All Forum Posts by: Christopher Pride

Hi I am looking to develop 4 plex properties in the SW corner of Oregon. I have experience with fix and flips and I'm about to be (re) licensed as a Broker in Oregon.  I have never done a ground up build. I am looking forward to the challenge but could use the advice of someone more experienced.

The plan: Have close to 200k to put in, willing to do leg-work to buy land, get permits, build (likely modular/manufactured), finish, rent for 2 years and flip.  I could use someone with experience to mentor, help with financing hurdles, and advice throughout the process.  

I would also consider a larger or long-term project including buying and bifurcating, building in phases and other methods depending on property, opportunity and market conditions.

https://www.airdna.co/

Quote from @Min Zhang:

Welcome to BiggerPockets @Rama Krishna. My advice for you is to start small, do your research and take your time. You’ll learn a lot along the way! Best of luck on your journey

Someone mentioned but a good resource are the podcasts.  Start listening to them one after the other.  Take notes to reference later.  You'll come a long way with this strategy.

Quote from @Moshe Marciano:

Hi everyone,

I wanted to share my current situation and seek some advice. ...

You're in the realm of an attorney. If he's unresponsive you will need someone to force a response then file suit if need be.  Worst case you will need to seek a judgement if the situation can't be resolved otherwise. 

Quote from @Account Closed:

The deal looks interesting...

Wow thank you! That sheet is excellent. I went to the property and some other red flags came up. Namely due to location but there was significant industrial close by that really turned me off. 

From a numbers perspective it works but once we start adding what I estimate to be crunching 80k in repairs, coupled with a soft market for high-end homes especially next to heavy industry...

I decided on a soft pass. I threw out a lower number and they balked.  It's located 9.5 hours of a rough mountain drive so work would be difficult until spring.  

Thanks again for the workup!

For me, in the LTR game, it's tenants.  One bad one can wipe out a whole year's profit.

Quote from @Karolina Powell:

What will property taxes be when you purchase it at the new sale price?

Ok it took me a bit to reply  I went and took a look.  9.5 hrs both ways! There is definitely more work than I thought. 

That said...the taxes remain the same after the sale.  Apparently Idaho is a "non-disclosure" state.  Buyers receive a letter requesting the information from the sale but they are under no obligation to respond.

We have been living on a sailboat with 2 dogs, then a baby so I can definitely relate. Enjoy life. It's short and nobody I know regrets minimalizing, exploring and living a life free of regret.

Quote from @Matt Giordano:

Any B&B investors out there? 

Looking to purchase one and struggling with the right calculators to determine the real metrics.

As I understand it (recently looked at buying a former bnb) you need to treat it like any other STR with your extra costs such as food, etc  baked in to the expenses. Getting a good handle on those are hard if you have no experience.

Think of it like any other rental but calculate out what your food, linen, housekeeping, front desk, upkeep costs are just like any other expense.

Quote from @Gino Barbaro:

@Christopher Pride

What is the median income of the area, so you figure where rents can go. What are you looking to do with the deal? Buy and hold long term or flip? 

What is the unit mix and size of units? Are they separately metered for utilities, or can you bill back to residents?

I think expenses may be a bit light, especially 10k for initial improvements. Banks gonna want you to plug in a management fee. 

Median income is 51,500. Worthy noting it's close to light industrial and downtown commercial, albeit a small town.

We will likely buy and hold until I can do a refi and add to the portfolio.

Its the main house large 3br, 2, 2br and 9 1br. No separate meters so there's a fee added to the rent for all utilities.

Improvements are minor to have it rent ready. Mainly some paint and floor refinish. I intend on doing a cosmetic remodel prior to selling down the road but it's not ready for that. I can rent it with some lipstick improvements.

You're right about the mgmt fee. I will be managing it but I still should pay myself something.