All Forum Posts by: PJ Kolnik

@Brieer Doggett depending on your types of debt I would actually post on the reddit thread r/personalfinance. Great place to get a balanced perspective. Nothing wrong with Bigger Pockets but you’re probably not going to get the most objective answer to your question here.

@Account Closed in regards to that amount equal to purchase price, you must really need to find a piece of property that is in pretty rough shape that it would need a rehab equal to its purchase price. Tough to find something that fits that criteria that will cash flow adequately in this market.

Henry Lazerow great job showing these numbers, I have been running an Airbnb for about 6 months and in my opinion, if you’re not in wrigleyville, it’s all about the sheer size of the unit. In general, your returns will be directly correlated to how many Queen beds you have in the unit, how good the pictures are, and how many positive reviews are there. I handed mine over to a management company and I’m expecting to probably my market rent + ~10%.

@Drew Reynolds thanks for the follow up on this paperwork. I'm surprised that they are letting investors self-certify this type of tax break. I wish there was a bit more oversight and guidelines to keep people from abusing the opportunity out of the gate.

95% of my guests have been awesome and relatively hassle free, but I just got through the worst of a hellish rager after the pride parade here in Chicago that saw some of the shadiest people from the South and West side dropping car loads of their friends off at one of my units. Best part, the person who booked it was charging a Cover CHARGE!!!! To get into the unit!!!!! After evacuating 50 people from that apartment, calling the cops, apologizing to the neighbors and other tenants, fixing a toilet seat, changing the locks, and airing the smoke out of the apartment. I’m definitely nursing some psychological short term rental wounds, but it’s still worth it. You make more money most of the time with Airbnb and you just have to be willing to accept and manage the risks that are associated with it.

@Jesse Frageman great to run into you in the forums!

I did something similar to this in Chicago. I charged 10-15% higher than what I would have gotten on a regular tenant as well as them taking utilities and furnishing (like a normal tenant would). They are making great money in the summer months but likely to break even in the fall winter and spring. I view them as a business that I want to keep in business, I would not get their rental rate from a normal tenant but I don’t really want to share the volatility of the pricing until I can evaluate how capable of a host they are. There are several companies or individuals that do this model in Chicago but they are definitely not all created equal. So far my tenants have been good businessmen as well.

@Levi Ballard and @Rhett Tullis sounds like you guys better send Google Maps some sort of get-a-clue email. Thanks for the info guys, don't want to embarrass myself too bad here.

@Lane Kawaoka - Congratulations! thanks for the valuable insight as well.

@Rodney Miller - Very helpful general info about the market.

@Rhett Tullis - Can you comment on the overall vacancy you generally see in the following areas for well managed multi family? Southern Oaks, Parmalee, Taylor Park, Prarie Queen, South Walker, and Highland Community South. Also, do you have any multi family property managers that you recommend?

Investors,

I was reading about these new Opportunity Zones that are being established as part of the Tax Cut and Jobs Acts. I wanted to start a thread that starts the speculation of potential investment opporunity possible in these areas.

Also, can someone help me understand the benefit of the following statement in these zones? 

"Qualified Opportunity Zones retain this designation for 10 years. Investors can defer tax on any prior gains until no later than Dec. 31, 2026, so long as the gain is reinvested in a qualified Opportunity Fund, an investment vehicle organized to make investments in these areas. In addition, if the investor holds the investment in the Opportunity Fund for at least 10 years, the investor would be eligible for an increase in its basis equal to the fair market value of the investment on the date that it is sold, according to Treasury officials."

http://www.housingfinance.com/news/treasury-names-...

https://www.curbed.com/2018/4/12/17227124/investme...