotos, video walkthroughs, like
anything that might be an issue,document that issue.
Yeah.
And the last thing I thinkcommunication, you know, just be
(29:59):
like being a clear communicator,being available to your tenants,
reducing confusion.
It'll be a smoother process foreverybody, like in terms of the
cleaning expectations, thenotice periods, the how to
return the keys, something isbasically like that.
Definitely clear communicationwith your tenants is going to be
your best friend.
Cool.
Yeah, totally agree.
That wraps up this episode ofListener Questions and this
(30:20):
episode of The Rentish.
We hope these answers shed somelight on your real estate
concerns.
But if you have more questionsor stories, please reach out
questions at therentishpod.com.
Remember, staying informed iskey to being a successful
landlord.
And until next time, stay savvy.
What an outro.
Stay savvy, San Diego.
Stay savvy, San Diego.
Planet Earth.
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