All Forum Posts by: Kenneth Garrett

@Kathleen McDowell

Let me start by saying, I'm not a coffee drinker. I never acquired a taste for it. I provide a Keurig for my guests and I have a coffee maker. The cost is fairly inexpensive. I did talk to coffee drinkers when I was furnishing my STR. Guests like having the choice.

@Raymond Kemp

Private lenders are individuals who lend money. There is no website or google way to find them. It takes networking at REIA meetings, meetups and real estate conferences. Private lenders on line are hard money lenders using the term private lending. It is not the same. I've met all of my private lenders at REIA meetings. I have met a few on BP, but I have not done any deals with them.

@Gaurav Nandola

I can definitely feel your pain.  When I buy properties I always conduct some rehab, of course that gets delayed when the units are occupied.  If you conduct rehabs correctly it eliminates a lot of the deferred maintenance.  It looks like you’ve learned a lot about investing in a short period of time.  Due diligence is so important when you are buying a property to make sure you have done your best.  The tenants not paying, was that an issue for the last landlord.  That is just as important.  It’s hard to find a good property management.  It may require multiple companies before you find the correct one.  They may need to contact you for approvals of expenses on repairs.  This depends on your agreement.  In general you may have a dollar value that allows them just to take care of it without contacting you.  Going back to the Non-paying tenants sounds like they need to be evicted.  Depends of the lease agreement and your state.

Should you sell the properties that’s hard to say without knowing the numbers.  If the properties cash flow enough I would ride it out.  There is no 100% passive investment.  There is always some involvement.  I personally would appreciate the communication from my pm until you can get things under control.  An email or two a day is very minimal.  Communication is the key just as in any walk of life.

Best of Luck.

@Robert Sims

Do not accept anything other than a wire or cashiers check.  That is just taking a big risk.  Even with friends and family I require a wire or cashiers check.  

@Abigail Cariaga

Navarre Beach is fantastic.  Everything is convenient there; restaurants, drinks, shopping etc.  Quieter beaches than in Destin.  

@Abigail Cariaga

I have a short term rental in Miramar Beach, but I recently moved near Navarre Beach. Navarre Beach is a great location with much less tourist activity then say Destin in the summer months.  This time of year it’s not very crowded.  It’s a very good choice.  

@Nick Wehrley

Spraying would be my first choice.  As far as power washing, buying the proper paint is key.  I would go to Sherwin Williams and ask them for  there recommendation. 

@Nick Wehrley

I've painted vinyl siding in the past and if the siding is in good condition and you use quality paint you can get 10 years out of it. The cost is much less then replacing the siding. For a BRRRR I think it's a good alternative, but the siding has to be in good condition.

On the buy down, your break even is 40 months, provided you are going to keep the property long term then I think it’s a good idea.  If you sell in three years from now then it’s a bit of a loss.  If the $4000 isn’t ear marked for another project and you don’t have any plans for it then I would go with it.  I always look at opportunity costs with my funds.

@JD Barrera

I get asked this all the time on my BRRRR projects when I am pulling money out. I'm not sure I understand the relevance either. The appraisal should reflect the value of the property. If I renovated it recently is that part of the calculation, I hope someone who is an appraiser can clear this up. When I look at the appraisals it might indicate the last time it was renovated, but I don't see how that effects value. I think it's more of the lender wanting to know as there are a number of rules that seem to come into play when you are refinancing a property and you didn't conduct a rehab.

@Rob Allen

I agree with @Michael Baum using a PM or even a hybrid is not worth it. I have a STR in the panhandle and managed it from Chicago until recently, I moved to Florida. Since I came here nothing has changed, I still manage remotely, have a good cleaning company who does some minor maintenance items. Just network to find a maintenance company. Most real estate agents or your cleaner can recommend maintenance people. I would evaluate the property and conduct any repairs in advance. When something breaks or goes down you need to respond immediately like a hotel, it can't wait like some LTR issues.