All Forum Posts by: Adam Rose

 John,

That's a great idea to comp the area to find out what rental rates look like in real time rather than using airdna/awning only. 

I would love to own a beach house investment there, but as Trent had alluded to, I think it may be out of the budge, at least by myself :D.

 Lauren,

Thanks for the great networking suggestion. I sent her a message to connect!

Jason,

Having not done a vacation home loan before, how does it compare to a single family home loan as far as back end DTI ratios, interest rate (I'm assuming it's due to risk), and any other differences that may be important to note?

I  love the idea about duplex/beach cottage homes but felt that would be out of the budget. I will take a look into that. 

Hello all,

I'm looking to start getting some advice for purchasing a property in the next 6 months to a year in PCB. I've traveled there several times for the last few years and love the area. Ideally, the properties main use would be STR, but I love multiple exit strategies.

To start, I’d love to strategize with boots on the ground types in the following areas of expertise:

1). Investment focused real estate agents that understand the area and preferably own investment properties themselves.

2). Lenders that specialize in many loan types including conventional, vacation home loans, dscr to name a few.

3). Property managers that are vertically integrated and have their own handymen, cleaners etc on payroll. 

4). Any contractors/cleaners in the area that aren’t already too swamped to read this post.

5). Any investors in the area with success in unconventional terms of financing real estate ie subto, contract for deed, seller finance etc. 

My typical investment in Colorado has been around a ~500k purchase price, and I really strive to purchase property that is $20,000 to $25,000 under market value and that is break even cash flow minimum after operating expense/debt. This is something I would want to continue in PCB for margin of safety. 

Ideally, I would like something with unobstructed views of the beach. I’ve seen the premium for beachfront, but in my head never having a development in front you warrants it. 

I would love to hear from people in the area of condo complexes that have opportunity, are warrantable, and on the beach as well as what I’ll need to work on to be ready when opportunity arises. 

Thanks y’all

What a great time to start! Well, I’m not sure if it is or not, but I’ve never been great at seeing the future, so I’d say it’s at least a good time to start. 

To begin with, I’m not familiar with New Jersey or Philadelphia, but I like to borrow a term Warren Buffet coined as “investing in your circle of competence.” He was referring to investing in stocks and companies that you are most familiar with, ie a publicly traded company that you work at, but I find this principle to be sound in real estate. Thus, I probably wouldn’t feel comfortable investing in NJ or Philly, but if these are the places you know best, I’d imagine you would. 

As for you, investing as a house hacker in an area you are very familiar will be a competitive advantage you can tap into that the big players can’t. I can also assure you that no amount of biggerpockets, real estate reading, podcasts, books, meetups, and 100 page syndication packets will ever quite match the experiential learning of jumping in. Unfortunately, while education is important, you won’t ever be 100% prepared by reading. You won’t ever be 100% prepared by doing either, but hey, to win this game you have to be prepared to fall and get back up. 

I would be careful with any loan if you are tapping all of your reserves to purchase a property. Definitely make sure you have several months reserves, and then add a little extra as the unforeseen seems to happen in real estate. If that’s not the case currently, postponing is definitely a fine strategy as long you define your goals. 

As for investing in syndications, they typically have a minimum amount to invest and a holding period where you can’t get your money out, so pay attention to the specifics. Maybe a reit is what you meant, which would allow liquidity that syndications wouldn’t. 

Best of luck whatever method you choose! 

Hello Everyone,

I'm looking for a bit of guidance. I'm interested in purchasing my first AirBNB property, and have found a place I think I would love to invest, Panama City Beach! I've visited the area a few times, and it seems that they are trying to distance themselves from their prior party roots. I'd really like to purchase a beachfront condo, rather than housing elsewhere in the city. My question is threefold. First, what condo resorts would you recommend looking for properties? I've heard from locals that Treasure Island, Emerald beach are good places to look. I also have a friend who has a condo at Edgewater that I really liked. Secondly, for any resorts that are preferential, what makes them stand apart from the others (better HOAs, no special assessments, higher occupancy, cheaper HOA cost to amenities provided etc). Finally, I'm interested in beachfront as that's where I would like to stay when I visit, but I would be open to hear about other ideas that have better ROI if there any.

Thanks,

Adam Rose

Bobby,

I would only use rents that are currently being paid. Unfortunately, those tenants may become an added expense to you in the form of an eviction and cost to remodel the unit after vacancy. 

I would also only use what rent is currently, not what rent would be at market value. I have seen a lot of pro forma documents that say “rent at market - operating expense / cap rate=X value” when rents are clearly below what their calculation entails and operating expenses are likely more. 

@Alecia Loveless

congrats. Where are you planning on buying?

Shaun,

Be careful with zoning here. There is a local ordinance that is U+2 and depending on where you live they will check into properties. That is mainly near the CSU campus. 

I haven’t personally dealt with short term rentals, but I know there is specific zones that would allow for it. I think it would be LMN neighborhoods and those for higher density use.

This link will give you some guidance 

https://www.fcgov.com/shortter...

Zach,

First and foremost, welcome! I only own one property here in fort collins and house- hack rooms out in it, but I would love to own more. I’ve got some experience with other markets in Colorado being Greeley, Colorado Springs, and Denver as well as out of state in Kansas and Texas, so if you ever want to chat about real estate, let me know.  

Cheers!