All Forum Posts by: Susan Gillespie

Hi Jeremy, I would consider timing as part of your buying strategy. If you buy this house, and it takes a few months to close and rehab, you're getting dangerously close to the holiday season. That generally means fewer people looking or wanting to move in winter, and it also can mean some bigger price concessions.

On the other hand, if the house continues to sit a few more months, you may have better negotiating power with the seller for the same reasons.

In my humble opinion, flippers and even many contractors are notorious for underestimating how long it takes to complete a project. They also gloss over related holding costs and delays. Winter months in MN can be especially cruel - high utility bills, blizzards, weather delays, etc.

I wouldn't hesitate to make a low offer to start the negotiation, but I would talk with your agent about a selling timeframe and expected days on market (DOM). If you can wait a few months as a buyer (buy in winter), you might find less competition and time your own sale closer to the spring market. 

@Trevor Lohman   that's not crazy at all. You made a solid case for your reasons to consider buying an income property and it sounds like you're doing your homework. There are so many benefits to owning, but you don't have to live in your property to be a great investor. 

Vacation rentals can generate higher rents than long-term rentals, but they're more work in terms of ongoing marketing and management. Top-rated vacation rentals have highly responsive management, from inquiries to bookings, and focus on quality service.

Technology has helped the industry rapidly evolve, from remote door locks to online monitoring and management systems. Combine this with consumers' embrace of the sharing-economy, and it's a great time to be an owner.

I started an interview series on my blog with vacation rental owners, including a super nice guy on this forum (thanks @Joe Sillaman  )!  I would try to focus on getting advice from actual owners versus the naysayers.

You might consider attending the HomeAway Summit in San Diego this fall. It's very well run, and you'll be able to network with owners and investors. I'm speaking on the investor panel, so let me know if you go.

Good luck and remember to focus on your own goals and the numbers. 

Hi @Chris Stromdahl I'm in a similar market situation (many of us are) where prices are bid up by investors who have the cash or financial wherewithal to pay more to get the property.

If you were the seller, would you sell to the logical person making the case for a price reduction, or to the cash/motivated buyer who will pay top dollar?

I would consider market dynamics in your equation, along with motivation of the seller. Don't try so hard to get a property that you get a bad deal.

Have you considered single family properties? My best deals by far have been ugly but minimally distressed properties that no one else wants. The ick factor translates to a lower sales price. These are also harder to find now, but there are more opportunities overall.

My investing partner/husband is also a Navy vet. Our specialty is evaluation. If we can help, let me know. My advice is to network with credible investors, learn as much as you can and be ready for the right deal when it comes. Good luck. 

@Micki McNie I'm going to forward info to you. If you don't need it, no worries, but I think you'll be able to get some insight on your rental. 

When property management companies advertise their high level of service, they should be highly responsive. Or if it's low price, low service, you get what you pay for.

Hope you find what you need. 

Hi @Brandon Turner ! I like your idea. There's a huge overlap of traditional real estate investors who are diversifying their portfolios with short-term rentals. The rents are typically higher, and there are tons of great online tools available to buy, market and manage vacation rental properties, whether owners want to be hands-on or use full-service management.

You should talk with Evolve Vacation Rental. They're in Denver. I can vouch for their knowledge, professionalism and enthusiasm. They have a booking fee of 10%.

Check out Peakos, also in Denver. They have a fixed fee service that's unique, and very knowledgeable founders. 

I can give you specific contact info if you'd like. 

Why do you think it's too good to be true? This space is booming and Denver is a hotbed of smart startups, as you know...

@Cory T. Thanks for sharing your experience and nice job with the article. Please keep us up to date. There are lessons to be learned for many of us on this forum, and hopefully will result in positive changes regarding awareness and protection of tenant and owner rights.

I wish you the best as you work to resolve this. On the bright side, your experience is growing exponentially. 

Susan

@Keith Albrecht  nice to meet you and thank you for your service.

I'm in the St. Paul area too. Feel free to connect if you'd like to talk sometime.

Hi Dave, I have a condo in St. Pete. Feel free to message me or call if you'd like to discuss. I can give you some perspective as a non-FL resident. I also have some contacts in the area. 

Susan 

@Mark Caramanna  is it a buy-rehab-rent or buy-rehab-sell? In other words, are you planning to keep it?

Doesn't appfolio offer some level of evaluation?

I can help if you want to message me.

@Bryan N. it's hard to find a real estate agent who understands investment property variables and cash flow. It comes with direct experience. I don't know what your criteria are, but I would try to be as specific as possible with your agent. He sounds like he's trying to help, and it's valuable to have MLS feeds and work with someone you can trust.

I've worked with local agents who aren't investors, but they know my target neighborhoods extremely well. They can tell me the neighborhoods that sell faster, common red flags (flooded basements to stucco issues), the features and upgrades that most matter from a renter/buyer perspective, etc. In short, they have great local expertise.

Be specific with your realtor, but don't waste his time or burn your bridges. As another approach, find a realtor who's an investment property owner. But I wouldn't string your realtor along if you go that route.

I wrote a post on the topic based on my own experience - this might help: http://beta.biggerpockets.com/blogs/4518/blog_posts/33002-how-to-find-an-investor-friendly-real-estate-agent-part-1-of-2