All Forum Posts by: Greg Hills

I'm looking at an equity investment in asset that will be managed by short term rental operator -- similar to Sonder, Lyric, Kasa. The deal hinges on a path of right hotel permit for this asset in a commercial zone. Is anyone familiar with this type of zoning in Des Moines? 🙏

Hey @Darson Grantham thanks for the reply. Yes, seems like regulations are still in flux. 

Upon further research, the asset that is zoned commercial and there is 'path of right' to a hotel permit, which is how the mgmt company operates.

If anyone has understand of path of right hotel permits in Des Moines, would love to hear from you. 

Hi folks,

I'm considering signing a management contract with Kasa, which does short term rentals.  Are these type of management companies --- Kasa, Common, Zeus -- regulated differently than Airbnbs?

Greg

Thanks @Ahmed Saad and @Basit Siddiqi!!

Thanks all! I'm talking to a lawyer tomorrow based on referrals from this site.

@Ahmed Saad thanks, that is very helpful! Its less than 6. Does the roof review come as part of the standard home inspection to get a mortgage? 

How much diligence should I do before vs. after making an offer?

Also, does anyone have a lawyer they recommend for doing multi-family deals in Brooklyn?

@Syed H. thanks, super helpful. How do you arrive at the price sq/ft? Fixed $ amount!

@Jaysen Medhurst That's why I'm pandering over here! Thanks for the guidance. So far as 2-3 hour drive, how often do you find yourself visiting your properties?

@Syed H. thanks for chiming in! 

How would you model CapEx? You do an Excel with columns:

1) item, e.g. roof

2) replacement cost $

3) expected lifespan in years

Then arrive at an estimated yearly cost, as well as an estimate for how much capital needs to be held in reserve?

Hey @Randy Gutierrez, yes I'm seeing similar. Price of entry for single building is $400k or so. Seems hard to scale without multiple millions of equity. 

@Jaysen Medhurst

@Jaysen Medhurst

Thanks again for the help. I checked out your LinkedIN and saw I graduated the year after you at Columbia. Small world!

I updated vacancy & CapEx per your suggestion, and $20k repair cost.

My thought was that if my $1.2M offer were excepted, I would have created equity by buying below market value. Your logic is hard to argue though. Maybe if I sourced something not on MLS I could get below market value, but if its an open market transaction, then yes, purchase price is definitionally market value.

re: rate, you were right, my broker assumed I was occupying. Investor loan requires 35% down, 3.875% rate

Updated report

View report

Haven't looked outside NYC yet. I liked NYC because I know the market and can visit the property. But these numbers look terrible compared the return/liquidity/ease of just doing SP500.

What markets do you invest in? Absent any other input, I was going to look at Jersey City, East NY next. 

for $70k closing

Let me know if there are better figures.