All Forum Posts by: Trevor Schmitt

This could be a nice little cash booster for you! Depending on the size/condition of the garage, you could store peoples motorcycles/cars/boats/etc... the best place to market that IMO would be through FB marketplace, local newspapers, craigslist, and any other local market forums. You would assuredly get some leads if the space were suitable! 

One thing to consider and check on is what type of insurance policy you would want to keep if you were to store what was mentioned above. Definitely talk to your insurance agent about that! 

Quote from @Keivan Cross:

Please advise on the following deal. This is my first deal in Dayton, OH.

$94,000 Purchase Price

$30,000 Rehab

25% down + Closing= $27,000

All in= $57,000

ARV= $125,000

COC= 12%

Neighborhood Grade= C

Considering I will not be able to get all of my money out of the deal with a 75% LTV. Is this still a good deal?

Hey Keivan, the first thing I would ask is how many deals similar to this have you analyzed? Then I would be comparing this deal to those! With rising interest rates, the BRRRR strategy is becoming harder and harder... so you have to compare this situation to any alternative opportunities that you may have.

A good piece of advice that I received early on was "You have to hit a few singles before you can start swinging for the fences and hit a home run." There is a cost of waiting and not beginning to gain the experience now as well. 

I also completely agree with what @Benjamin Aaker noted as well... this really comes down to what your plan is moving forward! 

Quote from @Bien Nguyen:

My husband and I are new to Bigger Pockets and have been wanting to own an STR and Bed and Breakfast in the future. We have goals of obtaining and running 3 STR's within 5 years or less as we both work full time, and I do real estate in addition to my full time job. We have a goal of buying a STR by the end of the year if everything goals well.

We have been looking at different properties such as cabins and homes in North Georgia that area close to wineries, outdoor activities, and state parks; as well as beach condos in South Carolina and Florida.

However, we are struggling with whether our first STR should be close even if the numbers are not as strong.  My husband is concerned about the distance and he is particular about maintenance work/ renovations and wants to be close where he can drive to check on the property.  I, on the other hand, am more about the cash on cash return and believe we need to focus on a good market as long as it is within the state of Georgia (we live in Savannah area) or within a 2 hour drive if out of state (like South Carolina or Florida).  

How did others start and did you buy a property that was close as your first STR?  Thanks in advance for your feedback!

Being that this is your first STR and you do not have an established team in any area, I would suggest an STR as close to you as possible. As you know, handymen are incredibly overbooked right now and it is a struggle to find someone to do things. Without a team in place, you could be stuck trying to find someone to complete even the simplest of tasks when needed, or you will be paying an outrageous amount to have the work done, which will destroy the ROI you had planned for. This type of thing you can take care of if the property is near you. 

Quote from @Benton Potts:

Curious to know if you can be an MLO and Real Estate Agent both Independently and also on the same transaction. I just want to know if it's legally possible. There's and FHA document from Dec 2022 that allows for RE Agents to also Originate and FHA Loan. Does anyone on here do both? Independently and also on the same transaction?

 Which state is the transaction in? The laws are different state-by-state. Where I am located in ND, you can hold both licenses, but you cannot represent a client as a lender and agent on the same transaction. 

Quote from @Gerald Moore:

Interested in getting started investing in 2-4 unit Multifamily properties in Rochester, NY. 

As a newbie please provide suggestions to find good turn-key properties?  

Please provide some financing strategies?

Growth strategies?

Thanks

 Hi Gerald! As you know, there is a ton of ways to answer your question. The bit of advice I would give to you as someone who is getting started investing in 2-4 unit multifamily properties is to consistently analyze as many properties as you can. For the next 3 / 6 / 9 months, run the numbers on every 2-4 unit property that hits the market.  

At this point a "good" property can look much different to everyone... by running the numbers on a bunch of properties you will start to be able to identify "good" and "bad" properties. This will allow you to be more specific on what it is you are looking for, and most importantly afford you the confidence to act quickly when you find the right property! 

Hi Theodore, what are you planning on doing with the property that you purchase in Penn?

If there is a considerable amount of work to be done, it may be beneficial to purchase the property with cash (using funds from cash out refi or HELOC), perform the work and then cash out refi the property in Penn as well. If done right, you could end up with a majority, if not all of your initial cash investment into that property back.

