All Forum Posts by: Kenneth Garrett

@Dave Tov

I agree with @John Underwood about using social media as a means to find a cleaner. If you are at your property on a Saturday (which is typically check in and check out day), you'll see many cleaners working at other STR's go talk to them.

@Michael Yi

In general kitchens and bathrooms get the best return. I like to buy 2 bedroom houses that have enough square footage to add a third bedroom or additional bath. Adding a bedroom is relatively basic, provided you are not messing with any structural walls. This market is tough, but investors are still flipping. Be careful of using an aggressive ARV. Depending on your market, prices are still coming done, whereby at the time you finish, your ARV might be $5000-$10,000 less than what you projected. It's all market driven. When we have an unstable housing economy you need to be very conservative on your numbers.

@Zach Rozmarniewicz

The private lending documents are the same as a traditional mortgage company.  You have a mortgage or deed of trust (depends on your state) and a promissory note which describes the terms.  The terms are how much you borrow, the borrower and lender, the length of time, interest rate, default rate, when the loan and interest are paid back etc.  Use a title company to forward funds to and to handle the closing.  I always use an attorney to draft my documents or at least review them.

@Aaron Heers

You can use rentometer , Zillow, the MLS and other sources to determine the market rent. I use Zillow for currently what's on the market and use rentometer for historical data. Of course, if you have a real estate agent/broker they can run rental numbers for you. Depends on your area. In my area, the MLS isn't used that much for rental properties so I use the other resources.

@George Knetzger

Here is an example:

Purchase $100,000 

Rehab $25,000

ARV $165,000

Your cost are $125,000 plus utilities, property taxes, cost of money, if applicable, and closing costs. If you figure closing cost at 12% your cost is $19,800 plus $2000 for utilities, property tax, etc, $21,800.

In theory your at $165,000 -146,800= $18,200 profit.  Not a home run, but I’ve done these deals like this if you can turn it around in 90 - 120 days. It might be worth it.  You need to be really accurate with these types of small profits.

@Kyle Evans

Airbnb pays the state tax on your behalf, but not the county tax in Okaloosa.  

@Nathan Leger

New construction is not really a BRRRR. You're just buying a rental property. In general, a BRRRR is forcing equity through the rehab. That doesn't really happen in new construction. Most new construction is cost prohibitive as a rental. The construction cost are just to high, unless you're getting a smoking deal.

@Reginald R Cloutier Jr

In order to answer your question or to do the research you need to know specifically what jurisdiction the property is in. County and or city or both. Then you can go online or contact them for specific information. There is no state requirement other then paying STR/Hotel tax.

I listened to a couple podcast with Justin Stamper (Zombie House Flipping) on the A&E network and also Ken Corsini (Flip or Flop Atlanta) on HGTV.  They both acknowledge that when they put up the cost numbers; purchase, rehab and profit they are told to leave out the cost of money.  If they borrowed Hard Money or used Private Money or other costs those are not in the numbers.   

I don’t like the unrealistic portion of the numbers and length of time.  Sometimes you can figure the length of time when they show a beautiful sunny day on day 1 and a winters day on the open house day.  They did agree it’s a show and for the most part rehabbing is boring so they have to create drama to make it interesting for the average viewer.  I remember a Zombie show where they had all these snakes in the house that came in overnight.  Of course the window is left open or the alligator snapping turtle.  They need to create drama for the cameras.  Those of us who actually flip know the difference and it can be annoying. Lets face it, it’s the unreality of reality TV.

 Yes, this was in Florida and I was living in Illinois.