All Forum Posts by: Eric Sebast

@Mackaylee Beach, real rookie question here I'm sure, but what makes Cleveland, KC, and similar "turnkey" markets? And I'm sure there isn't a "list" of turnkey markets, but where do I go to find out that type of information?

So, to answer some questions, I'm thinking that we want to try more than just another ready to go duplex, so looking at either a BRRRR, or a STR (with no preference on the STR being in state or out of state). We are currently looking locally at a few buildings that we could either BRRRR, as well as a couple of vacation STR friendly locations to see if we can find one that fits.

If we do BRRRR, we would plan on it being local so we can drive there for and be closer to it in case anything goes sideways since it will be our first.

If we STR, then it would be at least 75 miles away so we can use a second home loan for a lower down payment.

Those are the two avenues we are looking at currently. Level of involvement, we can be fairly involved.

Just closed on our first duplex a month ago, have about $75k that we can use to buy our next property(ies). Not willing to doing a house hack, whats the best option for cashflow?

Hey all, just closing on our first property (duplex) thats finally been scheduled for Monday at 3pm. Doing that one traditional finance with 25% down. However turns out I know the owner of the property through work, and he is potentially looking to let go of the remainder of his properties, I believe a total of 7 or 8. All of them are good cash-flowing properties with almost all of them rented out to solid tenants.

My question is, is there an "easy" way to finance them? I'm guessing we're gonna be talking about a total purchase price around $800k-$1M, and it may be technically possible for me to put my hands the required typical 20-25% down, but its not something that I want to do.

He did mention that he refinanced them to pull cash out of them about a year ago and will have a pre-payment penalty on them if he sold them. Is it possible to assume his loans and make it easier on me that way with some possible owner financing on his end to me (no idea yet if he is remotely interested).

Any thoughts or ideas on how we could do this deal with the minimal cash out of pocket?

@Robin Simon, it is a 3 bedroom, 5 bath home, when I load the address in AirDNA it comes up as a 3/3, when I change it to 3/5 is when it jumps up, goes from about $80k to the $135k projected. I bounced around and its at $295 a night next July timeframe as well with discounts for weekly/monthly stays.

I hadn't thought about the 4.7 rating hurting them so badly, thanks.

Would it be out of the ordinary to ask the listing agent for the airbnb rental history so we can see what it truly is bringing in?

Hey All,

Looking for our first STR, and was looking in White Stone, VA, but expanded the search as there Isn't anything there ticking the boxes (looking for a 3 bed, 2 bath home right on the water with an expansive water view). Came accross this house in Piney Point, MD, but the AirDNA numbers don't make sense to me (increase drastically when I change it to 5 bathrooms from 3), then found it on AirBNB (but just listed as a 2bd/2bath home at just $280...

Looking for a little help to figure out what realistic expectations are, I don't wanna pull the trigger on it and find out its only gonna cashflow at half what I was thinking it would.

Zillow Listing: https://www.zillow.com/homedet...

Airbnb listing: https://www.airbnb.com/rooms/1...

AirDNA screenshot:

Just about to close on our first duplex, and shopping for our first STR, I'm competent to do minor bookkeeping, but I really don't want to and its definitely not my strong suit.

I'm thinking I only need like an hour to two hours per month maximum, where would I look to find a bookkeeper for just that amount of work?

Thanks!

Hey all, just about to close on our first property at just over $100k, talking to the CPA who we have used in the past he said he doesn't recommend doing a cost segregation because it would cost us about $3k for him to do it and since it is only a $100k house, he doesn't think its worth it to us to spend that.

So looking around, I found diycostseg.com, and with the audit support it would cost us $690 and just doing the quick tool says the first year depreciation would be about $29,000.

has anyone had experience with that site, or have any recommendations they could share? 

Hey all, first I apologize, I didn’t mean to cause such a stir. Second, I messaged back and forth with him yesterday, and we were both a bit confused, so he doesn’t use a property management company, he has one of his employees handle the management of his properties. He said that number was from when he called around a few years ago and that is the number that stuck in his head, so I’m assuming it must have been him putting all the numbers together for management, repairs and reserves. 
very sorry for the misunderstanding.

Was hanging out with a friend of mine in Nashville TN a couple of days ago, and I knew he had investment properties, but it's not something we've ever really talked about. Mentioned to him that we were under contract for our first (a duplex) and was just running through the numbers with him and he stopped me and said "You're only planning 10% for management fees", I was thinking he thought that was high and said yes, but once we got our door counts up we were expecting to be able to find a company that did it for 8%. He said I was way low and he's paying 30%, I asked if he was talking about an apartment complex or short term and he said no, multifamily buildings.

So my question is, is the Nashville area just crazy expensive for a property management company, is my 10% that I'm planning super low (I'm planning on managing it for a few months just to see how it goes before finding a PM, and I'm in upstate NY). Or is he being ripped off? I wouldn't think he's being ripped off, he's been doing it for a long time, and he runs a couple other businesses that do really well, but 30% sounds crazy to me as a newbie.