All Forum Posts by: StacyA McBain

Septembers AVID Investor's Club meeting, Boost Profits; Destroy Waste, has the power to put rental cash right back into your pocket, where it belongs. You'll walk away knowing whether you're doing everything you can to thwart avoidable expenses. You'll also receive tried and true tactics to capture available revenue from your rentals. Whether you own investments, or plan to; and whether you manage your own or hire it out - this meeting will help you make sure you're not letting your potential profits quietly pass you by.

Come on out this Wednesday to network, share, sip and learn!

AVID Investor's is Boise's member-based REI club, free of charge. Please request your invitation from [email protected]. Meetings are held in Meridian, Idaho.

Hi @Kapu Mamiya

Your Zillow use is a great way to verify actual, local rents (referencing active listings only for comps). So is Craig's List. 

Zestimates for home values are VERY hit or miss automated models and shouldn't be trusted.

Use actual sold comps. I think Realtor.com is a legit source for that (I use the MLS).

I like to see and provide those comps in a couple formats - one in a spreadsheet format for data comparison and also in a more detailed format with photos so I may compare condition and curb appeal. Once the market data speaks, you should be familiar with the definition of a good deal, a really good deal and even an unrealistic deal (not all buyers are cut out for this market, as returns are lower than they were in 2010). 

Use a spreadsheet template to track results, so you're comparing apples to apples (don't forget to include actual utility costs, taxes HOA fees and maintenance reserves (including annual sprinkler servicing, which we have here). Recognizing average returns is the best way to spot above-average returns. BP has a decent web version.

Repair costs are locally specific, so I would recommend making contact with the vendors you'll use so you can budget accurately if rehab is in your plan. Repair numbers can be run in many ways and if a wholesaler is at all used to doing his/her own labor, it would be easy to estimate low, since you'll likely be hiring labor out. I've seen those estimated low (labor isn't cheap here - I hear it's more affordable in California).

It's important to make sure you structure your purchase so there's room for values, rents and vacancies to ebb and flow (even though they've only gone up for a while now).

Finally - make sure you trust your team whether it's a wholesaler, agent or whatever. As an agent, this is how I earn trust - I consider my job to help my client (not sell them any particular property or chase commission - on the contrary ... I remind many clients not to be afraid to walk away from a deal and help them verify expenses). I share my vendor resources, and my opinion of market value/gut on whether it's a good deal, but I also back that opinion up with active sold comps from the MLS because there are individual interpretations to all data, and in the end, you need to personally interpret it as a good deal for your unique scenario.

Happy Investing!

StacyA McBain

Swope Investment Properties

Jeff Beard:

I'm not an attorney, but might suggest checking the exact verbiage of that lease clause - if the lease is null and void while they're still in the house, instead of voidable by Landlord, you could be exposing yourself to risk by giving up rights the lease affords you.

As for the lien - that's absurd! Please update the thread when you clear it, hopefully without challenge.

My accountant had her note called on a SFR after quit claiming it to an LLC. It was found out and called out after an escrow error. To correct, she deeded it back to herself and the note stayed in place. Her own experience is the only one she's heard of being called and many of her clients use that practice.

Washington Federal for Commercial Loans. Bryan Churchhill keeps pretty busy, due to some compelling packages. (Although they all seem pretty busy at the moment). 

Happy investing!

Stacy

Thanks for the great info @Jerry Padilla!

Lending intricacies have a huge impact on investor purchases and I expect I'll be referring back to your updates more than once.

HI @James Midgley

Welcome! You're very welcome to check out AVID Investor's Club as well.

Shoot me an email to the email address on my profile if you'd like an invitation. 

Happy investing! 

Stacy

Welcome @Colby Bradley, 

You're in the right place, as @Jonna Weber has said (thank you for the mention Jonna!). Word of mouth is the most effective form of "advertising" and investor groups are indeed a great place to network, learn and put effort toward success in real estate! PM me if you'd like an invite to AVID Investors. 

Happy investing! 

Stacy

Hi Hannah, 

I have one studio vacation rental that I've run for five years or so. The maintenance costs are much higher for a vacation rental than a regular rental, since the owner, not tenant, pays all the utilities, internet, yard maintenance and general maintenance. That said, it should net you a bit more net income and a lot less passivity.

Your expenses will affect your returns. Air Bnb and VRBO is popular enough that you should be able to find rental comps for your area. A condo may pose more risks of neighbor complaints than a single family home and CCRs would need to be read to ensure short-term rentals aren't prohibited.

The more you charge, the pickier the guests and the more to budget for regular re-painting, new towels and sheets, etc. Remodeled properties rent for more, but there's certainly a market for budget properties as well. 

Occupancy rent, rates, etc will vary by area. I charge more for short-term than for multi-month, but a 50% vacancy would be safe to budget in my scenario.

Pets will be a frequent request, so you'll need a policy. Our studio has no yard, so we don't do pets, or incur that exterior maintenance cost. We tend to make an exception for long term rentals (one to three months, which we accept during the off-season). 

In summary, this is by no means a passive endeavor - it nets a little more money and a lot more effort. There also are management companies that will handle it as well for a 25% - 35% fee. 

I recommend being clear about what you include and what you exclude, and having multiple cleaners you can call to help with turnovers, and putting all mattresses in moisture and bug-proof mattress bags.

Good luck!

Stacy

@Michael Key

Welcome to Boise! Let me know if you'd like more info about local deals, market returns here, and/ or an invite to AVID Investors Club (we present market updates there as well). Local investor forums serve as effective ways to check out the area - AVID isn't the only option. We meet this Wednesday.

Happy Investing!