All Forum Posts by: Mike Harding

@Drew Bursey

Don’t be afraid to write an offer because of how you think it may come across. Do what works for you. If you have an agent that is willing to take the time to write it up I would say go for it and expect to get rejected or countered. Expect that in a tough market it may take many offers before one gets accepted. They may counter to a # that puts you to a tough decision you never know what the other side is thinking. They may be a day away from a price reduction anyways. When I am selling I never reject an offer that comes in unless I have another better offer in hand. I will always counter to what makes sense for me, I have been surprised by “lowball” offers that then are willing to accept my close to asking counter.

I had an offer of 100k accepted when they were listed for 159k on MLS, I am pretty sure this is my lowest accepted deal and it is one of the worst deals I have bought in long while. List price doesn't always equal market value. You could pay over asking and make a great buy.

Good Luck to you! it’s a numbers game, if you get every offer you write accept, you are offer way too much.

One month into rehab. Trash out and demo is done working on getting it out back together. Only slightly behind schedule and over budget. 

I have been flipping for 7 years and done 60+ homes but this will be my first Vacation Rental. I am pretty busy between family and work as it is but I am mostly curious about the pros and cons of self managing vs full service management from some of you folks that have experience with it. The house is in South Lake Tahoe which is a great market for vacation rentals. The house is zoned commercial which is rare and means that I can get the permit from the city. South Lake just passed a bill that heavily restricts short term rentals, very limited new permits and most existing are getting shut out in 2021(if the bill doesn't get overturned).

I met a guy playing poker the other night that told me that he owns 10 short term rentals spread out around the country, works a full time job and self manages. I wasn't able to get into too much detail at the poker table but he said his wife and him handle the bookings and that a reliable cleaner and handyman is all you really need. That vrbo and airbnb is enough to get plenty of bookings and that there platforms ingrate with each other. We have a mutual friend which makes his story a bit more reliable but I need your help to figure out if he was bluffing.

Vacasa was the front runner of the management companies that I looked into. They charge 35% but my point of contact said he could get me 30%. I like the idea of not having to do anything but seems quite expensive. They also say that they are on 20+ sites and use dynamic pricing to maximize number of bookings.

I got a really good deal on the home because of a problem tenant/squatter. I am just met the sheriff there last week and was able to get in and start work.  it is currently a 2/1 that I am going to make into a 3/2 by taking out a large wood burning fireplace, shrinking the closets and moving the laundry into the garage.  I am thinking I will add a hot tub and a small back patio as well.   I will put in the life-proof flooring throughout, new kitchen and bathrooms.   I am going to put in new windows.  Trying to balance budget with durability and efficiency.  

Thanks for your help!

I have been flipping for 7 years and done 60+ homes but this will be my first Vacation Rental.  I am pretty busy between family and work as it is but I am mostly curious about the pros and cons of self managing vs full service management from some of you folks that have experience with it.   The house is in South Lake Tahoe which is a great market for vacation rentals.  The house is zoned commercial which is rare and means that I can get the permit from the city.  South Lake just passed a bill that heavily restricts short term rentals, very limited new permits and most existing are getting shut out in 2021(if the bill doesn't get overturned).

I met a guy playing poker the other night that told me that he owns 10 short term rentals spread out around the country, works a full time job and self manages.  I wasn't able to get into too much detail at the poker table but he said his wife and him handle the bookings and that a reliable cleaner and handyman is all you really need. That vrbo and airbnb is enough to get plenty of bookings and that there platforms ingrate with each other.  We have a mutual friend which makes his story a bit more reliable but I need your help to figure out if he was bluffing.  

Vacasa was the front runner of the management companies that I looked into.  They charge 35% but my point of contact said he could get me 30%.    I like the idea of not having to do anything but seems quite expensive.  They also say that they are on 20+ sites and use dynamic pricing to maximize number of bookings.    

I got a really good deal on the home because of a problem tenant/squatter.  I am meeting the sheriff at the property Wednesday to finally get keys(I bought it in Feb).  Any improvements that can make a big difference for bookings?  I am thinking of adding a hot tub.  And keeping everything else pretty Vanilla just kinda a low end flip with some reliable flooring.   It is currently a 2 bed 1 bath but once I get inside I am going to look at adding a 2nd bathroom.  

Thanks for your help!

thanks guys, kinda what I thought.  anyone know where you could find what the national average cap rate for class a, b and c? or how to find that info for specific markets?  I am looking at a purchase price of 1 million or less and trying to decide if it is better to get more doors in a less desirable market or get a better building with less doors but be in a more desirable market...

I am a flipper and I am looking down the road thinking about buying an apartment building.  I am a newbie to the apartment building world and just starting to look at deals, being a flipper I am drawn to value add deals but not totally hammered.  I was looking on loop net and saw a 52 unit building advertising a 30 cap.  Would this fall into the too good to be true category? When looking at an Apod are there signs that they have fudged the numbers?  

thanks for the help

I prefer to spend a bit more and hire a GC.  I have done enough deals with current GC that I can be pretty much completely hands off.  We have discussed color schemes, fixtures,where to get appliances, how I like tile to be laid, ect...  We walk the property once at the start of the job and for small flips I don't come back till it is done.  Bigger projects I check on every other week. I figure pay roughly 20% more than if I were to manage the project.  Having several going at once this is clearly the only option for me, even I got back down to one at a time I think I would still hire my current GC.  It can be some work finding a good GC that is reliable, fast, and a fair price; but it is well worth it.  

Thanks Tim, nice talking to you. 

I think that you have a great plan to do some deals as an agent.  That is how I got into the business.  I found that it is a great way to learn a lot about real estate and get paid while learning.  Get in touch with other investors and offer to list their flips at a discount.  When you are ready to start investing your own cash you will be more informed and have more contacts (escrow officers, inspectors, local hard money, other investors, handymen ect.). 

Thanks for sharing.  Some good reminders. I have been there done that. I had flip last year that got way behind schedule turned out to be a bigger winner because of an upward moving market.  Nice when it works out that way but good to stay humble and pay attention to the details.