All Forum Posts by: Luke G.

@Symone Gordon he's making the same prediction 1000s of other people have also made on this site in the last 5 years.  Fun fact though is none of them have been right.  The current market is not looking like 2008, inflation is rampant, interest rates are as low as they ever have been, and banks aren't giving out a jumbo loan to every person with a pulse; we may be due a correction or a plateau but really nobody knows when that's happening (even if they tell you they do).  Run your numbers and buy what you're comfortable with, if it takes a step back make sure you can survive it until it recovers.

Looking at your profile it looks like your chiropractic business is doing well.  I'm guessing you're self-employed, the bank will likely want 2 years of those tax returns to show that you're making good money which I'm guessing you have if your stock piling 15k/month (congrats!).  Just something to think about. 

I'm a DPT and have begun transitioning from full time clinician to RE full-time.  It definitely can be done, I've actually gotten 2 deals from patients that I had come to know who liked talking about real estate; as well as found my local contractor via this route as well.  Sometimes working in the rehab setting you get an advantage with spending more time with patients than an MD, I don't bring up that I buy RE with every patient, but if the conversation naturally flows that way and they talk about it it can leave a nice window.  

I've used hospitable and haven't had any issues.  The couple small ones I have had the customer service is pretty spot on.  

4400 square foot cabin on the south shore of Lake Superior purchased in July 2020. Purchase price was 325k, I put 40k into it with renovations and re-appraisal came in at 495k in December of 2020, which opened up a LOC for 155k that I've used to purchase another 800k worth of LTR properties. I recently had a wholesaler offer me 600k for it and believe I could sell it for close to 700k at this point.

But I'm just going to let it continue to print money. Gross income this year is at 85k, next year I should be well over 100k as 1/2 the summer is already booked at 650+night. I will have netted close to 40k on it this year which will end up making it a COC return of over 50% in year one. I will be purchasing another in the spring remotely. I honestly got lucky on this one, I purchased a large property that had been on the market for a long time at the peak of the covid scare where markets could have gone either way. I doubt I will find the same COC numbers again. I have no plans to sell this property, as I have fixed 30 year financing at 3% on it. I will continue to use the LOC on it for additional purchases.

As others have said just tell them. My last closing I had my commercial banker wire it directly from HELOC with a response, "I wish more people actually used HELOC's in this way instead of buying a bigger boat." Both of my HELOC's I made it clear I was using it to buy more RE and neither said boo.

1.)  There's a big scary dog out side that has locked us in the house and we can't leave.  Proceeds to send me a video of a golden retriever puppy at the door wagging his tail.

2.) Same guest.  You have bedbugs, we found several last night.  I ask for pictures of the bugs or bites from them.  He sends me a pic of a tick.  Cabin's in northern wisconsin, I explain the difference between a tick and a bed bug.

Hey Matt- I own a large lake superior cabin that I do well on, this winter I'm considering buying another either local or a different state. A few big things to look for for WI are as follows...Are STR's allowed on that lake? some lake associations have a no STR clause. Is the water clean and what is the lot like? Sandy shorelines, great views, and clean water go a long ways. A lot of WI lakes get an algae bloom that makes 1/2 the summer basically unswimmable. Is it close to attractions...snowmobile trails in the winter, fishing in the summer, close to the dells etc. You need to keep in mind logistics for certain areas can be tough such as finding cleaners. Hayward for example is a vacationers paradise, but it can be tough to find people to help. Taxes can also be steep, I pay close to 8k/year for mine.

Areas of the top of my head that are more popular than most would be Bayfield area, Door County, Hayward, or three lakes/Vilas county lake systems.  

Use @Luke Carl's enemy method.  It takes some time, but it's very simple.  

I was thinking the same thing when we bought ours, not necessarily retirement but a spot to take our family for the occasional weekend.  Was hoping it would break even or kick off a little cash flow and we'd get a cool cabin for cheap basically.  It's ended up being one of my better deals, it re-appraised for close to 200k over what we paid for it and I only put about 40k into it and it should cash flow close to 40k this year as well.  

@Jay Hinrichs it's tough when you have a unicorn to accurately price it, Pricelabs helps (only 20 bucks/month).  I have a monstrous cabin on Lake superior that can sleep 18 and there were no real "comps" to compare prices to.  I'm through my first year and I was low on what I could charge, but Pricelabs let's you tweek it pretty efficiently by season.  They give a rough "base" price what they think it should be and it changes accordingly with the season's and demand for the area.  When I ran my analysis I was about 200/night lower than what I probably should have been so the first booking with pricelabs paid for about 3 years worth of its subscription.

Everything else can be pretty well automated, it takes me about 10 minutes a week to manage mine now that everything is set up.  There are others on here who probably have it more efficient than mine, but I use a couple different apps that make my life easier.  Feel free to PM with any specific questions.   

You'll draw from Seattle, I've had people stay from a couple different countries and about a dozen different states, but most are from Minneapolis/St.Paul which is a 3.5 hour drive.