All Forum Posts by: Tim Schroeder

Get your lender to order another appraisal, from a LOCAL appraiser. This happened to me and the second one came in at sale price. What's frustrating is that appraisers (like everyone else) are a bit shocked at how high prices have gone in the Smoky's and they're actively trying to tamp it down. Which really isn't their job, IMHO. If there are valid comps at that price, then they should come in at that price.

I do disagree with the viewpoint that you shouldn't pay over the appraised value because it's not worth that. I believe a property is worth whatever someone else is willing to pay. Period. Also, I get told "people who pay over asking price are fools" on other forums all the time. That is nonsense. This is just supply and demand. When a property hits the market and has 5 offers the first day, the best offer is going to win. If you want the property, you better pay more than the next guy. If the cash-flow numbers still make sense, then good for you. But if you chase it and spend too much and that makes the numbers stink, then shame on you. I recently paid considerably over asking for a property. But it was under-priced, with nothing like it at that price point. So I over paid quite a lot. And now I have another property that is going to cash flow like crazy. Of course, this is for cash-flow investors. If you're buying for appreciation then this doesn't apply -- buying too high can kill you. But if the market tanks tomorrow, I won't care I'll just ride it out and continue cash-flowing while other people freak and try and sell. Sure, income will go down, but I have enough cash-flow to handle a sharp decrease in revenue.

If you want "a vacation home and make a little money", then you're probably going to actually "have a vacation home and lose a little money". Because they are two different things.

I love spreadsheets, but @Luke Carl makes a good point. If the deal is good and the *ongoing* cash-flow numbers make sense, then it doesn't matter what you spend to get it ready. Within reason of course. I'm not talking spending crazy numbers. What I mean is if it's already a rental with most of the basics in place, it shouldn't matter if you spend 3k or 25k, if it cash flows sufficiently. And if it doesn't cash flow enough to handle that, then don't do it.

I've bought three, already furnished, and still spent $8-12k each to get them up and running. Sold #2 a couple weeks ago. I JUST TODAY arrived back home from getting #3 up and running. Exhausted but loved every minute.

@Avery Carl you've helped so many people get into the Smokies (myself included) that I do believe you've contributed to the rise in prices in recent years!! Talk about forced appreciation!!! Haha j/k

I did not know that you can get "another" vacation home as long as it's in a different market. I assumed that only one was allowed. Is this true @Parker Borofsky ?

Ditto on the QB classes. I create a class per property then I can run P&L per class and see it all at a glance. I also track each property as a fixed asset, including amounts paid, closing costs, depreciation, etc so it gives a TRUE picture of a property's performance as an appreciating asset AND a cash-flow machine.  I too would like to pay someone to do this for me, so I can spend time making money not entering toilet paper receipts into QB

I use OwnerRez, which while not an accounting program, imports all charges, fees, taxes, etc from VRBO and AirBNB and more. (It also does a ton more in terms of management and automated communications, but that is a different discussion). Then you can print detail or summary reports to enter into QB. I also use it to print occupancy/sales tax reports for tax submissions. Miscellaneous expenses and bills and invoices get saved as PDF and dumped into DropBox. 2-3 times a year those get put into QB. Once a year I print QB reports and send to my accountant. It works, but I wish there was an easier way.

i have always shared my calendars but mine don't show cleaning days they show everything. How did you make it show "cleaning". Here's what mine look like

Besides theft, do you really want calls from people whining that they can't get their phone to pair with your soundbar? Ugghhhh.