All Forum Posts by: Bob Willis

I truly believe people who stay in Airbnbs expect them to be spotless and sanitized. They tend to really look at things through that lens. Not sure people have the same expectation at the Days Inn they stay at along the interstate. I know there are really nice hotels that don't fit this example because I am not talking about those. Really nice hotels, at least around here, have nightly rates close to the Airbnb nightly rate (and it's just a hotel room vs an entire house or condo, etc). But I cannot wait for the follow-up analysis on how this goes. @Easton Hill - thanks for posting and I look forward to hearing the results.

I use Vantage Self-Directed IRAs out of Scottsdale AZ, they can provide you with much guidance and other professionals to assist you. I have no affiliation with them outside of my IRA.

Quote from @Kevin Branin:

Quote from @Brett Tvenge:

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $305,000
Cash invested: $13,000
Sale price: $379,900

305k purchase price
4k closing cost
4k holding cost
13k remodel
13k closing cost on sale

380-339k = 41k profit

What made you interested in investing in this type of deal?

This is what we do...

How did you find this deal and how did you negotiate it?

Wholesaler

How did you finance this deal?

10% down, HML

How did you add value to the deal?

Spruced it up, new carpet, new interior paint, new countertops, painted cabinets

What was the outcome?

Made some money

Lessons learned? Challenges?

0

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I'm the agent on the sell... used are normal wholesaler, contractor, and HML

If you had a 10% HML, that's 30.5k down of your own cash. Plus the CC make it 34.5k. Add in holding and reno, that's 51.5k cash out of pocket. Where did you come up with 13k?

@Kevin Branin I think you are mixing some things up with the numbers. The $30.5 k down is included in the purchase price. The $13k you reference I believe is what they spent on the rehab. The holding costs are $4k, probably to the HML. Which means they held this property and flipped it in a short amount of time (I believe).

Schlage Encode worked well for me - remotely setup new codes, delete codes, open remotely etc... Just need to make sure you change the batteries in the locks a couple of times a year.

Make sure you are onsite all of the time. Know what is supposed to be done, when it is supposed to be done, and who is supposed to be doing it. No one will care about, or know about the entire scope of what is to be done. Good luck. Keep us informed on how it's going.

I just looked at a multi-unit in a Class C area. Not sure it is something I want to bite off. What you describe in your original post is what I fear. Rents are currently very low, BUT many of the tenants have been there for years... There is lots of value add in the property, just not sure it would be worth it for me. I think I am still too new to dive into this type of investment.

In my experience loss of revenue (due to a covered event) is a separate coverage/line item on your insurance policy. That is something that would have needed to be included. It is not always part of a policy. You would need to work with your agent on that. Also what @Nathan Gesner said above.

Hey All - I am looking at an 8 unit building where 6 of the 8 units are studio apartments. The other two units are 1br, 1b. The prospective property in in a downtown urban area that is pretty nice. It's very near the downtown campus of a major university etc... I am just wondering about the experience anyone on here has had relative to renting studio apartments vs larger units. Not sure how big of an effort it would be to combine units (take from a studio to another 1br, 1ba). TIA. Bob

Do it just before you are getting ready to make offers. That way both you and the seller know you are ready and able to purchase.

Tenants are not your friends. I am not saying they are your enemy, but they are NOT your friends. Keep it a professional and not a personal relationship.