All Forum Posts by: Niyi Adewole

Hi Kyle, 

I own 2 Short Term Rentals in ATL and manage an additional 4 in ATL (6 total). Furnishing costs ~$5k per bedroom for the whole house (i.e. should be able to fully furnish a 3 bed 2 bath home for $15k). 

As others have mentioned, the largest expense will be the downpayment. Would recommend getting a no interest for 12 month credit card to handle furnishing costs and to limit amount of capital spent upfront. 

@Kyle Ransomundefined

@Ajibola Talabi absolutely!

I’m a realtor and investor in atlanta, specializing in house hacking.

I’m currently house hacking a single family with an in law suite in east atlanta, and opted to airbnb to in law suite. This 1 bed 1 bath in law suite brings in ~$2500 on average per month.

@Louis Jackson welcome to BP!

I am a short term rental investor and realtor in Atlanta. I host a virtual call every Wednesday night with other investors in the area and it has proved invaluable.

Will DM you info

@Danielle Turcotte hi Danielle,

I’m an investor and realtor down in atlanta and have been experiencing the same with my buyers.

We have found success offering over asking with short inspection periods (I.e. 3 days or 5 days if on a Friday) and then clawing back value with seller contributing toward closing. The extra dollars offered, when financed over 30 years equate to minimal increase in monthly payment.

Real example below:

Recently renovated Property was listed for $239K. Multiple offer situation.

We offered $255k with $7k toward closing (less money out of pocket at closing).

Also helps if you have “crystal clear criteria” and can get an offer out within 2 days of it being listed

@Anna Batchelor hi Anne,

I’ve found that with Airbnb you first have to get a few positive reviews on your listing before others will feel comfortable booking. Whereas VRBO there are less ratings on properties and guests in general (would equate airbnb to Uber when it comes to importance of ratings, and would equate vrbo to a taxi in terms of ratings).

I would recommend reducing your price on airbnb for first 3 or 4 bookings and following up with guests for 5 star reviews. After that you can move pricing back up.

Questions:

1. do you use dynamic pricing software? I’ve experienced the opposite.

2. Do you utilize a guest management software?

Hi BP Family, 

Does anyone have a good property management recommendation for Louisville Ky? Looking to move 10+ units away from current company. 

Any suggestions would be much appreciated.

 Hi @Penny Brown sorry for the delay! I went with the "Baxter Credit Union" based in illinois 

Investment Info:

Single-family residence other investment.

Purchase price: $465,000
Cash invested: $80,000

Short Term Rental

What made you interested in investing in this type of deal?

Atlanta is a high growth market with 2.9M people projected to move here by 2030. This home is in a desirable area and i purchased this as an appreciation play. Short term rental income helps me hang onto it while it continues to appreciate.

How did you find this deal and how did you negotiate it?

MLS

How did you finance this deal?

Credit Union

How did you add value to the deal?

Very light work needed here

What was the outcome?

Short Term Rental

Good Morning Bigger Pockets Family, 

I recently listened to BP episode 527 and episode 528 with Pace Morby, and I (like many of you) was inspired to take action with the immense wealth of knowledge he provided on securing seller financed deals. I connected with a For Sale By Owner listing in a neighborhood that I really love, and was successful in walking through the talk track and securing a verbal commitment!! We are meeting on tomorrow Morning (Wednesday, November 10th) to work on papering the deal, and I truly need some help on next steps. 

Background 

Seller has not sold to anyone else, because of the following: 

1. 1. Wants to sell as is and he believes the offers that have come his way so far are from people that will try to renegotiate after inspections 
2. 2. He would like to avoid capital gains tax and still have some cashflow coming in as he is moving across the country to the west coast 

Deal Details and what is important to the seller:

1. 1. Total Purchase Price $396k
   
   1. $164k loan still exists on property 
   2. For remaining $242k, Seller would accept payments of $800 per month the first year, $900 per month second year, and $1000 per month after that until the total amount is realized. Zero interest  

1. 2. Requires a $15k down payment to cover the cost of realtor that was working with him and closing 
2. 3. I believe this house will require 2 new bathrooms, 2 new kitchens and some flooring repair. It is a duplex that will pull in ~$5k per month on airbnb total once complete. 

Questions:

1. 1. Where should i get a "Seller Financing" contract from? I've seen rocket law allows you to create one, but do not want to mess this up. Should i contact lawyer and closing attorney? 
2. 2. There is an existing loan of $164k on the home. After taking title, would i be allowed to get a mortgage for that amount and use the home as collateral to take that piece out of the sellers hands? Or would it make more sense to just assume the payments on that loan and keep it in place? The loan he currently has is an ARM from 2008.
3. 3. If anyone has done seller financed deals before and is up for talking later today, i would greatly appreciate it. 
4. Warmly, 
5. Ni