All Forum Posts by: John Herbert

@Tom Fisher 100%. we own several properties in this general area and they've been a gold mine; and awesome for starters or folks looking to add some to the portfolio.  And what you say about the reg sounds right.  Although my understanding is when the FLUM gets adopted for real, whenever that happens; this property will be unregulated ABNB use by right.  However it would also be high density by right as well so an investor might be better served by hacking this into 3-4 doors and doing long term rentals. In the meantime, for long term rentals on the house as-is, this property generally pre-leases in the October of the preceding lease year -- so we've never had a chance to try out the ABNB situation.  

https://www.zillow.com/homedet...

Turn-key cash flow investment as-is; and soon to be zoned high density so there is future development &/or ABNB upside in the outyears.  No other investment like this near UVA right now.  Professionally managed by a fantastic company but you can self-manage as well.  

A rare UVA investment property $2200/mo lease through summer 2024; with turnkey property management and rent covers the mortgage expenses with a 20% down payment (per owner) Close to UVA, this home has a wonderful location! Wood floors throughout and updated kitchen with granite counter tops and ceramic tile floors. It features a large fenced yard and lots of storage in the unfinished basement. It’s the only spot with a yard as well in that general neighborhood.

Alternative investment strategy could be to make a few updates (e.g., add a bed & bath to the basement) and re-list as a SFH. Great ABNB opportunity as well -- but look into the city rules & regs for that.

Hi Jonathan, thanks for this post -- how many sq ft are the units?  Cheers

• Deal Story:  Ownership dissolving for retirement
• Location: New Windsor, Carroll County, MD -- 6 Miles outside of Westminster
• Property Management:  Managed professionally for 10+ years; property manager will stay on with new buyer for Turn-Key acquisition --- 10 Years of Books & Records!!  All showing long history of 100% occupancy 
• Inspection complete:  All minor items; no deferred maintenance -- everything recently updated/replaced: roof (2016) , siding, systems, etc. most with warranties
• Unit Mix:  2 3bd/1ba; 4 2bd/1ba;  1bd/1ba -- all 100% occupied amounting to 6500/mo rent roll
• Value Add Opportunity:  Vacant 2bd/1ba cottage on premise that requires ~$15k to increase rent roll by $1000/mo
• Deal is already under-written by Revere Bank; with the following terms provided:
  
  • 4.5% Interest
  • 75% LTV
  • 6 Months I/O; transition to 25 Yr Amortization
  • 6 Year term:   3 year fixed; small adjustment for another 3 years [with the expectation that the buyer will cash-out refi after year 3]
• Financials
  • 2016 Actuals: $57,000 NOI
  • Deal Price:  $549,000
  • Trailing 12-mo Cap Rate:  10.38%
  • Proforma Cap Rate [based on aforementioned Value-Add Cottage rehab assumption]:  12.23% 
  • Actuals -- Cash on Cash with 25% Down-Payment: 20%+    

Full disclosure: This is a killer deal -- we will likely purchase; taking back-up offers for optionality and to provide an opportunity to those who already invest in the Westminster / Carroll County area-- please have POF ready so we can qualify potential investors in a timely manner -- the contingency timelines are very tight right now.

John

[email protected] 

Hi K.B., 

What are the property's/deal's vitals?  If there is enough room in the deal you might try to get a waiver in place with the tenants to lift the rent control.

thanks

John