All Forum Posts by: Frank Geiger

Paint is cheap and covers the most surface area. A little paint can make the whole place feel newer. Then I would look at bathrooms and the kitchen. Look at your competition for rental properties in the area. Then you can decide what appeal they have and what you're missing. 

@Geoffrey Fellner must of missed the "low-end" comment. I am not saying not to do it. You may just need to structure it in a way that makes sense. I think this is a perfect seller finance opportunity. 

Not sure what your long term strategy is. But if you plan to hold 30 years, I would still account for some repairs and CAPEX. Sometimes you'll hear from tenants every other month about some small repair. Other times, you won't hear from them in a year and then they move out and you have to fix some flooring or something. Things happen.

Are you accounting for any expenses? I don't see this property working out without a lower purchase price or extended financing period.

Hard to say how much this really matters to an Airbnb guest since everyone is different. Check out the competition. Personally, I am staying in an airbnb that has the functionality I need at a good price. I could care less what color the cabinets are.

Make sure to check with the city to see if they need to pull permits. If they are adding plumbing or electrical, they will need to. We can't answer your REFI question. That depends on the comps in the area and how much you currently owe on the property.

I think once you add PM fees into the calculator it kills the deal. The CoC isn't great and splitting $400 with a partner on a $38,000 down payment isn't the best return on your money.

Your biggest risk by far is going to be inexperience. Things come up where tenants don't pay rent and it takes a while to evict; hurting your income if you only have 3 properties. Or you underestimate the cost of a repair and it takes more than you have saved up in the maintenance account. And much, much more.

Using debt to scale a portfolio isn't always a bad thing. If three properties is all you want, that's great you hit your goal. But you have much more risk exposure if one is vacant and you loose 33% of your income for a month or two. 

Don't overthink it man. Just get a rolloff dumpster put on the property for a few days. Then schedule them to come pick it up.

Good deals don't last for 30 days. Most likely she thinks:

A) You aren't a serious buyer

B) She is swamped with clients and is not prioritizing you because it will take more of her time

Voice your concerns to her. As long as you didn't sign anything with her, there is nothing that says you can't have a few agents.

Sounds like you "trusted" a lot. Unfortunately, a lot of us have had similar experiences with contractors running off with our rehab money. All you can do is screen better and learn from it. Hope it all works out.