All Forum Posts by: Loren Miner

I am in the same situation for a client. The first two appraisers have quit. We are hoping 3rd is the charm. 

It's hard everywhere you go. There isn't a cool undervalued place in the age of the internet where you can go and find sweet easy real estate deal. The house hacking deal you are looking to buy is in any market but usually, come with strings attached. You have to live far away, tough area, have an in with agents/wholesalers, find the deals yourself, been passed down a book of business, but most importantly work hard and creatively at it every day. The easiest way I say for new investors is to find somewhere like @Mark Sewell said outside of where everyone wants to live. I live and work in the 2nd ward/East end/Eado of Houston, about at 5 min train light rail ride to the city and stadiums. Most people who are selling property here are seeing serious returns. With that said they bought in the '80s and have waited 30 years for this moment. My advice is to bump up to 4-plex vs triplex (same loan both residential) and find somewhere where you want to live. Ultimately, if your in it for the long haul, anyplace you move to will work. I have friends in San Fran who are still buying at $700k selling for $900k 2 years later.

@Ryan Blake

Well, @ryanblake It was exciting! The property ended up going to auction through TENx. Turns out because it was previously on the market so long, we were the only bidders. TENx had changed the incremental bid amounts on the auction, mid-auction, to create more activity. Long story short. The property was expected to go for $2.2m, we ended up getting the property for $1.75m (+ TENx broker fee's) .... totaling about $1.85m when all said and done. 

Our client ended up dropping the deal as it was too much risk for him at this point, and honestly probably a little out of our scope for executing the deal. 

I think in the long run to buy the property across from the Toyota Center, and a park in downtown Houston, it would have been a great deal. Options included using it as student housing for the law firm across the street, restoring as a traditional apartment or going 50% Airbnb (two buildings), creating a "superstructure" on top. In the end, there was a lot of creative ways to make the deal work. 

Also, Camden is going to create a big mix-used center walking distance from this location, so if even a covered land play would work for the location if you have the bank roll. 

http://swamplot.com/crane-gets-airborne-above-the-lot-next-to-root-square-where-a-new-camden-tower-will-rise/2018-02-27/

Today it was recently sold to Fat properties who has about 10yrs more experience and sounds like they are going to do a great job on the building. 

http://swamplot.com/the-changes-coming-to-the-pre-...

However, still emotionally attached to the deal, especially since Houston is working on a hockey team, and they would be playing out of the arena across the street! 

@Sam Shueh Thank you for the insight and time to answer. I was 40-60% is what we had anticipated, the problem is I am having a hard time finding a whole building dedicated to airbnb. 

@Christopher BrainardThe property is located downtown Houston. 

Good point on condo conversion fee's which I was uncertain if it was market by market or general ballpark #'s that could be used. I was optimistically hoping it would be similar to if you were to use construction cost $/ft #'s to build. EX $10k per unit ...etc

Great question about the strategy. We plan on separating from the rest of the market based on the age of the building & product differentiation. We plan to do a vintage remodel for each unit.  We are not competing with Hotels, apartments, or other Airbnb. We are really seeking to offer an experience through the short term rental. We feel that the condo conversion would be an attractive option at an affordable price, to own a place to live downtown & give the future owner confidence they can use this place as a rental. 

Thanks for taking the time to answer

Here is a healthy modern day brainbuster. I am currently underwriting the following play -

Currently a 25-50 unit multi-family. Primetime location. No shortage of traffic. 

Renovated each unit

Convert to full-time Airbnb 

Exit plan - year #6 sell as condo conversion 

*Keeping it slightly vague for privacy purposes*

MY QUESTIONS - 

What vacancy rate do you run for short-term rentals? Has anyone run a large scale Airbnb? 

Expenses of condo conversions? 

Any other pitfalls I may be missing? 

I have done a fair amount of research on the subject, but feel the community would enjoy the challenge as it is not common practice! 

The whole community was flooded by Harvey. Wimbledon Champions Gardens - 77379

 The homes had about 4ft of water.

You have the opportunity to buy not one home, but a large chunk of the exclusive community of a lot of people are looking to sell.

Homes in area go from $245k-$450k

Call or message for more details & Comps.

Everything is NEGOTIABLE 

The home was flooded by Harvey. 

This is more a friend situation that I am trying to assist with. 

The whole community was flooded by Harvey. The home had about 4ft of water. 

You have the opportunity to buy not one home, but a large chunk of the exclusive community of a lot of people are looking to sell. 

The owner was on market at $245,000 with multiple offers the first week before the flood occurred. See online listing for previous info.

Call or message for more details & Comps.

Everything is NEGOTIABLE 

@Bukola O.  could you please send me your CPA's info! 

Thanks!