All Forum Posts by: Victor Steffen

8k to replace all pex plumbing in a 3 yr old home. luckily there was a class action suit and insurance covered. All of the pex used in the development had microscopic holes in it which resulted in leaks springing up throughout the entire home! 

I agree that STRs in these destination locations seem bubbly but I do think there's a lot of value to be had by offering short term and fully furnished rentals. Maybe check out more of a utilitarian/ functional STR model? We've had a lot of success targeting markets that have several overlapping industries like a large military presence, medical, university, fortune 500 companies, dowtown attractions and international airports. Think Dallas, Atlanta, Chicago, Austin, Charlotte. Lots of different reasons for guests to be in the area helps to reduce the seasonality seen in leisure stays and you can avoid paying the premium for the luxury asset needed to draw a vacation crowd. You can also limit your downside risk by running the numbers as a long term rental. If your worse case scenario is a 0% cocr but your upside is 20%+ as a STR then that seems like a solid compromise to me.

i think this is a "both / and" answer. 

wealth is built through asset appreciation so I think it's important to hold those blue chip properties. 

The problem is- without positive cashflow there's a ceiling on how many you can carry. 

Buying a mix of both heavy cashflowing midwestern assets alongside your prime location assets means the cash yield from one will offset the negative cashflow from the other and let you hold for a longer period of time to see greater gains.
 

Hi Andrew! your purchase agreement will outline the terms under which your earnest money can be refunded. Like you said- typically buying something "As-Is" means the seller will not agree to make any repairs but most sale contracts will still allow you an inspection period (aka contingency period, option period or due diligence) during which you should be able to withdraw and still receive your earnest money refund if the scope of repair is beyond what you're comfortable with.

in summary, all purchase agreements are different, yours will likely have explicit language regarding your earnest money and when it goes hard. Most agreements allow you an inspection period during which you can withdraw and still get your earnest money back even if agreeing to purchase a property "As Is".

good luck!

welcome Abi! Engaging in this forum and listening to the podcasts is a great first step. If you're ready to take down your first deal I suggest "househacking" . It's a great way to purchase a property with very little cash out of pocket, your roommates or tenants will cover either a large portion, or all of your housing expense, you'll build equity and free up cash that would have been allocated toward rent and start saving for the next deal. 

I always suggest starting with a househack before jumping into a pure rental deal. good luck! 

Excellent share, thank you @Paul Moore !

Hey have you checked out the BP calculators? Also- your own spreadsheet looks very similar to the SemiRetired MD calculators. You may want to check them out as well! 

I just found out about this app and have been a power user ever since. Especially for realtors on here who work with a lot of investors the app allows you to schedule showings and video walk throughs for around $50 each. It has been a game changer! 

If putting 30k into the deal means you won't have the cash on hand to fix a hot water heater that goes out in your first week then I definitely would not move forward. sounds like you're househacking? Any way to use a 3% down conventional loan product or 3.5% down FHA to limit your cash outlay? I'm all for being aggressive and doing what it takes to build the portfolio- but there are also inevitabilities in real estate- 0 cash reserves is an open invitation for Murphy to come knocking.

"if you hang around the barbershop long enough you'll get a haircut" .. Keep hanging around BP and consuming real estate content and you'll be off to a great start!