All Forum Posts by: Arthur Neves

I was searching for a tool like that yesterday, and found some old posts here saying that these tools over charge and don't deliver, because they don't have the actual data the websites do. So they do a guestimation bases on crawling these sites and assuming blocked days are booked.

I am reluctant to give my money to them as much as I would love to get a tool for it.

I am scaling my str in Kissimmee right now, and that would provide a big help.

Very good discussion. When I talk to my friends that are most millenials, they think I am crazy investing in real property instead of just buying REIT ETFs

It's funny that I almost would agree with them due to my lower return in the properties I have. Besides one that I made 100% in appreciation.

I guess my biggest mistake is that I almost don't use leverage and have being buying cash, where the ROI after expenses can be around 6%. With that I could just have REIT instead and beat that.

However I will re organize my portfolio and leverage it.

My question to people is, with the 1-2% rules and the 50% rule. Would you see returns of 10-20% using leverage? Thinking about the math, I can't see that happening if both rules aren't a requirement for the deal.

Thoughts?

Hi,

My situation is the following, We have 3 properties under an Inc in the US. We are Canadians, thus didn't have an SSN neither could open an LLC when we bought the properties. All the properties were bought cash.

Now, we are moving to the US, and I got a job offer paying me 180k+ year. Thus I will have some income to prove for conventional mortgages.

We have no credit score yet, as we just moved, but building that with secured CC.

My question is, I want to get more properties, and use leverage for it. So, my idea was to move all 3 properties to my personal name and finance them(maybe 20% down), then eventually move them to an LLC. And buy more properties under my name again, and repeat.

Most of the steps I read a bunch of folks doing that, like the finance and move to LLC part (I am aware that some banks could ask for full payment when moving for individual to LLC).

However, my biggest question is, can I sell the property under the INC to myself(individual), and finance them? How much in fees am I looking at, roughly, would that be worth it?

Also, Can I do it even without a credit score for now? (only with my pay stubs, and showing cash investments?) Would that qualify me for a conventional mortgage? (or should I wait a few months to build some credit, how many months would that be, 3-6?)

Thanks, everyone, we are moving to Orlando Florida, and we are eager to connect with folks from this forum in person.

Out of interest, have you considered Windsor hills? It is older, but I think that might be a plus as properties will be cheaper, and people know it already. And it is the closest to Disney as far as I know.

I also, wonder, if from an Airbnb guest perspective, if they really care about the community or not. I would think they would first look at the price and location, and then what it offers (value for money).

I am saying those because I am currently looking at properties either in Windsor Hills or outside, but something I can pay very low HOA fees, to increase my ROI.

@Jerry Padilla

Thanks for the answer. If I buy a new property under the corporation name (deed, hud,etc will be under the Inc.), and take a mortgage to pay for that. Can that mortgage be a loan to the corporation, if my personal name is as a guarator? 

Is that possible, or the bank will want my personal name to own the property as that will be the collateral for the mortgage? 

congrats @Kerry Baird. We are in a very similar process, we started out Airbnb in Orlando, FL, March this year.

Have seen a 100% occupancy rate in March and April. And a slower decrease in May and begining of June.

Very good questions. I was going to post a similar post asking those.

My situation is very similar and I want to explore my options to grow my business, my situation:

- Have 3 properties under an Inc, all paid in cash. 2 are long term rentals and one is a STR.

I want to expand my business and refinance my portfolio, maybe the STR as it is worth ~$400k, and pay 20% down on other 3 or 4 properties. I wonder if I am likely to get some mortgages under my Inc with the income I can show there.

Side note: I have a full-time job, and can show a W2 income of more than $160k/year. Wondering if that helps to get the mortgage under my Inc, or if they will not consider my personal income.

Thanks all

Hi Michael, we started the same process of searching about 2 years ago, and now we are finalizing the purchase of a townhouse we thought would be a good one for STR. We've spoke with about 5-10 property management companies and saw at least 30 houses before buying this one.

Your numbers roughly seem accurate, as others said firstly look at HOA+CDD how much will that cost, than electricity is a big bill I've heart too.

On the location, we ended up really like the community called Story Lake. It is in Osceola Parkway, which is the road you take to go to Disney. It takes 10 minutes a day no hayways necessary to go there. It has really good amenities, and they are building it still, so you can find brand new condos and homes.

They have a bunch of condos, I was pretty attempted to get one, but ended up investing more in a TH. I probably will get a condo as a second if this turns a profit this year.

Now, on being coservative, I think I am in the other side of the scale here. I am not super aggressive, but after crunching the numbers multiple times I realized the worst this can give me is 2%, which is inflation rate. If that turns to be giving me anything like that or lower for 2 years I will sell it an move on. But until then, I will never know.

In regards the property management company, you can find ones that charge 15%. And occupancy rate at Story Lake should be at least 60%.

Hope it helps

@Richard Ibeh  Thanks, That's s good advice.  We indeed expect to have some learning curve in the beginning,  and that's ok. We are not in a rush to make full return on it.  I think my main concern was if it would EVER make some return. But the sense I got from some folks here is that it will, and probably outperform a 5% revenue 

Hi everyone, I am not new to the forum, but I think this is my first time posting.

3 years ago, my wife and I were thinking of buying a property in Kissimmee and started looking. Two years ago, we were also buying some other long time rentals in Atlanta, so at that time we didn't dive all in Florida. 

We now feel is the time to invest in Florida though. The main goal with the property is: 

1. Make cash flow positive renting it for short-term. 

2. Use it two to four times a year.

For the past week, we've been actively looking at townhomes, and our price range is <350k. We found some good ones (5bed/4.5) in Windsor at Westside, and that seems to be a good community that short term renters look for. (from speaking with people and reading reviews online)

If someone here has experience in this area, I would love to hear your thoughts to validate some assumptions we have so far:

1. Our first goal (rent it as short-term to make cash flow positive) is the most important one, we would even drop goal # 2 in years that we are not performing as good as we would expect. Also, we would probably only stay in the house during low seasons.
2. We would not be taking a mortgage, as we have the money invested in ETFs, making ~5% year (that yield number might really not be true depending on the year)
3. We live in Toronto, Canada. So we would definitely look for a Property Management company in there(recommendations wanted), However, we would like to be as hands-on as possible. We are comfortable in doing all the marketing, and posting into multiple channels(airbnb, vrbo, custom website). Also, any remote communication with the guests. However, we will need boots in the ground for things like inspections when guest leave, cleaning, answer call-outs by guests that need immediately or next day assistance. For that, we assume we could find a company that would charge a flat fee for the management and charge extra per callout as well as per cleaning. Is this possible?
4. Given we are putting all money down, there is not much equity to be built. My estimative is that the house would appreciate about 2-3% year (looking at the past 10-year housing prices in Orlando). 
5. With an occupancy of ~80%, and an avg nightly rate of $160 our gross revenue would be ~ $46,592.00.
6. WIth costs including Insurance, property tax(and CDD), HOA, PM (and 5 callouts/year), pool maintenance, pest control, deep cleaning and utilities that should cost about: $17,284.00. (note I am not including cleaning fees, as I expect to charge the guest for it)
7. Making our Net $29,308.00, and 8.37% of the 350k investment. 
8. House expenses are about 2%/year (cost of new appliances, etc).

If all those assumptions hold true to some extent, we would be making ~8-10% year, which is way above an ETF standard investment. Of course, there will be more risk and more work for extra money. 

Any things we missed, any critique on our strategy or in our numbers? Any help appreciated. 

Thanks, community.