All Forum Posts by: Paul C.

Hey Guys, I'm working to build an Excel model for a potential STR opportunity. We are specifically looking at lake properties in the southeast more specifically in Georgia(close to Atlanta). Does anyone have any insight into the occupancy rates you are seeing? How big of a difference is their between peek season and off season? How much should I expect revenues to change between seasons?

With all the changes of Covid, my wife and i are looking to potentially move to a lake now that we can work from home full time. We currently own a home with a mortgage that I could rent out and break even. With a family, we are looking to either construct or do a major rehab of a lake home as we have not found any options that we like in our price range. The issue is that we cannot afford to pay 2 mortgages at once. Is there any type of financing that exists where we only start making payments once we can move in to the property? That would give us time to rent out our current home and not have to try to make two payments. Any ideas are much appreciated!

@Theresa Harris Mostly mowing grass, picking up leaves. There are a couple of plants, but it's nothing exotic. I like your advice, most people in duplexes are probably not expecting to have to cut grass plus there is not much storage for a lawnmower even though you could make it work. Should I just get a quote for getting grass cut at duplex twice a month and the same at SFH to add it to rent if necessary?

In terms of landscaping, I see three options at my rental properties: 1) Let tenant handle 2) I do all landscaping and bake costs into rent 3)I do all landscaping and charge additional fee like you see a lot of times with apartment complexes. There are downsides to each. In the first case, tenants either don't do it or do a poor job. In the second, increasing rent price will automatically exclude some tenants from even seeing your property. In the third, it seems a little more like you are hiding part of the rent associated with property.

I like for my properties to look good as I believe it is a big reason I am able to rent out quickly. One SFH is in a B/B+ neighborhood and my duplex is in a C+ neighborhood. What have you all found as the best strategy to ensure the yard does not go to crap?

Hi, I use Tenant Cloud for all my properties and accounting and have a question about how I should allocate payments towards a HELOC. I have a HELOC on one property and used that money to put a down payment and renovate a duplex I purchased. I make payments towards the HELOC from the rent that I receive from my duplex. Should I be recording these payments like it is a loan against the duplex since that is what I used the money for or should I record them against the first property on which the HELOC was taken out? Or should I record them at all since most of the HELOC was used for capital improvements that I am depreciating over time?

Hi All, I am in the market for a new job and looking for guidance and connections. Currently, I work at Comcast as a Senior Financial Analyst, but I am looking to break in to the real estate/construction industries as this is my true passion. I have a lot of experience as a Financial Analyst, manager, and project manager and have worked in all types of types of industries(healthcare, IT, retail, telecommunications) and I am able to learn things quickly. I am interested in Financial Analyst and Project Management roles. However I'm not sure I have the corporate PM experience that most real estate firms are looking for, although I have managed a couple of bigger renovations on personal rental homes that I own. If anyone knows of any companies and/or individuals that are looking for these types of roles, I would love to connect. Please PM me as I would be happy to send over a resume and get a conversation going. I am currently in the Atlanta area and would like to find a position here. Thanks in advance.

@Jaysen Medhurst I appreciate the input and I probably didn’t communicate it well but I’m more looking for creative financing ideas when you have people willing to work with you, but do not have much money to put down.

Hi @Jaysen Medhurst where did you get your numbers from? 

Say I buy it for 270k with conventional loan, do a rehab of 60k, ARV of 400k and rent out for 2200/month, these are my numbers:

Mortgage:$1260/month

Taxes: 177/month(using last years taxes would be closer to 70/month, but im being conservative)

Insurance: 177/month

Capex:286/month

profit = 300/month

1% rule? .67% which it would be great to hear from others in this area, but it seems almost impossible to find something actually at or above the 1% unless it's multiunit.

75% LTV: 240,000 should be offer price thus upping my rent to price+rehab percentage.

It would probably take 3 months to renovate and honestly my family would probably only make me pay utilities/expenses. 

Hi, kind of long story here, but I am looking for ideas on how to approach and structure purchasing a property from my Dad and his siblings as my grandmother recently passed away and they are talking about selling the property so I'm hoping to make this a win-win for all of us. Would love to do some sort of weird BRRRR so that I dont have much money in the deal.

My situation: own 2 other investment properties that are cash flowing nicely and plan on purchasing a "forever" home(meaning it may not be a great investment, but hopefully it has everything we need) in the next month or two with my wife. On the forever home we are going to use a conventional loan with very little money down as we do not have a ton of savings, but have pretty good W2 jobs and good credit scores. Whatever my financing suggestions are on this property I will need my wife to sign off and she is less risk averse than I so keep that in mind 😊

Family situation: My grandmother recently passed away and the siblings are looking to sell the house relatively soon. We all have good relationships and I believe they will work with me as long as this can be a win-win. I do not think any of them desperately need a large check(like they would get from a traditional sale), but I would want to pay them for the house within a year or earlier if possible. Family has stated they would not mind renovations and would prefer for it to stay in the family although I am slightly nervous on how this would actually play out as my grandparents built this house in the 60's and we have tons of great memories there.

House situation: Built in the 60's, 4 bedroom 2 bath with full basement with bonus room gigantic laundry/utility room and office, 2 car garage, workshop area, and it is definitely livable and had a couple of additions over the years, but I have a couple of concerns here. The main concern for me is electrical work as I believe it is mostly original and my Grandad was a tinkerer so over the years instead of calling electricians he would try to fix things himself so there are wires hanging all over the basement. We have been told by people installing appliances and electricians in the past they did not really want to do many changes as the system is so funky it is a fire hazard, doubt it is up to code, and once they started working on one thing they may open up a huge can of worms. Smaller concern is the plumbing/piping as I believe it originally have galvanized pipes(I heard those are no longer legal), but those were replaced(not sure when), but I think they are okay. My concern prior to renting out the house would be that I would need to replace all of the electrical as one repair issue with a tenant could cause a major problem and I could see myself renovating the kitchen and bathrooms to get full ARV, but that could wait a few years as they are in decent shape.

Does anyone have any good ideas I could present to my family members that would entice them to do such a deal? It would need to be with little to no money down at first, but I could potentially make monthly payments once it is rented and possibly get another loan to make a balloon payment down the line? Should I use hard money(I might be a little too risk averse) or conventional or some other option? I don't have exact numbers, but my first guesses are below and would need ideas on how to get those as well whether it be inspection, appraisal, and quotes on repair work. Would also love if someone could help me running the numbers to determine a good purchase price as I would like to be at 75% ltv so I can pull all my money back out of the deal.

ARV with just electrical repairs: 340,000

ARV with full update: 390,000 - 430,000

Rent with just electrical repairs: 1700
Rent with full update: 2200

Repair Estimates with no contractor help:

Electrical - 10,000

Kitchen - 12,000

2 bathrooms - 12,000

Paint/Take 1 wall out - 12,000

Misc/overages - 16,000

Total - 60,0000

Sorry for how long the post is, but let me know if you need additional info to help answer my questions.

Thanks @Joe Funari. Yep, I understand this is only part of the puzzle, but it is the part of the puzzle that I don't know how to solve at this point. Just trying to see if there is a way to get this data. Also, I'm currently house hacking so I may potentially live in these buy and holds.