All Forum Posts by: Jeffery Wilen

@Ryan Murdock

Ryan,

The most effective way to accomplish this on Airbnb is list it without any availability and book with approval only. You then make it available for the window that your approved guests desire. It’s a rather cumbersome work around, but does work. Those guests (and you) would also have to pay the Airbnb fees. On the plus side they would collect and submit the lodging taxes for you (depending on jurisdiction.) For me, that’s one of the reasons I prefer Airbnb is not having to manage the lodging taxes. I’m not familiar with other sites at this time.

Bought a duplex that needed complete gut rehab for an LTR. After getting about half way through the rehab we realized location was ideal for STR, walking distance to water, shops and restaurants. Found great cleaner and maintenance people and it's been a home run. Peak season we net 3x LTR and off season we net 1.5x LTR.

@Nik Moushon

What you're looking to do is really a furnished LTR, not an STR. As you mentioned, anything over 30 days is subject to Landlord/tenant laws, not hospitality laws. You'll need to have lease contracts with wording for furniture. You're leases would typically be 90 or 180 day rather than 1 year. But that would depend on your tenant's contract with their employer.

Unless it’s a multi family property with 5 or more units, the valuation of the property is entirely based upon comparable properties not on income. 5+ units is a commercial property and the value is then based on net income and the market cap rate for comparable properties in the area. 

@Patrick Gibson

You certainly can do a BRRRR on a commercial multi-family. As mentioned above, it will need to be a commercial loan. As such, most of the qualification and underwriting will be based on the performance of the building. You will need rent rolls, expenses, etc.. to get a long term loan after the rehab. You have to get tenants in place before refinancing.

We are in the middle of doing the same thing on 7 unit building.  We’re about half way there after 8 months. We’ll wait until all units are done, as that will give us better numbers for the bank as our revenue will have increased nearly 40% giving us the ability to pull more cash out. FYI, we used cash to purchase and a hard money lender for the rehab funds. 

@Bjorn Ahlblad

What you can do with rents totally depends on where the building is for both laws and demand. For example, we can raise the rents in our building as high as we wish legally. The market supports a 40% increase.  Other locations certainly have laws that limit increases. 

@Derrick U.

You’ll get better replies if you run the BP calculators using your assumptions and post that info. It gives us a lot more upon which to base our opinions. 

I’m inclined to agree with @Bjorn Ahlblad price is too high for the gross rent listed especially in a C class neighborhood unless you have extraordinarily low expenses. 

@Tommy Kerwick Jr.

Yes, we currently have both STR and affordable LTR rentals in MD. Close to I95 between Philadelphia and Baltimore. Send me a message if you want to know more.

We’re in MD on the Chesapeake. 

@Jay Dang

Jay, Exactly what we're planning to do.  Space upstairs will make a great master suite and adjacent smaller bedroom.

Investment Info:

Single-family residence fix & flip investment in North East.

Purchase price: $85,000

2Br/2Ba 1,700 sqft needs 60,000 in renovation. Was appraised for an ARV of $258,000.

What made you interested in investing in this type of deal?

Property is near other investments. Will be a good BRRR if we decide not to sell.

How did you find this deal and how did you negotiate it?

Property was a foreclosure, dealt with the bank's agent.

How did you finance this deal?

20% down & hard money for balance.

How did you add value to the deal?

Renovating kitchen and master suite for functionality.

What was the outcome?

Still underway.