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All Forum Posts by: Aaron Heiskell

Aaron Heiskell has started 4 posts and replied 19 times.

A lot of people weighing in here, and I’m sure everyone has their own experience level.  But at the end of the day, mortgage rates are at a 50 YEAR LOW. So what? Well that means first time home buyers, people looking to upgrade, well their dollar can go a lot further.  
I just seen a residential property go under contract for 15 year mortgage at 2.68%, and a 30 year at 2.99%.... Those folks were also approved for a lot more than what they and I thought they would be.

That being said I can see the vacation rental investments going both ways. 
This year is more than likely going to get hard here in a couple months when the virus really starts hitting the US.  Which means rentals MAY produce the same amount as last year, if they are in good locations 

 So Potential buyers will realize how markets can can fluctuate and it may not be as safe as a bet as a long term property. 
However the low interest rates could off set that as vacation property owners can get more house for their buck. 

Bottom line, no one can really tell what’s going to happen yet.  I’m on the east coast and haven’t seen much traction with that yet, but according to Redfin, in Seattle, there are sellers pulling their homes off the market because they don’t want potentially sick people in their homes...

Post: Wilmington Investor Meet-Up

Aaron HeiskellPosted
  • Realtor
  • Surf City, NC
  • Posts 20
  • Votes 12

I should be able to make it.  Flying back from Miami that day.  Going Tailgating at the Superbowl! GO CHIEFS!!

Post: House Hack - My Primary Residence

Aaron HeiskellPosted
  • Realtor
  • Surf City, NC
  • Posts 20
  • Votes 12

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $155,000

This is my primary residence, 3 bedroom 2 bath. I purchased the property in 2014, and began House Hacking it well before I knew what Bigger Pockets was! I have had mostly 1 roommate at a time, although there was once a family of 6 (Mom, dad, and 4 Kids) living with me (TOTAL NIGHTMARE). Home was purchased as new Construction on VA Loan (0 down!) I have since refinanced it for better APR, lower payment etc. If I were to move out, it comps for rent just under $1500/month.

What made you interested in investing in this type of deal?

I was moving from Hawaii to North Carolina, found an agent out here (before I became one) and was just looking to rent, they didn't really understand investment properties, but brought up the point that I was just paying for someone elses house if I rented. So I decided to pull the trigger and buy my own.

How did you find this deal and how did you negotiate it?

Found it online. Was on the market for over 100 days, new construction in a new subdivision. I offered asking price, 5k in seller concessions, stainless steal appliances, and add a fence.

How did you finance this deal?

VA Loan ( I actually put 5% down even though I didnt need to)

How did you add value to the deal?

Only thing I have done is add a shed in the backyard with electric to it, and a patio.

What was the outcome?

Currently House Hacking it. Mortgage is 1007/month. 1 room is being rented out for 750/month.

Lessons learned? Challenges?

Choose your roommates wisely, and dont rent to friends. (that was the family of 6) They completely destroyed the carpet and walls in the spare rooms. Had to do some drywall work, replace a toilet because they broke the bowl, and pay for a 2 day deep clean because it was trashed. At the time I was working about 100 hours/week so I was never home to actually see it. Bad decision to rent to them. Current tenant is hyper OCD about cleanliness.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I purchased the property with an agent, who passed me off to their daughter who was brand new in the business. I was 24 when i bought the home, and literally did all of the negotiations myself, not knowing what I was doing because she was so inexperienced. I have since got my License and am crushing it while still serving on active duty.

Post: Coastal REIA Monthly Meeting (Wilmington, NC)

Aaron HeiskellPosted
  • Realtor
  • Surf City, NC
  • Posts 20
  • Votes 12

Disappointed I missed this meeting, would have liked to have been there, but had some things come up with work.  Looking forward to seeing everyone again next month!

Post: Purchasing Vacation Rentals - Lets Talk About It

Aaron HeiskellPosted
  • Realtor
  • Surf City, NC
  • Posts 20
  • Votes 12

To be honest, I would say it is 60/40ish in favor of second home owners.  I say “second home owners” due to the amount of down payment required by lenders if it is a second home vs investment property.  Everyone that I have worked with, buyers and sellers, primarily use the property to generate as much income as possible.  Now there are a few cases where they just want to rent it out to cover the debt service or taxes, but more often than not the owners are wanting it to produce income.  I don’t think there has been an influx in investors solely because of Air BnB/VRBO etc., the Island has been a highly trafficked vacation spot for many years and is always busy due to the generally lower prices than most barrier islands.  
As far as the sheets, most property management firms now require sheets to be either provided by owner or they wrap it in the cost to the tenants (I believe anyways, I’m not too involved with property management, I just refer everyone to our in house guy that does all of that)

