All Forum Posts by: Brandt Tingen

I am looking at getting into vacation rentals, and like the Poconos PA market.  Does anyone have any experience there?  I'm headed up in February for a ski trip with the family and was going to schedule some appointments locally, but wanted to ask the BP community as well.

I'm loving this thread as I am looking at getting into vacation rentals right now.  Does anyone have any experience in the Poconos?

Funny how all of us people who live in cold areas have flocked back to these vacation threads in the throws of another Snowmageddon.. LOL

A place like Deep Creek, Smith Mountain Lake, the Poconos could be very practical and perhaps achieve your goal, as it seems like if you're only going there for a week out of the year you're doing it more for the income than you are for yourself.  I like the practical places (which I'd consider to be within a 6 hour drive of where one lives) because then it's not as much about "vacation" as it is about a lifestyle.  One could conceivably drive up to the poconos or deep creek for a long weekend every month, as opposed to one week out of the year in FL... that is if you're still holding down a 9-5 like I am =:D

I also agree that to get the sand without the price you may have to go out of the country.  Costa Rica, the Caribbean, guam.. these could all be possibilities.  I'm going to take vacations in a slightly different way over the next few years to save costs and see where I like and where's not to expensive.  Check out workaway.info and other sites like that.  You can essentially barter 4-5 hrs per day of labor or skills (during the weekday) helping micro/eco hotel/lodge owners to build/design their businesses in really exotic locales in exchange for room and board (and typically the use of other amenities like boats, shuttles, etc.) They particularly like tradesmen because you can obviously help them more with building an eco-cabana if one can swing a hammer and read a blueprint.  I feel this would be killing two birds with one stone because you get to travel to the location, get first hand experience, and create relationships with travel entrepreneurs.

Granted this route may be more for those that see themselves transitioning to a living/working situation at their vacation property on a full-time basis.  

Gilberto, I am an agent in the area who is also weighing similar options.  I agree with Jacob that 2-4 unit multiplexes are not growing on trees like they may have been during the downturn, however, some possibilities do still exist in Montgomery County & DC.  

Another option to consider would be to buy a 2-3 BR / 2-3 BA townhome (w/ basement would be the best) in a decent enough area where you could rent out the rooms at high rates.  This may not be as effective as a multiplex and washing out your increased debt to income a few years down the road when you go to purchase another property, but different banks/brokers look at roommate income differently, I think you'd definitely have to claim it, but you'd have to do your own due diligence on that - I'd be willing to assist as this is something I am interested in as well.

Another strategy is to do the same thing but use short-term rentals (airbnb, vrbo, etc.) to supplement your income as needed.  I believe short term rentals would do very well in many areas across the DC region.

Feel free to reach out to create a game-plan and see if we could help each other.  I would have to learn more about your situation to learn what options are.

How many people are in your family?  Would owner occupying a triplex or a quad in Takoma Park or NE be a possibility if it were a 2 BR unit, or would that be too small for your family.  The podcast episode 86 with Cory Binsfield has some unique insight on renting to college students.  You may want to reach out to him and ask to pick his brain.  I hadn't really thought about this as an option, but this could be a great idea.  I have been looking in Takoma Park for a quad, but this is only another few miles out.  Let's keep in touch with this thread as we study up.

Bryan,  Thanks for the insight.  I think what I need as you pointed out is to get further educated. This property is in one of the best markets in the country for retail, and cash flows well currently, though there is potential to build an addition and create more revenue.  I think my main goal would be to acquire a share and break even while the debt I take on is paid down (which may be altogether different than what we're talking about here I understand). Exit strategy would be to hold. 

Brian, Thanks for the resources.  I need to get more educated.

Ben, 4 of the 10 wealthiest counties in the US are within 10 miles of my front door and I live in 1.  There are several people in my roladex who can cut large checks, but my questions were around how to do this while remaining legally compliant.  Am I overcomplicating the process?  Can I simply solicit these people and get my attorney to draft the debt and or partnership instruments in accordance with the investors, or is it more complicated than that?

Hi All!

I am coming into an opportunity where I may be able to buy out an owner of his 50% share in a commercial piece of property in a very high-demand area of washington DC.  

I have been studying multifamily, but I know retail is another beast altogether.  I am a little concerned because although the property is in one of the prime retail locations in the country, it is a little in dissarray due to mismanagement.  The tenants are either abusing the property or are looking to break their leases due to issues related to deferred maintenance.  

I'm looking to get an education in the steps to valuate and purchase a piece of retail.  Any ideas or resources on this would be greatly appreciated.

Also, how would this work with me buying out one owner's 50% stake? I am assuming I will need to take title with the owner who is staying, and create a new operating agreement under a new LLC that I create with the remaining owner. Any ideas here are much appreciated.

Thanks!

I am coming across a commercial RE deal and need to raise capital to buy out one of the current owner's 50% stake.  I will likely need to raise 300 - 700 thousand.

• How do I solicit these investments with regards to legal compliance?  Does anyone definitive books, webinars, articles, etc. on the subject?
• Is a preferred rate of return enough for investors to bite?  Or are they going to want some equity?  Reason I ask is I don't want the other owner to be able to force my hand into selling down the road.

Hey Zach, I am still somewhat new to investing so wanted to share my thoughts.  

• Give yourself some slack - There is enough information and noise in this space to make anyone's head spin.  Give yourself 6 months to learn without investing at all.  Consume everything you can (books, audios, meetups, etc.) on investing, and just realize this is a time to learn, not a time to invest.  That education will make you feel more confident in networking conversations and while evaluating opportunities.
• The ONLY purpose for going to networking events is... to network. The pitches are very cheesy at REIA. I would recommend you stop going to those. Instead fire up meetup.com, and join 10-20 investor meetups in our area. I have been to CAZA, ALFA, and many others, and they are all better than REIA - no guru selling is going on there. Be prepared to stay late, often the networking at a evening meetup can go to 11 or 12. Go to as many of them as you can handle and build up your roladex. Just tell people what you are looking to accomplish and be genuine, no need to feel shy around these folks, they all started in the same spot, with no real estate holdings at all.

Before long you'll be learning all kinds of amazing things, making local connections, and starting to get a handle on where in the vast investing ecosystem that you will fit in.  I'll see you at one of these future events I'm sure.  I'm still heavily learning, and I'm getting the feeling that with real estate I'll be "still learning" until my dying day!  :)  I'm learning to enjoy the ride and the uncertainty. 

@Account Closed Hi Shaun, Thanks for info.  Dumb question, what's DU & LP mean?