All Forum Posts by: Alecia Loveless

@Santhi Mani I probably shouldn’t make assumptions but I’m assuming it’s on town water and sewer. If it’s not you’ll want to get a well inspection and a septic inspection.

Also this should be fairly standard but make sure the electrical is all grounded, I just spent about $5,000 adding outlets and grounding the electrical in a 1950s house to bring it up to today’s code which also meant outlets every six feet instead of one or two in a room. It was grandfathered but I’m flipping it as a high end property and want the highest return.

@Joshua Faltysek Start networking now. Talk to anyone and everyone about your plans because you never know when someone may offer you a deal or tell you about a deal. Begin setting up your network. Even if you don’t buy the first property this year maybe spend the $250 to get your taxes done professionally and begin making a connection with an accountant. Try to get referrals for a handyman or general contractor. Join your local real estate association or state association if you can. All of these things will help you learn more and be ready when the time comes.

@Daniel Sabato I am looking at a totally gutted house but it also needs a foundation. My GCs estimate for it to completion, it is down to the studs, and needs everything from wiring to windows to insulation to a new roof is $120,000 plus $50,000 for the foundation. The cost for the property is minimal.

It will be a two family up/down 2br/1ba on each floor.

Knowing little about construction costs other than what the GC and I have done together on some other properties over the last two years I also came in at that same price using the BP calculator with my own estimate of costs so I figure we are pretty close.

The whole house is probably 1900sq ft of livable space plus the new basement which will likely just be storage for the first floor.

If I could find a “brand new” 2 family in my area for the price to renovate this one completely I would simply buy it, but most of the existing multis need a lot of work which is why we’re going to undertake this project. Otherwise I wouldn’t. Once it’s done it shouldn’t have problems for years to come.

@Nathaniel Walker After having owned 2 bed and breakfasts they can be just as lucrative as STR if you have attractions or good enough marketing to draw in your customer base.

The main difference between the two is the amount of time that you or someone will have to spend attending to the B&B vs. the STR.

With the B&B you have to have contact with your guests when you check them in, socialize with them, help them with their plans such as dinner reservations and inform them of things to do in the area, maybe have wine service depending on your area and level of hospitality, then in the morning there is breakfast either a continental or a full cooked sit down meal.

With a STR you can streamline your operation and have everything run fairly mechanically. You can have digital locks to allow access to the units, books with directions to restaurants and attractions, full or partial kitchens so guests can prepare their own food, emergency contact numbers that can be someone else's so you can be completely hands off if you wish.

Most states do require some sort of a food license with an annual inspection of your kitchen facilities for a bed and breakfast. Whether an inspection is required for STR will vary by jurisdiction.

You can make a profit at both. Best of luck!!

@Andrew Bravo Hi. I’ve paid more than the going value a few times but the numbers have always worked out. Also other things have always factored in such as the location of the property, the desirability of the neighborhood or town, the proximity to shopping, schools, or other attractions. I also try to factor in the sustainability of the value of the property and it’s rents should the overall market values of the area drop.

@Robert Williams I owned two separate bed and breakfasts and lived the good life. Two full months of vacation, great hours, awesome lifestyle, you name it!

I fell into the rat race when our health insurance became too expensive.

Now, 10 years later I’m on BiggerPockets and still in the rat race desperately trying to generate enough monthly income to get both myself and my partner to financial freedom!

I’ve got a 5 year plan and am working hard toward it. I’ve even picked up a second job part time to try to add some extra cash to help finance extra deals! Currently I average 95-100 hours biweekly at my full time job and some periods another 45 at my side gig.

My advice is to sit down and think about your goals for real estate. Pick a starting point. Single family house, duplex with a house hack where you live in one side, 4-plex where you live in 1 unit and rent 3, once you figure out what you want then work on your plan for how to get there.

BiggerPockets has a great selection of books in their bookstore on how to get started in real estate from rentals to flipping to out of state investing to using other peoples money there’s tons of great topics to get you started.

Thanks for the info @Nathan G. I appreciate it. I looked online last night and found two books on the subject, unfortunately when I downloaded the second one it was scanned in sideways and I could not read it. But I will keep on researching my market and see if I can learn some more. 

@Jeff Modjeska I’m contemplating a major rehab right now. The building itself is down to the studs and it needs to have a new foundation poured.

However when it is done it can either be refinanced and cash flow a little to buy something else or I will have a cash flowing cow.

We’ve factored in the costs and have the capital to put into it without having to finance it.

I’ve got some other properties that need to season a bit before I can get another mortgage from a bank. I could use creative financing if something great comes along in the meantime but I’m happy with this rehab for now even with the costs.

While I know its not housing, there's a shortage of self storage in my area. I've found a potentially great piece of land and was wondering if anyone is doing this, and if so, pointers and companies to buy buildings from. Thanks!

@Austin Shulman While it’s not the best paying job or the most glamorous I work as a Direct Support Professional or a Residential Counselor on the overnight shift at a group home facility. I know it’s not the best job for connecting with other people but it provides a stable salary that with time will allow you to get mortgages and most full time positions come with full benefits including insurances and some type of retirement account with many employers offering a matching benefit.

I work 4 days a week and on one of those days I do a double shift. There’s almost always overtime at time and a half.

Then I can stay up when I get home and scour the MLS or tend to my real estate or go to sleep immediately and have the second part of my day for my real estate or other things. Plus the three days off are great for scheduling inspections, showings, walk throughs, bank appointments, etc. On your days off you could be a part time agent or focus on driving for dollars or just about anything.

The only catch is that you have to be able to stay awake overnight unless you find a sleeping position which also exists.

Just a thought.