All Forum Posts by: Jeffery Wilen

People, You can download the spreadsheet from @Michael Ealy on his website www.nassauinvest.com .  Do some of the legwork rather yourself rather than just asking to be handed everything.

Not trying to be a jerk, I know Michael offered to email it, but if you want to be successful in this business you need to put in the work.  It shows right on his post that its a free download.

Just giving out some tough love advice...

No need for VPN, AirBnB guestS are really only looking for Wifi. Just change the admin passwords if you’re concerned about security.

Cable router and supply them with WiFi name & password, we’ve never had any issues. 

There is a national building code, but it’s a guideline rather than law throughout the US. The specifics required will definitely dependent on the local jurisdiction.

I know for certain sprinkler requirements vary by locations as do some electrical codes. Often it’s different from county to county.

Check your local codes and go for it if it is allowed and pencils out. 

No discrimination concerns, your listing states min age of 25.  Note, rental car companies do this every day without being discriminatory. 
AirBnB is clear that the person making the reservation must stay there. If the mother told you she wouldn’t be staying there, it is a clear violation of AirBnB policy. Have AirBnB cancel the reservation for this violation.

BTW all, pretty sure it’s not a group of ages 7-19, it (7) Nineteen year old individuals. 

What’s your plan for cleaning between guests? 

Cap rate uses NOI.

NOI does NOT include principle, interest, depreciation, or revenue based taxes. It does include maintenance, capital improvements, management, insurance and property taxes. If it's a proforma calculation it's would include vacancy. If it's an actual NOI, it doesn't include vacancy as your gross revenue would have adjusted for any vacancy you had.

Agree with all that was said so far. Bedrooms are also required to have a closet in our jurisdiction.

Usually, to me, no permit indicates a homeowner that did it themselves, you haven’t really become a professional level investor or, you’re just a shady person. 

@Nick N.

It involves plenty of assumptions and estimations, just estimate all the items from which the NOI is calculated. Depending on whether you're the buyer or the seller determines if you make conservative or aggressive assumptions. Using local market info will make for more accurate assumptions. Some items are easy, you can get taxes for every property, get a quote for insurance and that number is solid. Others like vacancy, repair costs involved more research, but all of the costs can be estimated.

Zoning and financing will not be related. Small multi-family (2-4), as you stated are financed like a single family house. When it comes to zoning, it’s an entirely different situation. The local jurisdiction determine what the zoning will be for a particular property. Some residential zoning allows a multi-family, some do not. It depends on the density target and other factors that the zoning officials evaluate. As with all local jurisdiction regulations, this can be all over the map. 

Second everyone’s comments about using your cleaner and having a locked closet for extra supplies. That’s what we’re doing as well. They last is know when it’s getting low and we purchase more supplies for them. Fortunately we also have a multi family LTR close to our STRs where we have an even larger stocking locked closet. We can purchase with larger volume discount and store it there. We use our cleaners to do the common areas there, so they have access and a reason to visit it once a month anyway. Key is finding a great cleaner and working it out with them.