All Forum Posts by: Kenneth Garrett

@Jeremy Horton

It’s best to work with the neighbor.  You are correct, in theory you can cut anything that overhangs your property line, except killing the tree that you do not own.  There have been a few litigation cases like yours where a neighbor trimmed the tree in such a way it killed the tree even though it wasn’t on there property.   Approach the neighbor with proper decorum and hopefully you can work it out.

@Alec Khlebopros

I'm all about the beach in Florida. You don't need to be on the beach, but within walking distance is ok. There are many HOA's here. It's actually a challenge to find properties with out them. The economy is driven by vacationers so rules outlawing STR is not very likely. I agree check the HOA rules to make sure there aren't any restrictions. I'm in a gated community. Yes the HOA rules at times are a pain, but overall my experience has been mostly positive. Do your homework.

@Kevin McGovern

That’s a hefty tax for sure.  Even though your competition doesn’t disclose their license number doesn’t mean they’re not licensed.  You probably could request through the FOIA (Freedom of Information Act) a copy of who is licensed.  They might redact the names, but it should reveal the addresses to confirm who is licensed. Then you can decide if you wanted to turn them in, find out their process of finding out illegal operators or just move on.  In my home town, code enforcement goes on to Airbnb and VRBO to see if people are licensed.  They may do the same.

@Robert Saulnier

So septic fields are designed based on the number of bedrooms.  Has nothing to do with bathrooms as many people think.  Creating a bunk area which is not really a bedroom is probably a loophole in the system of septic designs.  By definition, a bedroom has a closet.  I am assuming no closet exists as this bunk room is sort of carved out.  The more people, the more it taxes your septic.  If you think about, when you have a large party at your house and you’re on septic, the system doesn’t have a problem.  Long term who knows.

@Briana Smith

When I started I used Airdna as my guide for my area.  I used 50% occupancy as my metric to be on the conservative side.  Be careful of using 2021 or 2022 as your guide.  I used 2019 and it was right on.  I like to use very conservative numbers, if it ends up being 60%-75% occupancy then it’s a bonus for me.  I don’t use month to month, I use the annual income for the year.  Month to month varies every year.  Some months are fantastic one year and the next year might be just so so.

@Jazmine Menders

As @John Underwood has mentioned an LLC is only for asset protection and anonymity. It does nothing to save on taxes. When you are in business and have a rental property you can take advantage of the mortgage interest, property tax and depreciation. You do not need an LLC for these. Even in your own name provides the same tax advantages. Keep track of all your expenses.

@Michael A.

BRRRR and Flipping have very similar qualities. Each requires a rehab. Each investor seems to have their own philosophy on what kind of rehab a BRRRR gets versus a flip. I've done many of each. I always BRRRR's to the same degree as a flip. It provided many benefits to me. It provided an additional exit strategy if I decided to flip the property instead of renting it. It brought a higher ARV, better tenants, higher rents and much less maintenance issues.

A flip provides a lump some of cash. A BRRRR provides long term wealth for generations. You will benefit from BRRRR'g way beyond a flip. The tax benefits alone provide a much better return in the long run; mortgage interest, property tax and depreciation. When you add all those together and include profit. The BRRRR beats flipping everyday. It's just a boring method to become rich. There are no HGTV shows about BRRRR'g, it's not sexy. It just works if you stick it out.

@Kiko Mattoso

Your first STR should cover its own mortgage payment and it's other expenses. There should be profit left over. Your 2nd STR should do the same thing. Your W-2 should not be covering your investment expenses unless you meant your DTI is to high.

@Arjun Raman

You have to check the zoning regulations to make sure a group home is allowed. Group homes are a hotly debated topic. There are many variations of them rehab facilities for drug dependent individuals and of course senior housing to mention a couple. Senior housing has many variations. Nursing care or just senior housing. Assisted living facilities in general are three parts; senior living, assisted living where the individual needs some assistance and then full assistance as in dementia areas. Typically dementia is not allowed in a SFH, but you need to check the regulations. Is there an operator to run the facility? Are they licensed? Many questions that need to be answered.

@Charles Stubblebine

Raising rent should be based on the market.  I take a different approach when raising rent.  I always look at market rent, higher cost to me and what the impact to the tenant is going to be.  What I mean about impact to the tenant is if they don’t stay.  Every property does not need to be at market rent.  You need to weigh in the cost of replacing a tenant, how long it will be vacant and the cost of repairs.  Of course this is market driven as well.  If the cost to repair your unit to get it rent ready is $3000 and the total length of vacancy is 60 days, then you are down $5000 if rent is $1000 a month.  Raising rent in increments of $100 and keeping a good tenant is worth more than jumping a significant amount.  You should take all factors into consideration.

Best of Luck.