Real Estate Agent · New York, NY · Member since 2018 · 45 posts · 13 votes
I wanted to pick the intelligent minds of the BP community as I feel like I'm stuck.
We have been running a successful STR for almost a year now and I'm having trouble pulling the trigger on another property. I was hoping to get some advice on this property I'm evaluating.
Price: $540,000
Type: Duplex 2/1 and 1/1 with ability to STR both sides, anticipated average $280-300 at a 40% (low range) occupancy would result in 15-20% CoC
My issue is the structuring of the offer/deal.
We have around $80k in cash with more in stocks (would prefer not to pull any out) so any 20% down would deplete reserves. With down payment and start up costs we'd be looking at $150-160k cash initially.
Comps in the area have sold avg $249/sq ft while this property is going for $288/sq ft. I don't know if any seller would be comfortable decreasing the price $60k ($466k).
Any advice or creative ideas on how I can move forward confidently with this deal? Do I ask the seller to buy down the rate? Do I pull money out of stocks? Thoughts on buying with an LLC vs not for lower rates? I'm in a sophomore slump of analysis...
So here is my thought, and you might not like it. You have clearly though this out thoroughly, which is great! You have clearly had success wiht another STR- and congrats on that! Yet, you are worried about/not comfortable buying again. My advice would be don't buy it. SInce you're not a new investor, you have had success in your first STR, you have thought this new investment out so well, and you still aren't comfortable pulling the trigger, then your gut is telling you no. Trust your gut. There will be other properties and most likely if you buy this one, you will be nervous- even if things are going well and especially if they aren't. Sorry about being the negative one here. I'm sure this is not what you were expecting to hear. But I've bought and sold or helped people buy and sell a lot of properties over the years and when it comes to not being afraid to invest (and you aren't) yet not feeling comfortable/ready for the next one, I'd trust my gut all day long. Whatever you decide, I wish you the best of luck!