All Forum Posts by: Andrew Myers

@Keith C. We did pretty much the same thing with our split level house.  We spent about 8k to separate the upstairs and downstairs, put laundry upstairs, and a few other little things.  We also spend about 2k in furnishings.  We've had our unit on Airbnb and VRBO for the last two years - we're probably 90% occupied.  

some things to consider:

- long-term vs short-term - short-term rental is definitely more "active" so be prepared to clean or manage cleanings by a 3rd party, also managing bookings, questions, and messages.    

- Check your local laws and regs!  Taxes, zoning, etc.  Any HOAs too.   

- If you choose STR - be very transparent about any possible noise disruptions, esp with the dogs. We have two little kids upstairs, and we set those expectations up front (book at your own risk!). Rarely any mentions of the noise.

- If STR - make sure your homeowner's insurance covers STR, many do not.

- If STR just be ready for problem tenants, it's gonna happen! But def take it in stride. (at least they're only there for a few days).

- Two years in, we've covered most of our mortgage and recouped that initial 10k. So definitely no regrets.  Don't forget the tax benefits on your primary!   This is a great way to make your house a true asset. 

Happy to answer any other questions you might have.  Good luck! 

Hi BP Community:

I am putting together my first buy-and-hold partnership deal together having four partners - me and three partners.  I am using OPM (other people's mulla), thus doing all the work of putting the deal and will manage the partnership/deal beginning to end.  I do not have the capital to put in an equal share, but plan to structure where my compensation is equity in the deal.  Not a large deal, probably 2 to 4-plex property.

Can anybody suggest how much equity I should propose to my partners for me putting the deal together and managing all aspects, but not putting any of my own money in the deal.  They will be "active" legally speaking as voting rights, but really playing passive roles.  I know in larger syndications, there is often 40/60 or 30/70 split.  But not sure how much to propose in this smaller deal; just looking for a starting point.  

Some things to consider - I have 13 years of commercial real estate experience, but this would be my first residential investment project/deal. I also have a BRRRR project in the works as well. They are taking a bit of chance on me, but I still bring a lot to the table in terms of experience and commitment to make sure we succeed (whatever that's worth).

Thank you, all! 

@Jason Breton @Eric P.in my opinion it's really a marketing/advertising effort.  The two medium-terms I've found have been off of Airbnb.  I include a note our profile that says we are always looking for longer-term guests - inquire with us if interested.  Other resources out there:

Airbnb, VRBO, Furnishedfinder.com, corporatehousing.com, Zillow, Craigslist, bluecollarhousing.com, facebook group - Mile HIgh City Healthcare Travelers (Denver-specific).  

Also consider your own network & expertise - what industries do you know or who do you know who might work with traveling professionals to market your rental.  

Pro tip: even if you find potential guests via Airbnb, consider signing an agreement outside of Airbnb - it will save you both money, esp the guest. 

@Jason Breton you could consider "medium-term" rentals instead. Leases or Airbnb/VRBO agreements longer than 30 days. I don't believe there are any regulations other than standard landlord/tenant laws for Colorado. Lots of corporate housing, travel nurses, blue collar/trade folks looking for 1-6 month housing. And being furnished, in Denver, you could probably demand some good rents. (I'm in metro Denver area as well and have considered the same for my STR). Hope that helps!

Hi @Maan Najjar - we list our rental on Airbnb, Homeaway/VRBO, and Tripadvisor.  The bulk of our activity is Airbnb (90%) and then VRBO/Homeaway (10%) - which has us about 95% occupied and above market nightly rates.  We received one inquiry from Tripadvisor but no bookings. I don't know anything about booking.com.  I'd stick with those two and keep it simple.  Hopefully you have integrated the calendars, that helps with the management of the sites.  Hope that helps.

Posted in General Real Estate forum as well.  

Hi BP community - Hope you can help! I'm wrestling with these questions.

I'm putting together an equity partnership to purchase a small multifamily property outside of my home state to buy and hold. I have partners/investors ready to go.

My questions are:

1. In order to obtain commercial financing (~20/25% down), do I need to create an LLC first so we can be underwritten as a business (LLC) - and then get pre-approved to purchase. This sounds like a "blind fund" - but what's the alternative?

2. If yes to above, registering an LLC out of my home state should be done in the state where the LLC will do business. What address will I use in that other state (if I haven't found a property yet)? I assume a PO Box, maybe?!

3. Should the operating agreement be put together when the LLC is formed and before we search for properties, or that better for another point in the process.

Thank you all!! And would love to connect with you.

@Alina Trigub

Thank you for the insight. I appreciate the response.I have discussed these matters with my attorney and tax pro. I think the nature of my question is more from the lending side. Trying to anticipate what a lender might need in order to pre-approve our LLC before we do a real search for properties. This way I can set the right expectations with the partners.

I am talking to a couple commercial lenders this week and hope to ask the same questions. I'll report back what I learn from those conversations.

Only do it if it convenient for you; otherwise just say 4pm.  And we have over 65 reviews and there hasn't been one guest who we approved to check in early actually put that as a positive in the review.  I wouldn't worry about setting an precedent.  It's def at your discretion.   

Hi BP community - Hope you can help!  I'm wrestling with these questions.  

I'm putting together an equity partnership to purchase a small multifamily property outside of my home state to buy and hold. I have partners/investors ready to go. 

My questions are:

1. In order to obtain commercial financing (~20/25% down), do I need to create an LLC first so we can be underwritten as a business (LLC) - and then get pre-approved to purchase. This sounds like a "blind fund" - but what's the alternative?

2. If yes to above, registering an LLC out of my home state should be done in the state where the LLC will do business. What address will I use in that other state (if I haven't found a property yet)?

3. Should the operating agreement be put together when the LLC is formed and before we search for properties, or that better for another point in the process.

Thank you all!!  And would love to connect with you.  

  

Thank you @Jim D. / @Deren Huang / @Theresa Harris !!

I appreciate your insight!