All Forum Posts by: Kenneth Garrett

@Jodie DeMott

I self manage 950 miles away.  If you want to make any kind of money, you will need to self manage.  Hiring a property manager will take most if not all of your profit.  Hire a great cleaning company and a handyman and you should be good to go.

@Preston Gealy

If the $1600 is going to kill the deal then of course try to negotiate with the seller.  $1600 is not a lot money if this is a great deal.  In my mind, if the profit on the flip would have been 30K and it’s reduced to $28,400 that’s still a good profit for you.  Percentage wise it’s about a 5% hit.  I would proceed without the sellers participation if the numbers work.  I ask yourself, is there a better deal out there that you can acquire.  Deals are difficult to find in this economy.

@Daniel Mock

Foundation wall looks broken.  Doesn’t mean run away.  You should get an estimate from a structural company before moving forward.  Sounds like the movement of the building is fairly significant if the roof is concave.  Typically a foundation or pier has failed when the floor is out of level.  You have walls cracking and a concave roof.  Does not sound good.  I would be worried about piping being cracked as well as other trades.  I have bought properties with structural damage, but I always have an expert come to see what number I’m looking at.

@Christopher Johlfs

You need to use a mortgage or deed of trust depending on your state and a note.  The private lender is the same as a bank.  Have your attorney draft up the documents and the mortgage or deed gets recorded.  You need to protect your private lender as well as yourself.

@Derek Nemec

I have used commercial financing for years. I use multiple different lenders. Some refer to it as DSCR loans. Approval is based on the ratio of expenses to income of the property. Usually 25% down, interest rate is higher, about 1%, but no limit on the number of buildings. You'll need to own it in a LLC or other entity. Your company owns the property not you.

@Steve Knipping

The time is very minimal. I self manage my LTR's and provided you maintain your properties, I get very few LTR rental calls. STR is more work, but once things are in place; cleaners and handyman it's only responding to inquiries. I use instant booking which reduces time. You have to keep up on supplies. I would say if I spend more than 30 minutes a week that would be a lot of time. I am an out of state STR (Beach Town). The revenue compared to LTR is incredible.

@Josh Myrick

I’m in the Destin area, not to far away.  I agree with @Account Closed on the research.  I use 50% occupancy as my rate.  It’s conservative and anything over is a bonus.  Based on your competition and pricing you should actually be closer to 70%.   it will vary a bit from year to year.  I also self manage which helps with profitability.

@Jorge Martinez

I have done plenty of BRRRR's and I have never had to wait a year before refinancing. I would check with local lenders. 6 months is typical for residential loans, but you can use commercial loans (some people refer to them as DSCR) and there is no waiting. Not sure if your referring to your financial advisor when you say finance guy, but like everything only take advise from people who have actually used the strategy.

@Alex Reinsma

I use a ring door bell, Schlage encode for door codes (I can set a new code each guests, cleaners, handyman, etc), Wi-Fi thermostat, etc.  Use the VRBO and Airbnb platforms for all communication with guests in case there is a problem.

@Jeremy Schrader

Pictures and minimum nights go hand in hand.  Hire a professional photographer.  That’s going to be your first impression after guests are searching for there specific dates.  5 bedroom with a private pool; yes 120K or better seems realistic.  I provide an umbrella and two chairs on the beach for my guests.  It’s a nice additional feature and it’s right at the private beach entrance.  Definitely worth the money.