All Forum Posts by: Paige Kelsey

I have owned vacation rentals since 2010 and currently have 6 of them that I self manage. There was a time when listing cost1200 to  list on homeaway and vrbo. Those fees dropped dramatically once expedia was involved.  At one point I went with Evolve Vacation Rental to manage all the bookings - you do not pay the fees and it is 10% but they deal with the calls and the guest. It worked great until winter hit and they couldnt hold the bookings I was holding. I list on both airbnb and homeaway and maintain a 20-25 nights booked EVERY MONTH. I do get more with airbnb but really it depends on the lisitng. It is a different client for sure. The 4 bedroom home, does better on homeaway. The little cabins do better airbnb but the booking brought in make it worth it to advertise on both . Bottom line, if you are doing this  vacation rental well you should all be making  a LOT of money, if you did the work going into the deal and buy the right houses, you should be able to hold the same numbers I do.  A heck of a lot more than you would on a long term.  Hit me up if you want more info @kelseycommercial   

But.....
 

Not every house can be a good vacation rental.Sorry but no, it is not exactly a dream vacation if the house you have looks just like your neighbor's house back home.  In sum, if fees are going to be your breaking point I wonder, did you buy correctly, are you committed to the buisness or are you committed to making a few extra bucks. This is a very different thing,     

I was trying out the BP rental Calculator as suggested by Brandon Turner on the last webinar I watched. He was talking about apartments but I didnt see why I couldn't  analyze deals for clients on retail or office space as well.  Looks like this doesn't pencil AT all if you have to put down 25% . Question- 

1) I thought there was somewhere in the calculator that you could then see what you would need to buy it for in order to hit the going cap rate or the cap rate you are looking for? 

2) If you were doing this for a client - would you run a completely different report if it was eligible for an sba sooo it could be 100% financed. Or..............if you were the listing broker wouldn't you just go to one of the 2 existing tenants and teach them brrrr. ie - You are currently paying 1000 a month... If you got a small business loan, it could be 100% financed and someone would pay you 1800 to OWN the building. Come on guys..........That's right isn't it?

3) Can you give me feedback on the numbers you put in? IE- ohh I put management but it is 2 units and it is commercial.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

@Brandon Turnerundefined

As an investor my money spends just as well as yours does. As an investor I am frustrated in multiple markets by the lack of professionalism be it because of a lack of information on a property, customer service or because folks feel like it is ok to ask me to send them a bank statement prior to giving me any additional information on a property. I get I, you don't wsnt to waste time with someone who is not qualified. I do that too. I guess I take people at their word and feel like it has worked out for me so far. I feel like it certainly doesn't help to build a relationship but maybe that's just me. I believe as an investor forum this is exactly the place to share my experiences  It is true, i am certain this is not in all markets . In no way is this all commercial beokers.Perhaps I have had some misfortune in my dealing,.i hope so. It's true.. around bp I am a tiny fish in the commercial side. I am looking at properties between 650k and 1.5 mil  and folks on thus thread have been on the pod cast- shoot, i can only aspire to that. The thing is though that if I am calling on  listings that I see you have in costar and that is the price.... I wonder if by choosing to weed me out as a candidate for the property doesn't tgat put your interest above that of the owner you represent? Just my thoughts for the day! Happy Tuesday.

650k - 1.5

I also would like to clarify that the actual reason for my frustration in the first place was first as an investor. I know that was not super clear but my husband and I have both commercial and residentail investments in Washington ,Ohio and Colorado. I had intended to expand that into a look at commercial office space in other markets as a way for us to further diversify our portfolio. When in another market  I have folks who do not return calls or can not give me additional details, I mind! I am already at a disadvantage not being in the same state as I don't have the luxury of having a relationship with a local broker and being able to get in my car and see the property super easily.Yes, we qualify, in fact I could have bought at least the last property in cash. The fact that a broker felt like they needed proof of funds in order to get me more information is appauling.  Given some of my expereince s as a broker here and  as an investor I chose the  forums to rant at my frustration in more than one market.

