All Forum Posts by: Ethan Cole

Hi Yvonne,

We own properties in Fairmont, Clarksburg, and Nutter Fort, and we are consistently getting around $850-$900 per month on a 2 bedroom unit, and $1,100-$1,200 for a 3 bedroom. We typically get a little more if the unit is a standalone building (not a townhome or duplex). I'm not sure what the condition is of the properties you're looking at, but we expect a value of around $150,000 for a duplex in good condition (exterior in good shape, roof in decent shape, no significant interior cosmetic needs, etc). We typically don't buy single family homes, but depending on location and condition, $100 per square foot is probably reasonable to use for ARV. Maybe more if the finishes are nice and it's in a good location. Depending on the size of the gutted unit, $50k is probably not too far off. We recently got some quotes back on a 3 bedroom house around 1,200 square feet. The quote was for paint, flooring, kitchen cabinets, and general cosmetic updates on the interior, and some repairs to exterior porches. The quote came back around $35k. Hope this helps! Feel free to DM me if you have anymore questions!

I'm also curious to find out more about this.

I'm also interested. Let me know if you need anything!

Sorry for the late reply! Originally from Teays Valley here. I have a friend that operates STR's in Charleston. Were you able to find someone? I'm curious to know how STR's do there. My friend seems to do very well with his.

 Sorry for the late reply! If you still need a recommendation, feel free to send me a PM. I know a few in different areas of the state.

@Chris Seveney, assume that we're very profitable, and have been in business over 2 years. The total amount would equate to no more than 30k. What would you say to that?

Our business has about 60-75% of the funds needed to make our first move into the STR world. Do you think it would be a good move to use a business line of credit to cover the remaining down payment and possible furniture costs? Why, or why not?

Also, I can't seem to find much info on what typical rates/terms there are for a business line of credit. Does anyone have a good idea of what these might be?

Hey @Henry Lipscomb! One thing you can do starting out is consume as much info as you can from these forums, and listen to the podcasts. I probably listened to the podcasts for 4-5 years before i was able to buy our first property. Also, I live like 30-45 minutes south of Morgantown, so feel free to shoot me a PM! I'd be glad to show you some things, and answer any questions.

Depends on your overall strategy, and the area you are in. I have several C properties that we have been able to improve by doing what @Karl B. mentioned, as well as some necessary upgrades to major components like plumbing or roofing. Our strategy is to BRRRR as much as possible, so we can continue to scale. We have found that if we can purchase a property in need of some basic TLC, we can easily and fairly inexpensively update and improve them to justify a sizeable rent increase. This in turn helps us maximize the cash out at refinance. We also find that if we do certain upgrades, mostly cosmetic, other landlords will follow suit. This helps to up the market rent in the area which helps all of us long term. Hope this helps!

@John Underwood Those are great ideas! I'll check into those.

@Juan V Lopez We are always refinancing our LTR properties in order to buy more, and we should hopefully close on another in a month or so. I hadn't thought about using a LOC against our current properties though. That could be a good option. Do you know what type of terms a lender would likely use in giving us a LOC?

Several members have suggested a DSCR loan, which is something I was unfamiliar with until I made this post, and it's something that I will be researching as well. At face value, it seems similar to a LOC against our total portfolio. Am I off base here?