Post: Purchasing Vacation Rentals - Lets Talk About It

Aaron HeiskellPosted
  • Realtor
  • Surf City, NC
  • Posts 20
  • Votes 12

So here on the Coast of North Carolina, Vacation Rentals are HOT.  They are great for vacationing, provide excellent ocean views, have a solid amount of things to do during the season, and most places are night life friendly! 
On the homeowner side; they provide good returns, a nice place to come stay as a second home or vacation to. But what are things that we DON’T think or talk about for owning those types of investment properties?

1) Carrying Costs - No, I’m not just talking about your debt service, taxes, home owners insurance, or property management fees (which can be hefty in some areas).   I’m talking about the water bill, sewer, electric, trash services(which can be double the amount during the hot rental seasons because they come twice as often), internet, cable, and on and on and on.  
2) Cleaning Services - if you do Week long rentals, you have to turn that property every week, so your cleaners need to be quick AND thorough.  No tenant wants to want into a dirty house when they are on vacation.  But some of those cleaners can be pretty expensive, And it’s all based on the size of your property. 
3) Amenities - a huge key in vacation rentals, isn’t just stuffing tenants in day after day/ week after week.  It is the repeat business that you really make your money on. You get your repeat business from what amenities you provide those tenants.  If you don’t have great ocean views, you better have a pool, or hot tub, or a MONSTER TV in the common areas, with TVs in all the bedrooms.  You also need to look at what types of linens you are providing.  People go on vacation and choose to stay at a house on the beach, not a hotel, but they want hotel-like service.  So buy the nice sheets people.  Or have a turn down provider come in and make the beds and put the chocolates on the pillow, it will cost you more from week to week, but your business will prove to be more successful with returning happy tenants.  
4) Flood Insurance - when you are purchasing Coastal Properties in NC, have your agent (or who ever is looking into deals for you) check and see what flood zone the property is in(examples VE, AE, X), and whether or not it is Federal Flood Zone, or COBRA Zone.  The difference that even most agents don’t understand, is how the flood zones affect your flood insurance.  If you’re in a Federal Flood Zone, you get a government backed insurance, while in a COBRA zone, you have to pay for private flood insurance, which can be very costly depending on the flood zone (VE,AE, etc) and depending on your elevation certificate. Best advice, get a quote from a local insurance agent.  
5) Vacation Rental Act - just know that if a property is purchased, the tenants have the right to stay there for any booking from the time of closing to 180 days from closing.  Now this is also important because if the property is sold unfurnished, it has to be furnished for those tenants in LIKE fashion from when they booked it.  Example, if they book a week long vacation in a 3 bedroom house and it is advertised as having 2 queen beds,  a room with double bunk beds and a sleeper couch that can sleep 10 people.   You, as the new owner, have to provide those same sleeping arrangements.  You also need to see what is advertised in regards to patio furniture, TVs, or additional amenities that the property states.  

Overall having a vacation rental can be a headache, but can also be very lucrative.  And in our market on the coast of NOrth Carolina, you can get creative with financing in some cases.  Seller financing, purchasing in LLCs, or trusts, etc.  The best advice I can give anyone looking out here is to talk to a Local Real Estate Agent, that knows what the h€|_|_ they are doing! 

Post: Recently passed the RE Exam in NC!

Aaron HeiskellPosted
  • Realtor
  • Surf City, NC
  • Posts 20
  • Votes 12

Hey Matt, welcome to the community!  I know how hard it is to complete the course and exam, from experience.  Some words of advice, listen to everything your clients are saying about their wants and needs, don’t feed them a line of crap, if you don’t know then tell them(but find out, and fast!) and most of all, be genuine.  People like people persons.  They don’t want a car salesman, that’s what gives us agents a bad rap.  Good luck, let me know if you know of anyone looking for places on the coast and I’ll do the same for people Looking around Charlotte

Post: Wilmington Investor Meet-Up

Aaron HeiskellPosted
  • Realtor
  • Surf City, NC
  • Posts 20
  • Votes 12

What part is everyone meeting at?

Post: Wilmington Investor Meet-Up

Aaron HeiskellPosted
  • Realtor
  • Surf City, NC
  • Posts 20
  • Votes 12

This will be my first meet-up, just started listening to the podcast about a month ago.  I’m a Realtor in Surf City, and excited to meet everyone!