Jameson Sullivan if this isn't you,  that's great!  Yes sir it most definitely does effect me when numbers on listings are inaccurate and phone calls are not returned.  It was not my intent to suggest that ALL commercial brokers are this way. Fine, if you don't like what I had to say! You certainly have a right to your opinion and that is just fine with me.  Thanks soo much for the lecture but in the future it would be greatly appreciated if you might take a bit of your own advise and as you put it,"stay in your lane."

Happy Monday         

Are you serious?? I am a broker and I only work in Commercial and yet DAILY on these forums I am in AWE at the way some of you interact both on this site as well as out there in the big world!!! So, here is my rant.

1)Our fellow  residential agents out there even in the hottest of markets invest in taking great pics. They pay for stagers and work hard on marketing to a broad spectrum. They use RMLS and make sure to try to throw that net as broadly as they can. YOU! friends, do justice to owners in GETTING the listings but in general take the ******** of cell phone pics which may or may not include anything on the inside. You have pocket listings and do not cast a wide net. Yup, you might list on your sites, or on loopnet but what else do you see..............NOT MUCH! How bout we put a little effort in huh?

2)   Some of you openly admit and   say you do not even talk to people without having folks send over proof of funds. ARE YOU ******** ME? Yes, of course you are going to qualify buyers and help them understand commercial lending but your level of bravado is off the chain! Will you do this when the market turns? Apparently this must be a bigger thing than what happens here in Vancouver given that there is a whole stream on what to tell your commercial broker so they take you seriously. Wait, who's the client? I forgot!!! 

3) You list properties but do not return calls. What's the point?

4) I actually have looked into a couple of properties where the broker had never seen the inside of the building. These two particular individuals did not have the sq footage- for those, what they were being rented for, what the lease terms were for those tenants -NOTHING!! How would you as a potential buyer ever run numbers off of that? BP calculators can be amazing but come on now! The better part of those two stories is that there was actually a cap rate listed.....................Uhhh nope!! How do you come up with a cap rate when, you have NO numbers! When I asked this to those agents the response that I got was that they had looked at what other spaces were renting for in the area and went off of that. To you, fellow BP.........(not to them), I say I am embarrassed. 

5)Holy boys club! Hahahaha I have actually had a broker say in front of a group of investors would you really want to work with this little girl that isn't even with one of the big brokerages?My advise............it's ok boys!  I will answer calls, take care and know my listings, will actually take pictures and advertise in sum........I'm coming for you!  

Happy Sunday ! 

SELLl! You would have made at least 30k . You can pay off debt and be ready with more cash for the next deal. It is not always possible to Brrrr from the first one. Many people will do a few flips to up their capital to the buy and hold but mostly as they do they are building relationships with local banks, credit scores go up and they get a line of credit fron the bank.

or.......go with a 2nd- home improvement loan and try to get that for the debt that you owe on you cc. It will at least be at a lower rate.    

Hi Ian,

You sure??? See below for a summary snip for the pdx market.-moreover cap rates in pdx at 5.5% multi fam and time on the market for i is 2 weeks, if that long!

"The Portland metro is in the midst of a massive apartment construction wave. Even as construction increases and vacancies go up, the continued influx of well-educated young professionals may mitigate concerns about supply-side pressures. Population growth has been robust, and the State of Oregon has ranked in the top five nationally for in-migration moves to a new state for much of the cycle.

After record-breaking rent gains in 2015, the Portland City Council passed several pieces of legislation aimed to curb rent growth and increase availability of affordable housing. In both 2016 and 2017, rent gains slowed significantly, especially in the urban core. Supply-driven vacancy increases are a strong force behind this trend. Sales volume reached a record high of nearly $3 billion in 2016, thanks to the strong presence of institutional and value-add investors, but achieved less than half that sum in 2017."(Costar)

Good luck in your search!

Paige