All Forum Posts by: Sean Ploskina

@James Henderson

Your best bet might be a Credit Union or smaller bank if you are going to be only holding in your LLC. They will probably have shorter terms or a balloon or charge interest.

You may want to consider buying with your personal name; completing the rehab and BRRRR with a more cash flow friendly Fannie/Freddie loan. Then transferring ownership to your LLC. The loan would still be in your name but ownership would be in the LLC. I have done this on all the properties I have. What matters to the lender is who's name the loan is more than title. That can be changed very quickly unlike the name on the loan.

@Mark Brogan

I have had great success with Brandon Hall and his firm The Real Estate CPA.  He has been on the BP podcast and has a virtual firm that have been easy to work with.  It might be too late for this year but check them out!

@Gregory CallowayYou could consider changing #4 too 'is there anything that needs a little work around?'  Something like that so they are encouraged to let you know about something the seller might have...forgot to mention.

Also if possible get it in writing from them how much they pay every month and what is included.  So you have everyone on the same page

Also I don't see homeowners insurance is that part of the HOA since it is a townhome?

@Aditya Maini

How did you determine the rents?  Not challenging but curious I never analyze by the bedroom.

I would however add at least 5% for Capex(water heaters, roofs, etc) and something for Management even if its just yourself. How did you determine 100/month?

@Johnny Quilenderino

Seems like you have the basic systems but seems like you are still using some rules of thumb at a point you need real numbers.  Especially since it is yours get all the quotes now there isn't a reason not to and that will help with whomever you go with for financing.  I have used ABNB on a commercial property in Norfolk, they were conservative but easy to work with.  Dan Grubb is the guy I used.  

@Wes Mccullar

Welcome to BP! STR has a lot of rules and each city if different.

In terms of finding owners who would allow a sublease I have 6 units that I sublease from owners. I do not to STR strictly speaking but 30+ night stays for my own purposes.

For me it was do your numbers first to determine what you can pay including all utilities, city taxes, fees, rent, set up cost.

Then you can eliminate the properties that won't cash flow.  

Then start searching online for places for rent and start calling, it was a numbers game for me.  Don't get discouraged and take a borderline property they are not worth the extra headache just to get something, wait for the area and property you want.

@William Lindsey  Both strategies are acceptable but you would be best served to discuss what your investors are looking for in this deal.  If they want our quickly then the refi option would be best.  Or they let the money roll you can offer a percentage of profits.  

A loan structure would be the simplest and the one I use as it makes things very clean and clear for all.  

If this is your first couple deals with them or at all simple is better even if you pay a little more to get the experience and their confidence in you as an investor.

I 2nd all that @Patti Robertson said.  Give it a pass, the other cities are better, don't get suckered by the prices you will end up paying more in the end.  

If you are putting in W/D in each unit does it already have individual water meters?  Water around here can get pricey very quickly.  But I see you do not have that in the analysis.  Also 150/month for each maintenance and capex seem low.  

It is being gutted but it is still over 200 years old and tenants break things.  Still not a bad deal but seems like it needs to be perfect to work out.