Los Angeles, CA · Member since 2018 · 23 posts · 14 votes
Hi Everyone,
I am new to BP and excited to make some connections. I recently formed my own company to assist commercial Short Term Rental (Airbnb) operators find more units and scale. I have personally negotiated and signed leases for 50+ STR units in the last 3 years and I hope to share this experience with interested parties.
In addition to STR, I also have a passion for modular and prefab construction, which I believe is the future of RE development. I have around 10 years experience in construction and property management and recently consulted on a site-build project that I redirected to modular!
I look forward to meeting people and connecting, thanks!
Canton, OH · Member since 2018 · 118 posts · 63 votes
8y
@Nghi Le there is value add. The house is for sale for 68k, ARV is 120k, it needs about 10k in rehab, (estimating high) there is plenty of equity, but they are offering so low to get a cash buyer.
Rental Property Investor · Maryville, TN · Member since 2009 · 529 posts · 414 votes
8y
@James Clifford What market are you in? How are the mod prices per sq ft compared to site built? I have found prices are the same as site built, or maybe a little higher. Still waiting for an appraiser to chime in on long term values with the modular, and if they are looked at any differently (value wise) down the road.
Los Angeles, CA · Member since 2018 · 23 posts · 14 votes
8y
@Will G. thanks for your reply. I have specific knowledge on modular in east Texas, and in that market, your vertical construction costs per sq ft can be about the same as site-built depending on FF&E.
Since a building built modularly has the same permitting process and certificate of occupancy requirements as a site built project I do not imagine the appraisal value will be different. Modular has struggled to get away from the "manufactured home" label here in the USA but the industry is producing a product that is comparable or better in quality than site-built. If you would like to discuss further I am more than happy to share my knowledge with you. thanks again
Los Angeles, CA · Member since 2018 · 23 posts · 14 votes
8y
Hey @Account Closed , STR is short for Short Term Rental. This is the term for a rental property that is being leased out by the day or week rather than a traditional long-term lease. With the explosion of Airbnb over the past few years, STR is becoming more popular for buy/hold investors as a way to generate revenue. Hope this sheds some light on it!
Canton, OH · Member since 2018 · 118 posts · 63 votes
8y
Yes it does, I figured it out after I asked but could not figure out how to delete the post. I am trying right now to purchase a house to do 9 month college student rent by room, 3 month Airbrb. House is 5 minutes from the Football Hall of Fame and five minutes from a major private university. Sits right by an expressway, perfect location. Has small yard so easy maintenance. It is a Tudor so it is beautiful and unique. Problem is, I am buying another rental right now and have my cash tied up in 15% down on that one and can't risk losing the first one by trying to finance at same time and hard money lenders want 15 to 20% down. I am extremely frustrated because this place would be perfect for it.
Los Angeles, CA · Member since 2018 · 23 posts · 14 votes
8y
Sounds like the property is in a great location and has the unique look to do well with Short-Term guests. I understand the frustration of not being able to pull the trigger! Hopefully the first rental property will be a home run
@Will G. thanks for your reply. I have specific knowledge on modular in east Texas, and in that market, your vertical construction costs per sq ft can be about the same as site-built depending on FF&E.
Since a building built modularly has the same permitting process and certificate of occupancy requirements as a site built project I do not imagine the appraisal value will be different. Modular has struggled to get away from the "manufactured home" label here in the USA but the industry is producing a product that is comparable or better in quality than site-built. If you would like to discuss further I am more than happy to share my knowledge with you. thanks again
Investor / Lender · Seattle, WA · Member since 2014 · 1k+ posts · 730 votes
8y
@Account Closed
Hard money can be as low as 5-10% down. However, that's only if there's a value-add component, allowing you to buy with plenty of equity. Otherwise, you're limited to 70-75% of ARV (which essentially is LTV if it's already in good condition).
Canton, OH · Member since 2018 · 118 posts · 63 votes
8y
@Nghi Le there is value add. The house is for sale for 68k, ARV is 120k, it needs about 10k in rehab, (estimating high) there is plenty of equity, but they are offering so low to get a cash buyer.