All Forum Posts by: James Alderman

Is the legwork and costs associated with the first conventional loan necessary? Can you max out the HELOC and find another $10k to finish the rehab? Then you'll only need to refinance and pay the loan closing costs once.

I can see the benefit of immediately refinancing if you don't have the extra $10k, if you're concerned that the rehab may exceed your estimate, or if you'd like to have the HELOC ready to purchase other properties while this one is being rehabbed.

Hello all,

What books/resources do you recommend for negotiating, structuring, and managing partnership deals? I've only partnered with family at this point, and I'd like to be more knowledgeable when speaking with friends who are interested in investing with me. Thanks!

A quick search indicates that a 20-day notice to vacate is required for M2M leases in Washington. If this was my situation, I would explain to the tenant their options: sign a one-year lease or vacate in 20-days. If they chose not to sign a new lease, send the notice by registered mail or have them sign some sort of receipt of notice. I would get my attorney involved if it looked like the tenant was going to cause issues or if it came to an eviction.

I'm not sure about local or county ordinances. I would speak with an attorney if you think this is an issue. 

I own a triplex about 100 feet from railroad tracks, and there are multiple trains that come throughout the night. As a LTR, I disclose in the listing how close it is to the tracks, and I also repeat it in the screening calls. I'm always surprised how many people tell me that they do not care about the tracks because they grew up near some, etc. I have not had any trouble renting the units, though it is in a growing market.

I also have a STR about 400 feet from tracks. The bedrooms are on the opposite side of the house and it is a newer home, so I do not disclose the tracks in the listing, and I have not had a single complaint from a short-term renter.

I hope you can find a solution that suits you.

Wow that's great @Stephen Brown. How long did you hold it for? Good to see you getting after it.

@John Dersoe Mobile homes typically come with a HOA which can be pretty strict when it comes to STRs. You'll also need to check for city ordinances. The revenue will not be as good as a similar single-family home STR.

Maybe you can find a one-off beautiful mobile home in a prime spot without STR regulations. But maybe your time would be best spent with another strategy.

Hello @Jennifer Campbell, I'd recommend asking anyone that you know in the area, possibly beginning with your realtor. I've had great luck posting in local community Facebook forums, "Looking for recommendations for cleaners in TOWN NAME." After getting recommendations, I do my own research to see if they have any reviews, etc. I begin calling each cleaner with this script:

1) Have you worked with Airbnbs or STRs previously?

2) Are you willing to do extra tasks? Like documenting damage, taking inventory, etc.

3) Who will be cleaning the unit (you or employee)?

4) How flexible are you? How much notice do you need for a turnover?

5) Do you use your own supplies?

6) Do you have mixed skills? Such as troubleshooting a TV or tightening a doorknob.

7) Are you willing to do laundry? On or off site?

8) What is your rate? How long will you be there? Holidays/weekends?

You may have more questions you'd like to ask, depending on your situation. If you aren't using a property manager, then your cleaner essentially become your de-facto manager, informing you of anything that is broken, needs addressed, etc.

@Jon Fletcher how large was your scope of work for the $10-25k proposals?

For cleaners, I would recommend asking your realtor or any other connections you have in the area. I've had great luck posting in local community Facebook forums, "Looking for recommendations for cleaners in TOWN NAME." After getting recommendations, I do my own research to see if they have any reviews, etc. I begin calling each cleaner with this script:

1) Have you worked with Airbnbs or STRs previously?

2) Are you willing to do extra tasks? Like documenting damage, taking inventory, etc.

3) Who will be cleaning the unit (you or employee)?

4) How flexible are you? How much notice do you need for a turnover?

5) Do you use your own supplies?

6) Do you have mixed skills? Such as troubleshooting a TV or tightening a doorknob.

7) Are you willing to do laundry? On or off site? 

8) What is your rate? How long will you be there? Holidays/weekends?

You may have more questions you'd like to ask, depending on your situation. If you aren't using a property manager, then your cleaner essentially become your de-facto manager, informing you of anything that is broken, needs addressed, etc. 

I'm also looking to purchase a property with historical significance. You can receive a 20% income tax credit from qualified rehab expenses if you jump through all the bureaucratic hoops. I'm reading up on this now, let me know if you'd like me to share more info.

In terms of financing, I'm planning to use a bridge loan to purchase the property, my own cash and private loans for the rehab, and then refinance to a commercial loan. The property is zoned com/res.

Can you provide more context in terms of the purchase price, rehab costs, money you're willing to put in, etc? The income tax credits also depend on the use. What are your intentions with the property?