All Forum Posts by: Greg Heden
Greg Heden has started 10 posts and replied 32 times.
Post: Average Vacancy Rates
- Posts 32
- Votes 18
Quote from @Account Closed:
Quote from @Greg Heden:
I am interested in building a STR (New Build Home) in Puerto Penasco, Mexico. Specifically, Playa Encanto. I am in the process of running through the numbers to see how this will pencil out and need the average vacancy and average rental rate. I searched Air B&B and VRBO but only came always with a date specific rate that seems to be highly dependent on demand (difficult to ascertain annual average) and no info on vacancy, what am I missing? I have been on Air DNA but the info is locked out unless subscribed. Thanks so much!
Mike:
My hope is that your previous 2,420 post were as upbeat and educating as the last. Sincerely-
Post: Average Vacancy Rates
- Posts 32
- Votes 18
Quote from @Justin Browne:
Hi Greg,
I think what the general response is going to be is, "it varies greatly." Which is true but not particularly useful to you. I tend to think of my short-term rental occupancy numbers as static and the nightly price as fluctuating. There is a price at which you could get 100% occupancy. It's clearly not a high price, or the price that is going to make you the most overall profit, but it can be done. A better question to ask might be; at what price could my place be booked 95% of the time? You can then look at comparables to see what others are charging for a nightly rate. Develop a range, for example $100-180/night. And then understand that to achieve 95% occupancy you will probably need to be on the lower side of that range. That should at least give you some placeholders for your calculation.
This is somewhat of an over simplification as there are many things that go into strong occupancy and the price you can charge, such as; decor, market conditions, season, amenities, location, etc. It's best then to try and find the closest comps you can in your calculations.
Best of luck!
Thanks Justin-
I'll hedge on the side of caution and see if those numbers validate the investment.
Post: Average Vacancy Rates
- Posts 32
- Votes 18
I am interested in building a STR (New Build Home) in Puerto Penasco, Mexico. Specifically, Playa Encanto. I am in the process of running through the numbers to see how this will pencil out and need the average vacancy and average rental rate. I searched Air B&B and VRBO but only came always with a date specific rate that seems to be highly dependent on demand (difficult to ascertain annual average) and no info on vacancy, what am I missing? I have been on Air DNA but the info is locked out unless subscribed. Thanks so much!
Post: Cost Segregation Study on Existing Commercial Buildings
- Posts 32
- Votes 18
Got it. Thx-
Post: Cost Segregation Study on Existing Commercial Buildings
- Posts 32
- Votes 18
I wasn't sure they were interested since their was no solicitation. Left a message for one and never heard back. I'll try again....
Post: Cost Segregation Study on Existing Commercial Buildings
- Posts 32
- Votes 18
Thanks for the invite. I bought them all as shell properties and designed/built-out the interiors. Also, have updates over the years. i do intend to keep for the foreseeable future since i utilize a portion of the properties in my business. Any suggestions on CS business to get an idea? Thanks Again!
Post: Cost Segregation Study on Existing Commercial Buildings
- Posts 32
- Votes 18
Ok, is this something your company can do?
Post: Cost Segregation Study on Existing Commercial Buildings
- Posts 32
- Votes 18
I am looking at a pretty big tax bill FYE 2022 and really could use some extra depreciation. Open to acquiring some more investment property, but unlikely before end of year. Can I or does it make financial sense to do a cost segregation study on the commercial office buildings that I have owned for 15-17 years? Appreciate any direction on this.
Post: Options on how pull Equity out of Commercial Office Investments!
- Posts 32
- Votes 18
Thanks for the feedback everyone. @Ryan Pubins The prepayment is in the loan docs, how can this be mitigated due to a rate reset? This was a 20 year note resetting every five years.
It seems like the best option is to refinance into a new portfolio loan. My current rate is set to adjust in April 2023 to the current 5 year treasury plus 2%, it is a bit lower than I stated earlier. Existing loan is 2.4M, looking to pull 1.5M out with a new loan of 3.9.New LTV would be in the 60's depending on appraisals. Original lender is not interested in the deal but my business bank has offered me a 10 year fixed/25AM, 10 year swap+2.5%,3-2-1 prepay, and 1/4pt orig. Thinking the added liquidity and controlling the interest rate risk are very appealing. All thoughts or recommendations welcome!
Post: Options on how pull Equity out of Commercial Office Investments!
- Posts 32
- Votes 18
I have several commercial office buildings(6) that I refinanced in 2018 with a portfolio loan. This loan is about (5) years into a (10) year pre payment penalty of 10%, carries a current rate of 4.76%, adjusts next April (5 year treasury + 2.76%, then static for the next 5 years). I would like to tap the over 50% equity position without a refi. I have significant positive cash flow, have owned the majority of properties for over 10 years, and have excellent credit. What options would you suggest? What type of terms/rates could I anticipate? I do not need the cash, just looking to put it to work. Thx in advance.