All Forum Posts by: Daniel Green

@Julie McCoy  @Luke Carl @Justin Anderson Thanks so much for the feedback.  Always a bit nerve wracking when deciding on a place.  I've traditionally invested in NJ but the returns seem so much better in the Smokies.  Hope it turns out that way.  We want to put in hot tubs, create an outdoor space and perhaps swap the in-door whirlpool tubs into washer/dryers (although not entirely sure). Later on we want to put another house or two higher up on the property...maybe sub-divide and sell. Thanks! Dan

yeah- I'm just not sure if it was mis-managed/marketed or there is something about the property that makes it undesirable.  The rent role above is for one studio cabin.  So not a full one bedroom. 
There are 2 studio cabins and a duplex.  The duplex are larger.  Each is "two bedrooms"

Full disclosure this is the property (I hope link works): https://www.zillow.com/myzillo...

I'm estimating $90K gross revenue.  Not sure if that is too low or too high an estimate at this point.  Their financials gave me pause for some concern.  It's 10 Acres and there is an area to build another house or two.

I'm in in contract on a 10 acre property off of Wears Valley Road. There are 2 studio cabins and one duplex on the property. I was provided financials for one cabin (I have the other one and they are similar in revenue). My question is do you think there is an additional 12.5% taxes that need to be taken out of the gross revenue to get to net revenue OR is "Total Paid" what the owner received? I see that 3% that goes to AirBnB from Gross earnings. This is 2019 STR revenue:

Thanks for any input/guidance.  Trying to figure out actual revenue as a base for returns.

@Avery Carl I've offered over asking price but that doesn't really matter at this point since it seems that is table stakes.  Crazy market.  I was even considering waiving inspection etc....and of course there could be cash buyers coming in.

Abe:  Let me venture a guess- you are buying the property on Johnson Lane in Gatlinburg? https://www.zillow.com/homedet...

I also have an offer (hopefully I will win this one) on a multi-unit property but in Wears Valley.  Let me know if you want to chat.  I'd love to brain-storm with people investing in the area.  The property on Johnson looks interesting and I think is a good investment.

This is fantastic info.  We've been looking to buy in that area for about 2 months.  We've made several offers.  We just got rejected from our offer yesterday.  We offered $30K above asking.  There were 20 offers on the property!  Crazy market conditions right now in the Smokies!  We'll get there but your post is very encouraging.  I agree- all the AirBNB and houses for sale begin to look the same- pool table/media room, jacuzzi, fireplace, deck... it always help to differentiate your place somehow.

I've managed multi family in Weehawken and there is rent leveling (rent control) there.  Basically the above means you can not raise your rents each year above the CPI.  What iId want to know is if current rents on any investment property are market rents or much lower.  I'd also want to know if those rents were already registered with the town.  As most investors I'm not a big fan of rent control.  Which is why I'm investing outside of the North East frankly.

I've walked through a home, told the inspector specifically what I want to repair or add to the home and asked his opinion of current value and after repair value.  You need an experienced inspector to do this but they are out there.

Honestly, this is why I only look outside NJ for multi-family properties now.  The expenses including taxes make it tough to get a good deal.  I'm happy to chat over the phone if you'd like just ping me.

I would wonder what the motivation is for seller financing?  Perhaps someone tried to buy the house at $725K and it did not appraise for that amount and the buyer could not get a loan.  I own a 2 family and a 3 family in Northern NJ and I'm not sure this is a great deal.  Here are my 2018 expenses for a 3 family in Weehawken, NJ.  Mortgage includes insurance and taxes.  This was purchased for $725K. The monthly net is a bit better this year now that I've raised the rents