All Forum Posts by: Bob Floss II

I’m looking at a property that is a fully functioning Airbnb with good rent history. If I purchase the property, do I inherit the reviews for the property or do those reviews stay with the owners profile?

@Roderick McCleary If you are single, go aggressive and buy a bigger income property. If you are married or have kids, get a nicer personal home.

@Rickey Wiley There are lenders the specifically do lending in this area. I use Fundthatflip and they do a great job. If you don't want to go that route, you need to find a private money lender.

@YiBing T. I'm having trouble following the facts, but it sounds like you received a counter from the seller with the seller signature, and you then changed the contract again, signed it, and sent it back. When you made a change to the contract, you effectively made it a new offer and the sellers signature is irrelevant. You do not have a contract.

If I'm reading it wrong and you did not make a change to the contract, and you signed the offer that was sent to you by the seller, you have an executed contract. Your options at that point are to enforce your rights under the contract, however at this point the contract effectively becomes as-is. The seller will not give you any credits or make any repairs in an attempt to kill the deal. Forget getting so much as an extension on your mortgage contingency so get your lending in order and ready to close on time. 

To those asking about enforcing contract rights, there is a simple solution. You have the right to record the contract so it shows up on title. It creates a cloud on title the title company must address in order to close. The seller must provide proof the contract is no longer in effect or they cannot proceed to closing with a new buyer. Contact a local real estate attorney and they should be able to handle it.

@Nicholas Pantaleo Buying cash and getting your friend to give you a 70% LTV at 20 years seems the best option. It will likely get you best interest rate and lowest payment. I know you didn't intend to have 30% tied up in each unit but with 92% rentals, it will be your best option.

On a side note, I don't know your exit plan for the property, but if the building is up to 92% rentals I would get involved with the board and find out the plan for the building. You have more than enough votes to sell all the units to a single investor and everyone can cash out for a nice profit.

@Adam Boonzaayer We don't make mistakes, just happy little accidents.

@Adam Boonzaayer You'll maximize your potential if you can look at value add properties. If you are not afraid to take on a property that needs renovation and results in increased rents, when you go to cash out refi you'll get the best bang for your buck. Build up a relationship with some local contractors and get an idea how much it will cost to fix up the run down two flats in your area.

@Mario Rosado @Jeff Burdick @Lumi Ispas I agree with Lumi, if you get an architect familiar with the City, they should be able to give you an idea if the property is viable. After that, meet with the local Alderman.

@Brie Schmidt Exactly my point. I have several clients that want to do Airbnb in Chicago but they have to find a property with a good rental demand for a purchase price that will give them a good ROI. The rental numbers look good but I was looking for the total investment to put into context the ROI.

@Henry Lazerow What is your total investment in the coach house? Do you own just the coach house or is it connected to another rental property?