All Forum Posts by: Josh Bowser

Hey Raja - you're probably running your numbers correctly. You're not going to show cashflow on a traditional LTR if you're putting 20-25% down in this environment. 

Many of our investors at our brokerage have pivoted to the rent by the room model through platforms such as homeroom or padsplit which is pretty prevalent across the south east and some other major metros.

Happy to chat specifics - feel free to reach out in dms or contact info in bio!

Hey Kiran - I have a friend who is a land broker who works the NE portion of the ATL suburbs. Would be happy to connect you two as he may have an idea who is looking for partners - please feel free to reach out in the dms.

Hey @Robert Taylor - @Michael Dumler nailed it. Rent by the room strategy through padsplit / homeroom is the only place our clients are able to find cashflow on a levered investment.

Hey Alba - first thing I would do is give your local municipalities a call and see what it takes to legally operate an STR in those areas.

I'd make sure you're able to run this strategy before diving into it any further.

In the event you are able to run an STR where your properties are, I'd consider hiring a property management company that is a strong operator. Letting the professionals do their thing should pay for itself over time and save you a lot of headache.

Rent by the room on Padsplit / Homeroom is killing it for clients on the cashflow side. Happy to chat specifics!

Hey Rohan - to answer your questions:

1. To my knowledge, there aren't much you can do WRT special assesments. However, it would be a good idea to get a list of special assessments within the last 5-10 years (if possible) to get an idea of what to expect.

2. When looking at condos to purchase - please, please, please take into account average days on market for rental listings & sales comps for that specific building. This will be your guide to determine what you should expect when it comes to renting these out.

Hey Jordan - if you're looking for some levered longer term holds, our clients are having success with the Padsplit model in the Atlanta metro which is commanding 2x-3x gross rents what a standard long term rental would bring in. Rent by the room strategy is the only thing I am seeing cashflow right now where tenants are also easy to come by.

If you're willing to put 40%+ down, current market conditions are providing an opportunity to buy some high quality turn-key rentals across the metro as well (Mainly seeing this in Cobb County).

Sounds like you guys can potentially bring your flipping in house which could reduce your costs and make your offers more competitive. Flow of 'good' flipping deals is pretty low on market and highly competitive. If you're looking for flips - I'd start building a network of wholesalers no matter what market you decide to go in. 

If you can raise while still keeping them slightly under market, then I would consider increasing rents to offset the increase in expenses. 

Easy to blame the tax man in situations like this

Hey @Wencheur Antoin - this is a pretty unique situation. Based off the other comments - it looks like you're trying to buy 1 deal a year with an FHA. Noble goal but you may run into cashflow issues right now with current rates so I'm not sure I'd be too focused on the next deal just right now.

I'd try to pick a solid area of the metro that has a lot of small multifamily. Lawrenceville area comes to mind as an area you should be able to find a decent amount of on market deal flow paired with good schools to avoid any issues with your kids moving school districts.

Hey Leon - are you heating the house with gas or electric? If electric, reach out to your provider to see if you can lock in a flat rate with them based off last years average. If that is doable, I'd just take that number and bake it into the rent to make it easy that way you can be sure to collect. It might be hard to collect those utility bills retroactively. 

We have flat rate electricity, but heat with a gas furnace.