All Forum Posts by: Marcello Di Gerlando

We currently operate the highest grossing STR in Park county immediately adjacent to Summit. We have been working to expand our portfolio in the area and may have some insight to share that may or may help. I will PM you.

@Greg Dickerson

Thanks for the reply. In your experience would you recommend using permit consultants and including them on the team?

Respectfully.

Hi BP, I have a small build project in mind for some single family homes in one county. Can anyone suggest ideas that can help with getting permits approved and processed in the most efficient manner? 

I'm under the impression that there a firms or individuals that work as a go between developer and permit approval authorities, with the ability to expediate requests and approvals. If such folks exist what are they called?

I don't self manage so I can't speak to the pros and cons. I can only share my experience using Evolve.

We opened our 1st STR in Dec 2019. And chose Evolve for many of the same reasons you outlined. According to Airdna data our STR is the highest grossing STR in our market. I suspect that Evolves dynamic pricing algorithm is partly responsible. We are doing well and I anticipate continuing with Evolve for now. Things may change. By now you should understand what Evolve can and cannot do for you.

Evolve got us off the ground up and running hassle free. Their user friendly app and messaging service is my main interface with our STR.

What they can't do well is support our ground services. We used their network of supposedly vetted cleaners and it was a **** show each time. We now manage our own cleaners and maintenance. We furnished and rehabbed our place top to bottom. Both my wife and I have backgrounds in flipping single family homes and furnishing high end retail fashion stores so we never considered having a third party furnish our place. 

Use the Evolve network of services at your own risk. Good Luck.

If you can handle the risk and willing to learn the short term rental (STR) market, laws and ordinances in your area with a little luck and a lot of knowledge you may be able to squeeze into the STR arbitrage space.

Search around these forums and other resources to understand what this entails. Its not for everyone but some folks have had success in this space for very little upfront money. If this doesn't work for you then stick with plan 'A' , get more money and more knowledge. Good luck

@Dezim McCoy

I second @Mike De Lota posts. 

Definitely speak with a reputable real estate attorney, regardless of how you mange to secure the mortgage. The thought of 6 thinking emotional adults undertaking a newbie STR adventure is both exiting and scary. The chances of a scheme like this surviving the long term without a warm and fuzzy business contract is precisely 0.00000001% ish.

The mortgage part of this equation is only a small fraction of the over all picture you all need to consider. The list of nuances here are long and some offer considerable risk if not mitigated in a contract. @Mike De Lota mentioned a few business considerations you must hash out and put in black and white. 

I would also ask what exit strategies you have in mind? The likelihood of all partners wanting to hold the property in perpetuity is unrealistic. So? Sell in 3/5/10 years? Sell when market value reaches X relative to Y?  What if someone wants or needs to sell after the first year? Would you all be forced to sell or would someone have first right of refusal? Can one of your partners sell their stake to any old stranger? etc etc.

Exciting. lots to think about. Good luck.

Without the details getting to a cash on cash return wont be possible. Share the details and I'm sure lots of folks will pick it apart with feed back. Some STR investors use a 2% of purchase price rule of thumb to guess-timate if an STR will be profitable. EXAMPLE: $500,000 purchase price x 0.02 = $10,000 average monthly revenue. If you can get close to this rule of thumb it is worth doing the nitty-gritty of running your numbers and developing a proforma. Understand its only a rule of thumb. In some cases 2% is not enough and for others a smashing success. Understanding your expenses and potential income and the myriad of contingencies including capital expenses over time and projected exit must all be factored other wise you will be blowing in the wind.

I love Monmouth, one of my favorite places in the world! we are near Breckenridge in Colorado so our guests are looking for the same thing. 

Understanding your local ordinances is your first order of business. Check with the town and HOA to see if an STR is even feasible. Personally, I stay away from condos and HOAs to expensive and to risky.

In my personal experience I have had issues with septic. We got the septic report on the day of closing and found out the tank was cracked and needed to be changed.( the idea to inspect it was an after thought....so glad I did it) The estimate came back at $14k. We set aside $20k at closing in escrow. Be advised if you need a new leach field you can double your expense at least.

One way to think about the septic. You will have to have it pumped anyway! Do it now before you close or do it after you close. I recommend being there during the inspection. Inspection is simply a pump and a look.

As for wells. I have no personal experience in repairs and I've never had an issue. No idea what a new one or an inspection might cost for a well.

Good luck.

@Sue Hough

If you want to find out if your development is in a HUBzone plug in the address here. https://maps.certify.sba.gov/h...

@Sue Hough

When you say opportunity zone are you referring to a HUBzone? I would suggest reaching out to one of the local PTAC offices. PTAC offices are all over the country and I believe they are a public private partnership. Their mission is to assist small business with government contracts and business programs. PTAC are the experts in HUBzone developments and have the resources to help developers navigate the nuances. I did a quick google search in Tennessee and found this link below. I briefly worked with a developer on a HUBzone project and the benefits seemed endless however there are plenty of hoops to jump through. Hope this helps.

https://www.aptac-us.org/hubzone/