All Forum Posts by: Gabrielle E.

This property has sold.

2318 2nd Ave, Richmond, VA 23222

Link to pictures

Purchase Price $115k
ARV $237k
Rehab Estimate $50k
4 beds, 2 baths
1,629 sq ft
Rents for $1200/mo

Rehabbers looking for more bang for your buck!! This property is eligible for tax credits through the Virginia Department of Historic Resources!

Landlords looking for a stable investment!! This property is currently rent ready with a paying tenant in place!

Bring your contractor to see the property this Friday, July 6th at 2:30pm
Showings will not be offered at any other time

Please do not disturb the tenants

Contact Gabby at or 804-398-8650 for questions or more information

COMPARABLE SALES

2414 4th Ave - $263.5k - 4 bed, 2 bath - sold 5/2018
2811 3rd Ave - $255k - 4 bed, 2 bath - sold 3/2018
2827 4th Ave - $249.9k - 3 bed, 2 bath- (Pending)
2517 3rd Ave - $228k - 4 bed, 2 bath - sold 6/2018
3022 2nd Ave - $228k - 4 bed, 3 bath- (Pending)

2102 3rd Ave - $225k - 3 bed, 2 bath - sold 4/2018

Link to pictures

@Paul Sandhu true, I just added cleaning, restocking, and wifi/cable fees. @Jason D. she plans to refinance so i'll have to see what the new numbers look like

Alright, so it took me about 3 months but I have a seller who's interested in letting me airbnb her property. Its a 2 bed 1 bath condo that's a 3 min drive to VCU and 10 min walk to the campus. It would definitely make a good airbnb rental. She's fine with me taking over the property subject to the existing financing, but her financing is pretty funky. Here's the situation below:

• Rents for $1050/mo
• HOA fees are $210/mo
• Purchased 10 years ago for $146,000 through a line of credit with interest-only payments
• Owner's payments just went up to $900/mo
• Taxes $1168/year. The property was renovated by a rehabber who got tax credits on the condo conversion so now the tax credits have expired and the tax payment just went up to $1168/year
• Condo insurance amount unknown
• Property doesn't need repairs

So altogether the monthly payments are around $1310/mo

I researched airbnb rates for the area and the property could bring in $59-76/night for a 2 bed 1 bath in the VCU area within walking distance of the school

If I put the property up for $67/night it could bring in around $2,000/mo

Thoughts? @Alexander Ramos @Paul Sandhu @Jason D. @Thomas S. @Edward B. @Ned J. @Luke Carl @Ethan Cooke @Corby Goade @Heather Eshelby

@Rick Pozos Thanks for the feedback. The owner is doing this kind of deal because her husband passed and she wants out of the property. I can agree with your statement on the spread and taking over payments. I would get the deed immediately at closing. I appreciate the feedback from everyone, I won't be buying this property.

@Jon Holdman thanks for the feedback. Would you suggest just renting the property to at $900/mo vs doing the sandwich? I understand that the risk of  the Due On Sale clause could still stand when title transfers

I have an opportunity to buy a property using a creative purchase strategy and I'd like some feedback on the deal structure. If anyone knows the Virginia market, this property is located in Petersburg, VA in case that influences your feedback.

I have negotiated subject to and owner financing to purchase the deal using the following structure:

• I will pay $8k in cash
• I will take over the existing $59k mortgage payments (28 years left) of $506.70/mo PITI payments
• The owner will wrap the remaining $8k into a second 15 year mortgage of principal only payments of $44.44/mo
• Total monthly payment $550/mo
• The Deed of Trust will transfer to me at closing

I will sell the property via Owner Financing to a tenant buyer using the following structure:

• Purchase price $85k
• Pay $10k down
• I will finance the remaining $75k for 10 years at 10% interest
• Monthly payments of $1000/mo
• Buyer may cash out anytime after the first 5 years
• Tenant buyer covers repair costs
• Deed of Trust transfers when tenant buyer cashes property out

Basically this strategy is a way to get all my money invested out of the property and avoid typical rental property expenses to keep all of the cashflow.

@Ethan Cooke I decided to post the questions I would have PMed you here so that everyone can gain something from your response. How do you find corporate AirBnB tenants specifically? If I post an AirBnB ad with a 30 day minimum, will it attract these type of tenants? Would you suggest AirBnB hosts to use studios and 1 bedroom apartments to have success?

@Heather Eshelby great idea about the out of town landlords. I just wish I could talk to the owners face to face rather than over the phone. I usually gain so much more rapport in person. But great strategy regardless

@Edward B. nice tip about the landlord savings with property management and maintenance. I could even develop a nice list of benefits that I can present to the owner so that they fully understand their advantages in the equation

@Corby Goade I wouldn't expect the landlord to pay for furnishing the unit. I think that would be an expense I would need to cover, seeing that I would be the one converting the unit to an AirBnB rental

@Ethan Cooke PM coming shortly :)

Thank you @Edward B. I will reach out shortly