All Forum Posts by: John Litz

Same criteria as always. Learn the market so you know the difference between average, good and great deals. Get your buy box down, remove all war zones from consideration, I personally look for 2-4 units for fixed rate debt. Understand what it will take to make rent ready. Know what is market rate for rents as well as what section 8 pays. Always analyze for long term numbers but in the back of my mind I look to see if it will be a good fit for possible MTR or STR. I live in an expensive area so nothing usually will even make its own mortgage payment at the listed or close to listed. You have to figure out which ones you like the best and put out an offer that actually makes sense. Disrespectful offers- no alligators ever!!!

All local laws apply but i would think you are illegally operating a multifamily home that has not been permitted. To get into compliance, if it is even possible, you will need to speak to the city planning department to see if the property is eligible for rezoning, a special use permit, a guest quarters, or an ADU. It can not be appraised correctly until it is legal permitted. So no lenders will touch it. Hope you figure it all out but getting in compliance is the first step.

Rates will need to drop at least another point before I will even consider refi. More in a stabilize/optimize time for my properties. If I find a great deal of course I will jump but that is always the case regardless of rates

It could be possible to change debt structure from 6 individual loans into a single portfolio loan allowing you to pull a larger part of the equity in one chunk and still stay under 65% LTV.

Second suggestion is increasing the income generated by doing mid or short term rental strategies. It’s more work for sure but helps build faster. 

Third suggestion is find a local partner that handles the lending side of things (to avoid the foreign limitations) while you handle all management and repairs part or the deal. 

Best of luck

In Reno Nv demand remains strong, we are over saturated as so many are. However being a great operator is still working well. The arbitrage crowd that watches pod casts saying how cheap and easy it is continue to try and fail only to sell off all that furniture they just bought. New folks also struggle looking for easy riches. STR is a lot of work but can get more in profits. LTR is so much easier but usually a lot less cash flow as well

First thing you should do is go the the planning department of your city to find out if your zoning supports what your trying to do

Either rent as a single property for both units or find a way to separate with fencing. People will always have issue with shared amenities in a short term rental house. They don’t have issue at hotel for gym, pool, hot tub but a house has a different mind set of privacy. 

You may need help with the listing before throwing in the towel. My market is very over saturated. However after watching many folks on YouTube and following their advice I have since my first month been able to pay all the bills with bookings. Last month was my biggest month so far. I have been open only 1 year. From your post it sounds like you reused all of the current furniture. If it’s dated or just not an exciting looking theme that could be your first issue. When I do market research of other properties in my area I look at their theme. I don’t see any bad operators. All the properties are nice and well put together. However many of them look like what you get at a hotel. Nice but boring. Get some creative juices flowing and find a niche that you think people will connect with and lean into that theme

I love doing them type of stuff just to stand out. I do market research all the time just to check out competition. Everyone has nice homes but most are kinda boring like a hotel room. I want to give some wow factor lol

Excellent information. This is the quantifiable data that operators need to pull the trigger on buying the high dollar items. So many folks complain about low bookings but won’t do the research to see all of the things they can do to be a better operator. They all just want the easy button. This stuff is not easy but it is lucrative when done correctly. I am building a downstairs 1 bed 1 bath unit that will not have yard, bbq, hot tub, fire pit or anything else for outside amenities. It will be direct competition with hotels. So I will be leaning heavily on design to create a unique experience that can not be had at any hotel. In addition many of the decorations will be Interactive to increase the fun factor. This unit will be 100% cash flow since the upstairs 3 bed 2 bath unit already pays for all property expenses. Thank you for your post.