All Forum Posts by: AJ Anderson

Hi @AJ Anderson. If Asheville is still a consideration, we have some of the best appreciation trends you can find, and there seems to be no end in sight for such. It's tough to get an offer accepted of course, but less so if you'll consider a property that's banged up. Personally, I favor the STR route due to the extra cashflow, but it's easier when you're local and can self manage. You can do really well on LTR here as well.

pre-approved and shopping (remotely) in Asheville as we speak! If you know of any screamers, send em my way!

1 Vote

Originally posted by @Jay Hinrichs:

Originally posted by @AJ Anderson:

Originally posted by @Jay Hinrichs:

LOL run over 6k are your kidding ? u will lose time your inspection cost and other dollars just to save 6k which wont mean anything over a 20 year hold right ?

I should clarify that I'm not worried about the $6k- it's just caused me to pause and think through the deal again...

Buyers remorse is real.. i get it.

so back to the question - I take it you're of the belief to just close the deal?

0 Votes

Originally posted by @Jeff He:

@AJ Anderson

What are your investment goals and investment horizon? How much time and effort do you have allocated?

Everybody loves BRRRRs, including me, but in the current market they are very hard to find. Will require a lot of time and effort.

The forums are generating a lot of buzz around STRs. Browsing Airbnb casually, I have noticed rates being much higher than before. I think it's mostly attributed to post lockdown demand. Not sure how long it will sustain for. (Personally bought ABNB stock to indirectly benefit from STRs without the work)

I like and own long term MFHs. Annual leases gives me less stress over vacancies and turnover costs. I typically target 10% COC. Do you plan to invest in state or out of state. Happy to share tips on locations I like.

Hi Jeff- thanks for the message. I am inclined to want LTR in either SFH or MFH. I work a ton so don't have a ton of time to allocate to finding things. I will invest anywhere - just need to understand the market and feel good about it. I list a few markets in my original post!

1 Vote

Originally posted by @Jay Hinrichs:

LOL run over 6k are your kidding ? u will lose time your inspection cost and other dollars just to save 6k which wont mean anything over a 20 year hold right ?

I should clarify that I'm not worried about the $6k- it's just caused me to pause and think through the deal again...

0 Votes

Hi there-

Wanted to get feedback on a deal my wife and I are working on for our second property (and first long-term investment).

We're in escrow on a 2/1 condo in the WPB area of FL. Great community on the intracoastal. It's the cheapest unit (about 20-30k cheaper than other current comps that are rehabbed) in the building and needs some light reno (floor, paint) and has a long-term tenant in the unit that has been there almost 20 years.

25% down (investment), 3.19%

The drastically-below-market rent the tenant pays JUST covers the mortgage/taxes/hoa/ins but no "soft costs." She has already agreed to bump it up a couple hundred in May so we'd at least be even or maybe a little in the green. We have experience with the neighboring communities and we're keen on the long-hold potential of this one.. have to be I guess if it's not cashflowing.

We just got notice that it appraised for about 13k under the purchase price. Seller has agreed to meet us halfway but I obviously feel like we have some leverage here.

Couple questions:

1. The appraiser's notes pretty much just referenced the last 6 months in the same community. Well... a lot has happened in 6 months. 6 months ago, units were selling for cheaper than they are today but it seems he just took an average. How solidly do we want to accept the word of one appraiser?

2. Would you stick with this deal knowing you could either:

a. Raise rent a couple hundred and pay for itself
b. Vacate the tenant, rehab and rent for market rate which is about $600 more than she's paying now
c. There is only so much inventory on the water - value will keep rising as inventory stays scarce

Or would you run? What do you factor into these things?

Thanks in advance!

0 Votes

I'll give you a bump here as I'm also interested in the same thing.

1 Vote

Originally posted by @Brad Jacobson:

Hey AJ, I love the dilemma and frequently visit this decision in my own life. Here's a few thoughts I hope prove useful to you:

1. If you're goal is cashflow (try to leave W2 work, retire early, etc.) then I recommend a short term rental. They cashflow better and give you a fun place to visit when you want. You can also potentially qualify for a 10% down second-home mortgage. That definitely beats the 20-25% that currently is required on most rentals

2. If you want instant equity (quicker build net worth) then I recommend buying local fixer-upper and managing a rehab. This will also help you get some of your investment back immediately unlike buying a turn-key STR

3. I own a few turnkey rentals (traditional) in the mid-west and the lack of appreciation and lower cashflow (due to the PM managing all repairs at a premium) has steered me away from buying more. I love the high cashflow of my STR and I love getting the big paycheck at the sale of a flip or cash-out of a BRRRR.

Hope these thoughts help!

Thanks Brad. Seems I am seeing a lot of love for STR.. Aren't property management companies crushing your margins? For example, we looked at some opportunities out here in Big Bear etc and the companies took 25-35% of profit.

Interesting perspective from everyone here. Appreciate it.

1 Vote

Awesome thanks everyone. I'm definitely not blinded by cashflow.. happy to pay more when needed for the long-term investment.

I think the most difficult part of all of this yet the most exciting part is that it's a "choose your own adventure" type of thing..

0 Votes

Originally posted by @Caleb Brown:

What are your goals? What I see many investors do is take the 100K and BRRR. Most likely you'd have to look outside of LA but the Midwest(Like TN) or Sunbelt area would be ideal. STR are wonderful too especially in markets likes FL. Biggest thing is to establish a team and start.

Goals are to own 10-20 LTR investment properties that give us some freedom to travel and do whatever we'd like. We have a team in place and ready to make things happen. STR are an option, just a bit of a pain with the on-site management.

1 Vote

Hi everyone- first post here.

My wife and I recently did a cash-out refi on our home in Los Angeles and are sitting on a decent chunk of money with the goal of investing in some property.

We initially were purchasing a condo in Hypoluxo FL (close to family who are RE agents, contractors, etc) but seem to be falling out of escrow due to appraisal issues.

We have some familiarity with markets in central WI (I'm from WI and the company I work for is there), Asheville NC (family), Nashville TN and the West Palm Beach area of FL (fam live there). We're trying to figure out where to invest and what to invest in. We're ok to make longer term investments but ideally cashflowing a small amount now. Not afraid of rehab work.

Multi-family? Commercial? What do you guys think and what other info might you need to help provide advice?

7 Votes

All Forum Posts by: AJ Anderson

AJ Anderson has started 6 posts and replied 20 times.

Post: Where to invest 100k?

Post: Close or run? (didn't appraise)

Post: Where to invest 100k?

Post: Close or run? (didn't appraise)

Post: Close or run? (didn't appraise)

Post: Where to Invest $100k

Post: Where to invest 100k?

Post: Where to invest 100k?

Post: Where to invest 100k?

Post: Where to invest 100k?