All Forum Posts by: Charles Kao

@David Lowe

Partner with someone that can get you approved. Lenders in general don't like AirBNB income because it changes month to month and also you are one legislative change away from being out of business.

@Bennett Pinkley Banks require two tax returns of AirBNB income

because the income can vary so much which honesty I have to agree with although annoying. What I would do is get a long term tenant get it refinanced then transition back to

a short term rental.

@Andy Bailey @Don Gouge I was going to ask the same thing Don was. If you are just squeezing in rooms and bathrooms but everything is tiny I would not do so. If you are adding livable square footage via a dormer or finished basement absolutely. In my market a half bath adds at least 5k of value and a full bath at least 10k especially when currently only 1. If you can do all the labor and are proficient it definitely worth it.

@Tariq Arriaga

Do you have the experience to execute the plan? What about funds to maintain operations? What kind of financing are you securing that allows all funds for downpayment to be borrowed without the guarantee from someone else? Why would somebody put all the funds for the downpayment and not just buy if themself and put a property manager in place. The amount of time spent vetting you would likely be less than a local PM company. The question you need to be answering is why would somebody want to trust you with no skin in the game to do this deal with their money. If you don't have the funds for the downpayment I'd also consider what you can do to save some of the downpayment. When I had just graduated from college I was living in a trailer park with a 65 year old I met on craigslist because rent was only 250 bucks a month but I knew the sacrifice (especially my social life because I was single) would get me a downpayment on a second house. One of the first things I look at in investing with others who say they have no downpayment or money is how they live the rest of their life. Yes I have a big house now and go on vacations all the time but the best equity is sweat equity and if you have no money you probably have not paid your dues.

@Kadeem Howell @Lane Kawaoka What Lane said I would tend to agree with. My securities lawyer discussed some other options with me because I had accredited investors all from

the same state that were either very close friends or family but if that is your case probably best just to do a JV anyways or just offer debt.

@Lakota Tidd It depends but I always prefer families to students. Students move out every year so you are guaranteed 30

days of vacancy and if you have property management thats another half months rent for placing tenants so I'd go family all the way but students you probably can kick up the rent if its a prime location because you are charging by the room. You just have to make sure your model is appropriate to that. I don't find we get alot of students close to downtown however as its typically young professionals that are your typical renter.

@James Wise @Russell Brazil

Not trying to stereotype but I am. When you have somebody that is a news anchor their job is to get people to pay attention to them and I wouldn't say that ethics is a hallmark of that occupation. I never really looked into his investments because honestly he was so vain I felt he cared more about looking like a pro than helping people. Just because people have a podcast and are on TV does not mean they are credible.

@Adam Wallen @@Malinda Bender Welcome

both. If you are looking to network the RPOA meetups are a good places to start on Monday.

@Brett Lambert

Congrats!

@Maureen Nixon What @Joshua Birk said is correct. In honesty though if you don't sign the former no good agent will work with you because the good ones are so busy they don't have time to waste on someone that doesn't value their knowledge and experience. In reality if things just aren't working out and you aren't happy signing an exclusivity agreement I have never known although have heard of an agent to not let you out of contract unless you are trying to screw them out of a commission.