Once you complete the renovations and refi the property, you can then take those funds to pay off the HELOC! At that point you have all of your cash back + another property!

Quote from @Christopher Huber:

This one is for the landlords!

I have some renters who have never been awful but haven't been good either. They've never gone a month without paying rent but they have paid partial rent a couple times with long shot promises of paying the rest when they get paid in two weeks. It never happens. Their lease ends in October.

Have any of you let a tenant go by not renewing their lease? Is that different from an eviction? What is a good way to do this to avoid escalating the situation? Open to any tips and advice you have for me!

PS: This is my first rental and my first ever tenant. I definitely learned some things to do better when screening!

Thanks

You will most likely have to give them a notice 30-60 days before the termination. If their lease ends at the end of October, give them written notice prior to September 1 and you will be golden!

I would start by checking your current lease that you have in place with your tenants. That should state how much of a notice you will have to give them, and that can differ from state to state when it comes to not renewing a lease. 

Quote from @Stephanie Lynn Narcisse:

Hello everyone, 

I'm an architecture student that's looking to purchase her first property. I'm an international student at FIU and live in North Miami, Florida. My plan is to get a single family home with an efficiency apartment. I don't mind taking things slow because I know I have a lot to learn. I just want to get a property that provides me with a place to stay and enough profit to cover my basic expenses and save some money. After that's taken care of I will build my portfolio little by little. I had looked into taxdeed sales because I want to pay off the property quickly but the one property I had found was redeemed before I could purchase it. My mother is willing to take out a loan to help me. She works for an international organization that has it's own bank and offers low interest to it's employees and their family members. I have an account with this bank as well. 

I would really appreciate any kind of advice you all can offer.

Great to hear, Stephanie! One bit of advice that I would implement immediately is start analyzing deals consistently! Create a database (even if it is a notebook) and start running numbers on as many properties as you can. Keep tabs on new properties that are hitting the market and run the numbers on them as they do. Once you have done this 50-100x you will start to recognize properties that will work well for you, and just as importantly, you will be able to eliminate the ones that do not! This will also be a great way to show confidence and competence when having these discussions with your family members and/or banks! 

Hope you find this useful; I know that I did early on in my investing journey 😀 I still have the green notebook that I started doing this in about 6 years ago! It is fun to even look back at them to this day to view and compare deals, and especially cool to see that I actually purchased a property that I analyzed about halfway through the notebook! 

Quote from @Courtney Mccrear:

Any agents or investors in here familiar with the Austin Tx market?

Trying to househack a multifamily, stuck between Houston or Austin. I’m grateful for any input.

I’d prefer to assume another Veterans Loan, to avoid 7% interest rates. I’m a veteran as well.

I have cash as well!

Already approved for VA loan also! Let's work!

Have you identified any potential deals that you could move forward with in either market? Curious to see what those properties/numbers are looking like in those markets.

Kudos to you for looking for a househack, that is how I got started in my investing journey as well! Currently trying to convince my girlfriend (we own a home together, and have a 5 month old son 😀) to househack one more time before we move into a larger home to raise our family in!  

Quote from @Bruce Lynn:

Quote from @Chris Seveney:

@Bruce Woodruff

Not surprising- as others mentioned those who used 2021- 2022 as a measuring stick are going to be in for a rude awakening. I don’t see things getting better anytime soon as if you look at economic trends interest rates are stabilized for the time being, we are seeing increased job losses and inflation outperforming wages which eventually will cause more pain.

Ie: things are getting worse before they get better

And now that people have to start back paying $300-$500/month on their student loans, where does that money shift from?  Probably restaurants and STR....maybe some airfare as well.

I think that is fair to say in destination areas most definitely. I have four AirBnb units listed in ND/MN that are not in vacation areas... the people/families that are booking the units are simply in the area for work, to see family, or for youth sporting events to name a few. I believe these will remain popular because many prefer the space they are getting compared to hotel options in a similar price range. If you can live without a terrible complimentary breakfast, and a pool... it is an absolute no brainer to book the units that I have listed. 

My first unit almost two years ago I could simply "set it, and forget it" because there was little competition... now I have had to revamp listings, and pay more attention to pricing, but after doing so my occupancy rates are still very high. There is certainly more competition, however, the number of people looking to be guests has increased dramatically as well in our area.