All Forum Posts by: Michael K Gallagher

@Charlene Byssainthe I'm not familiar with the ATL market, but it looks like you already have great advice on that realm in this thread, my only other point of observation and what I'd instantly want to check on is what are the local rules around licensing and taxes with an Air Bnb.  Here in my market we have to pay a separate line of taxes as well as go through a different registration process to do an air bnb.  So figuring out what the local rules are and how they impact your financials would be my biggest question.

@Jeff Gold I think this goes to the age old question of what do you want out of it? For me personally I'm a long term buy and hold investor, it just works with my personality better. So from your example above for a $350K property, for me to buy that property, assuming it was in a location I like to invest in and am familiar with, and lets say its a duplex because in my market you can still maybe get a duplex for that price thats in decent shape, I'm going to look to make sure that I have at least $100 per door pure cashflow after all my expenses and budgeting for expenses. At least in year 1, and if I can achieve that with what I consider conservative rent numbers then I'd pull the trigger. So I suppose that ends up being $2400 annually of pure cashflow so a .6% of the purchase price....but if I'm putting 20% down to purchase thats a 3.4% CoC return on my downpayment...I think I did that right...so yeah thats the way I shop when considering cashflow.

following this thread!  I'm also curious as to any good events or seminars to attend in 2022 in the space!

hey @Bridget Vasquez I'm not a wholesaler, but I am an agent and if you do have mortgage/liens/back taxes, most of these things will come up in a title search when you work with your title/escrow company to close.  I could be wrong here, so do your own due diligence but in my experience whoever is doing that work for you should be dispersing the proceeds appropriately. So to address your question, yes you should still be able to wholesale it but the question becomes are you offering enough to pay off those liens and mortgages to still make it a good deal for the seller.

As far as extra questions to ask them for your marketing or selling on the back end its always a good deal to put your mind in the place where a buyer you are selling to would be.  So the numbers are key.  Anyone can wholesale as you know, but what makes a good wholesaler in my opinion is the quality of the numbers and data they supply.  If you are looking to sell to the end investor make sure you can defend and provide data to support your evaluations.  This seems pretty simply but you'd be surprised how many people can't defend their claims as to what the numbers on a deal are.  This is especially true when selling a tenant occupied property.  

Good Luck!

Hey @Isaac Lopez I am not too familiar with your market but if you have not checked out a local small bank or even a credit union, they tend to have some of the best investor friendly options for cash outs, at least in my market.

Cheers and hope this helps, 

Michael

Hey @Parker Reid there are a bunch of apps out there that will due this for you.  Really all of them will work so a lot of it is personal preference.  I use Zillow for my own rentals as I don't have too many units yet and its a popular platform to search on in my area.  That way its one system from marketing all the way through screening and they even handle electronic payments for you.  The screening is free to you, and you only pay I think $9.99 a week to market the unit. So its not insanely robust but it worked great for me.  I also have used Hemlane to help my clients find tenants for their rentals, and that is a platform that is more expensive but has many more features than zillow, so it could be something to grow into depending on your goals. 

As a side note there are probably umpteen different postings on this topic in different forums all over BP so worth searching and seeing what comes up. Might also be worth checking out youtube as well.   

Cheers, 

Michael 

Hey @Devon Webster I think it really depends on your goals.  The long term by the unit rental will be the least amount of work for you.  But if the market rents for long term rentals don't support the returns you would like to see then I think exploring things like traveling nurse or furnished rentals are worth considering.  I'd also say that when you do rent by the room, parking becomes a real issue so ensure you have enough parking to support that.  Additionally I'd advise if you are curious about how it will work, and if you have 3 units to work with, why not try both options to see how you like it.  Have one unit as a long term traditional rental and then another unit as a rent by the room or furnished rental of some kind.  There really isn't a right or wrong here, it just depends on your goals, how much time you want to spend managing the units.  

I'd also say the layout of the units will have a lot to do with how successful the rent by the room method would be.  If you only have 1 bathroom in each unit my opinion is that gets tricky.  If you have a 2 bed 2 bath where each person could get their own bathroom...That to me is more viable.  But thats just speaking from my experience here in my market.

Keep us updated!

We just use Sherwin Williams Repose Grey in all of our rentals.  Standard flippers color, goes with essentially everything, and works well with a white ceiling in my book.  We don't differentiate between rooms, its just white ceilings, and repose grey walls throughout.  Not sure if that helps or hinders you, but we find it makes the standardization easy.

Cheers, 

Michael 

Hi @Ameen Lalani!  I have not personally worked with them but in my initial discussions with them I had a great experience with Park National Bank in downtown Newark OH.  They are a local bank and the person I spoke to said they keep all of their loans in house and service them.  Which I found really attractive personally.  I'd be happy to connect you with the gentlemen I spoke to if you'd like.  

Otherwise Telhio Credit Union would be another local bank I can personally recommend, but again I have not personally done a commercial deal with them.  I just do my own banking there and have had initial conversations with the loan officers.    

Calling all local business owners, operators, real estate investors, contractors, service providers and everyone in between.  This meetup is intended as a casual and relaxing environment to meet and network with other local entrepreneurs not necessarily in the real estate space.  We believe rising tides raise all ships and that our local network of businesses here in central OH are one of the best assets available to us. So come with questions, come with troubles and challenges, or come with new services to offer.  All are welcome.  Event starts at 6pm.  Email [email protected] with any questions.