All Forum Posts by: Michael Le

We have a B+ property in a good area but our property manager had liability concerns about putting AirBnB next to long term tenants. Also, as Greg mentioned, some lenders have covenants now that leases shouldn't be less than 30 days so that would cause you to break your covenants to do AirBnB. But yes, the money can be very good. I'm still interested in trying to figure it out for my own property. In the end we compromised and have 4 corporate units which get us double rent.

Ben, on popular streaming platforms out there (Twitch, etc) there are ways for people to show monetary approval of the content provided. Usually it is in the form of a 'subscription' to that specific content provider or a way show more enthusiastic 'thumbs up' or other things. Not all of it translates to a business platform, such as BP, but I think there could some lessons learned from that. Patreon is another service that is popular and allows artists and musicians to make a living based on the donations of donors. It'd be an interesting concept if BP every wants to go down that path. Could entice more people to create content than would otherwise be inclined to without incentive.

Hi Brian, my follow-up question to you is... in the current market where it is hard to find deals, does it make more sense to just refinance and lock in most of those gains, and then hold the property and cash flow.

Come join @Juan Vargas and myself for this month's meetup where Josh Benporat of Madison Title will be joining us! He will be discussing why it's very important to have not just any title company, but the correct title company on your team and how his team at Madison has assisted clients close on transactions where other title companies could not.

As always, we will have time to network and discuss multifamily investing before and after the presentation. See you there!

P.S. Don't forget your business cards!

At a high level what they say is correct but that doesn't mean it is right for your property. If you're building in the urban core where it will be mainly younger, single tenants, then having 2-3 BRs could be detrimental.

By private loans I assume you mean private money lenders for single family investments. In this case there are a couple of reasons:

• The private money lenders generally lend based off 60-70% of the after repair value of the property minus any repair costs... not 100%. So not too different than a bank. This is so they could fire sale the property and get their money back if need be.
• And to follow-up with the above point, SFR is more liquid and they could in a few short weeks sell the property off quickly if they need. You can't do that with large multifamily.

As you mention, the recapture happens at the time of sale. If you refinance instead then you don't have to yet. When you recapture it will be at 25% rate which is likely lower than your income tax rate. So it's still very much worth it to do since you're delaying when you have to pay and you're paying at a lower rate. And if you happen to pick up another property the same year then you can offset those gains and kick the can down the road some more.

The COC is calculated based on the amount of money you have in the deal. So if they return your money in a refinance then you have less of that money still left in the deal and your COC jumps.

We used to have one very active lady on BP who's answer to everything was DSTs. Are you the new industry rep? Your post history indicates that's all you talk about.