All Forum Posts by: Todd Goedeke

@Seth McGathey you don t need appreciation if you have a long term lease in place that has a yearly ConC return of 100% from managing a property. 
A $20-30k investment in furnishings is not high risk when your net return in great probability will be $30k per year.

@Jason Eyerly Yes, you will find that those people who dislike arbitrage have no experience with it, don’t  understand that it’s similar to triple net leasing and can t wrap their heads around the fact that Airbnb, short term vacation rentals, are a hospitality business, not a real estate play.

There are thousands of investors looking for truly passive investments. Build in vacation areas for investors. Then NNN the property back from the investor allowing them a passive ConC return of 15%+ while you manage the business.

Good luck ,it’s being done successfully throughout the US.

@Collin Hays tell us the most important part of the story. Over the last 36 months what was the cash on cash return, net income, each year, not including depreciation. Gross revenue is nice but the true story is net income and ConC return.

@Collin Hays occupancy and rate decrease because of oversupply of cabins your size and lack of amenities to make your cabin stand out?

@Vishal P. Build don t buy existing STVR. Find a builder and manager who will triple net lease your new property from you at a 10%, 10 cap. With 35% down you will get a cash on cash return of 15% other a lease as long as 30 years. Take part in construction as co- project manager . Then co-manage STVR till end of 2025 to receive cost Seg depreciation amount to offset regular income or capital gains.

@Julius Vincent please clarify your understanding of material participation as it applies to construction of STVR duplexes. 
4 duplexes are constructed over 4 months in 2025 with the investor working as co project manager of all duplexes. After completion investor will actively manage in 2025 all STVR activities. Investor will hire out cleaning and not personally clean or do any lawn maintenance. 

Does an investor have to do more than 50% of every activity individually or is it cumulative. Example: If each unit takes 2.5 hrs per week to clean X 8 units= 20 hours, plus lawn cutting and landscaping takes 4 hours equalling 24 hrs. Do construction and management hours count cumulatively against lawn and cleaning hours.

Understand a project manager can manage 4 duplexes in different stages of development at same time.

@Robbie Eddington questions for you to answer. What makes your property stand out from others: 1.Rates 2.Are you marketing directly to vacationers, direct bookings 3.what amenities are you offering 4.photography, professional or not 5.do you use video walk through.

It’s not just enough to be competitive. You need to standout from the competition.

@Bill B. your comments are not true of a Solo 401k with a Roth account. There is never any taxes due on distributions from income or RE appreciation sales. There is no RMD required in a Roth account. It is easy to get financing for RE in a Solo 401k.

@Paul Novak help fellow readers understand how you are paying a RE tax rate of $9.41/$ 1,000 valuation. I know the tax rate in Sheboygan is over $20/$1,000. You stated you paid $255,000 for the house and your RE taxes are $2,400. 2,400/255=$9.41/1,000. 

Even if you are evading paying RE taxes on present valuation, once the sales transaction is recorded the new assessed valuation will show an amount based on your purchase.

It does not appear that you allowed for any vacancy %  and have zero maintenance budget.

@Paul Novak how do you anticipate you will have any positive ConC return? At 6.875% your mortgage is $1160/ month. RE taxes are at least $5k and insurance at least another $1k. That totals $1660/ mo with no future consideration for maintenance.