All Forum Posts by: Jeffrey Albaum

Hi @Andrew Geier my partner and I do a fair amount of business in the greater Cincinnati area and would me more than happy to put you in contact with our property managers, agent, etc! Message me for more details!

Hi @Ivory Coats! I'd definitely buy a property inspection report (assuming it was done by a licensed professional as opposed to some random person) for $50-$100! I'm going to need to get one done anyways so if this is something you already have I think that would definitely help to set you apart!

Hi @Anna Batchelor! I've heard that slightly tweaking your posting (either your description or even just changing the order of the pictures around) can help with that! Hope that helps and best of luck! Where is your STR located?

Hey @Cameron Stevens I know this answer is not very helpful - but it depends. It depends on your personal financial/tax situation and the best person to answer it would definitely be your CPA along with your attorney.

Hey @Matthew Johnathan Newton,

First off, congratulations! Sounds like an awesome deal and super excited for you! I don't own any STRs in Blue Ridge, but I have a few just over the hills in the Smokies. I think realistically you can use 10% of gross rents for utilities (water/sewer, electricity, gas if you have it, and internet), 5k for insurance (unless it's in a flood zone, going through that now on a property we're under contract for and a flood policy costs an additional ~5k). 
As far as occupancy rate - check out "Airdna.co". You can purchase data for the Blue Ridge area and it will compile rental comps such as average daily rates, occupancy rates, and other useful metrics based on the size of the property. Take what this says with a grain of salt and make sure you're comparing properties that are similar to the one you're looking at (layout, amenities, "wow" factor, etc.).

As far as management companies go - have you considered self managing? There's a large community of folks who do it, and although the argument can be made that a management company might increase your revenue 20%, when they take 35% of your gross revenue it still doesn't pencil out so nicely.... Still, 35% seems excessive even for short term management. I'd keep calling around to try and find other alternatives. I know some large companies like Vacasa or Avantstay might be able to help you out.

Hope this is helpful and please reach out if I can clarify or help answer anything else!

I think you need both....sorry if that's a cop out answer. Being all heart with no mind leads to making purely emotional decisions that aren't thought out, while being all mind with no heart takes away what it means to be human. Neither sounds very fun.

Hi @Brandon Montgomery! First off, congratulations on your first BRRR! As far as interest rates go - there isn't anything you can do about it however I'm imagining the rates (at least conventional residential) won't increase more than a percentage point - so going from 3.5 to 4.5...which although is a bummer, hopefully shouldn't kill the deal entirely. Hope this helps and best of luck!

See attached link for a mixed use commercial building located in beautiful Newport KY. Three units are residential and one is commercial. Total rents as of now are around $2300 not including the commercial space - which as it stands could rent for around $500.

https://www.remax.com/ky/newpo...

Hi @John Schweitzer check out Rentometer! You get 5 free rental reports for the area. Also could use HotPads to see what other rentals in the area are going for. Also, BiggerPockets has their own rental estimator: https://www.biggerpockets.com/...

 Hope this helps!

Hi @Ryan C. first off - congratulations on your increased property value! From your numbers, it seems like although you'll be able to pull out 225k, you'll still need to pay off the first mortgage of 136k, leaving you with a net "take home" of 89k before transaction costs. If you can use this 89k to purchase another property that also provides cash flow then you should definitely do this!

Another interesting metric to use is the "Return on Equity" calculation. Everyone knows how to calculate your Return on Investment (total annual cash flow/total cash invested in the deal) - but when you change the denominator in that equation to be "total equity in the deal" it provides a different metric that can help you determine if you should refi or not. When your "Return on Equity" becomes low, it might be time to re deploy those funds through a refi. to increase your ROE. Hope this is helpful!