All Forum Posts by: Matthew Masoud

Yes, this will absolutely increase your monthly debt payments. 

Many people are stuck on the "Refinance" part of the BRRRR because the deal does not cash flow at today's interest rates.

A BRRRR only really works when the deal cash-flows (DSCR>1.25) at the new debt payment after refinancing.

So I've fallen in love with underwriting. I can spend days inside a spreadsheet. I've created my own fairly detailed underwriting spreadsheet.

From the deals I've closed, my underwriting has gotten more and more accurate to what actually happens when the property is stabilized.

I'm thinking of offering to run the numbers on other peoples' deals and giving them a detailed report about how I believe the deal with perform.

I'm not selling anything I just want to get feedback on the viability of this business before I got out and spend hours trying to build it.

 We purchase in bulk and only add one female and one male razor. at $0.50/razor it only adds $1 per reservation in costs. 

 Check on furnish finder for the going rate for that unit size/amenities. Estimate a 90% occupancy rate and ensure you're still making money on that arbitrage. 

I think your best bet is going to be a combination of MTR and STR.

We operate all of our properties that way. We use STR reservations to cover the gap between two MTR reservations.

It's the balance we like between steady income while still collecting a premium.

I started out with managing my own property, The portfolio got big enough to hire a full-time person to help me out and a Virtual Assitant. 

After a while, I had operations DOWN and felt comfortable enough taking outside clients. All I had to do at that point was plug them into my existing system.

You need thick skin in this business but I think most of the money from it is made by creating a system that manages your own portfolio well, not other people's portfolios, especially in multifamily. 

I got one right away thinking it would solve all of my problems.

I had to fire them and the two after them before I just hired someone full-time + a VA, and trained them. Got the process down so I actually turned a business out of it.

If trained well things run pretty damn smoothly but I still have to jump in and take care of something a few times a week but we are still less than 100 units.

Very good questions.

Most properties have 50%-60% equity. We are refinancing only at 60%-65% to prepare for a potential increase in cap rates that will directly hurt property values.

Our portfolio is spread out over 6 properties. They all share a bank that can float any property for over 6 months (This is not an operating account, each property has its own operating account)

. Think of it as an umbrella policy over our actual umbrella policy over our regular insurance for each property.

We use this account for CapEx repairs and then fill it up with the following month's cashflow

Unfortunately because of how new the mid-term rental space is, there is no software that easily runs operations.

You'll have to get creative with the short term management softwares out there.

 Double the monthly rent is a good rule of thumb although some markets are more or less depending on demand.

Best areas are exactly what you said mid/large cities with hospitals, businesses, schools, etc.

Yeah I'd definitely furnish that second unit and give it a shot. I always like to think worst case scenario, it makes me less afraid to make big moves. Worse case scenario you sell the furniture and rent out that second unit as a regular rental. (make sure the numbers work long-term as well)