All Forum Posts by: Andrew K.

@Peter Sanchez I was with you! Great reference!

-Andrew

@James Walker wow, what a cool property. You’ve already gotten some good ideas for potential use. Here’s another random one. A co-worker of mine is starting a non-profit focused on senior and youth enrichment/activity programs. He’s tied in with the AARP who eagerly wants to serve the area—in a big way.

My co-worker is focused on Cibolo (for now), however can not find a space the suits his needs in the city. I passed the address of your property to him. If interested, I’m happy to facilitate an introduction.

Thanks in advance!

-Andrew

@Paul M. DeAngelis thanks for starting the thread! I too have often considered the laundromat biz. I appreciate your offer to share your insight in to the niche.

Any thoughts on coins vs. cards?

Collecting coins seems to be the largest barrier to increasing the passive nature of the biz. Alternatively it seems the cards present another barrier, since lower income folks also need to purchase the cards (and likely lose them frequently).

Do you recommend purchasing an existing operation? Or find a vacant location (or underperforming) and leasing the space?

I’m interested in your thoughts on evaluating existing locations to accurately determine P&L. Any tips on structuring a lease? Long term, low price/sq ft, specific tenant improvements, etc.

So many more questions, but don’t want to totally hijack the thread!

Thanks for your feedback.

-Andrew

@Gordon Barbay not sure what the true underlying factor is with your tenant’s failure to pay rent on time. However, consider the fact that some professions don’t pay their employees consistently on the 1st of the month. Maybe it’s a matter of when the the tenant actually gets paid.

Can’t remember which one, but a former BP podcast guest came to this realization with a tenant of his and simply adjusted the date the rent was due (from the 1st to the 15th). From that point forward, no more late payments and eviction threats.

Knowing that the average American barely has $1,000 to their name, it’s a cash flow problem. Aligning the due date with when the tenant gets their paycheck could be key.

I bring this up as a factor to consider. However the odds are pretty high that the tenant just doesn’t have their priorities straight. Lease non-renewal would be justified, if you can’t get them trained.

Good luck and report back on what you decide!

-Andrew

@Jake Hobson welcome to BP! Also, welcome to San Antonio!

I’m also AD military and bought a home here. My place is basically a live-in flip and I’ll roll the proceeds into my next purchase. I won’t keep this place as a rental and the price to rent ratio doesn’t support cash flow.

I recommend purchasing a home that meets a couple criteria (above and beyond your family’s needs):

- cosmetically dated (needs new paint, carpet, light fixtures, etc).

- No major repairs, assuming you're using a VA loan.

The idea is to do a live-in flip, doing much of the work yourself overtime.

Note, TX allows for a homestead exemption on your primary residence—thus lowering your property taxes. Just have to fill out the form and apply. This exemption is supposed to lapse when the property is no longer your primary, however I consistently see the exemption applied to formerly owner occupied properties.

There does seem to be a cottage industry here regarding protesting property taxes. You can do this yourself or hire a service. I don’t have first hand experience with this yet.

Not sure your family situation, but schools was also a major factor for me. San Antonio is a large city, but your school choices are somewhat limited (in my opinion). If this is a factor you’ll quickly narrow down areas to look.

Have you considered house hacking? Would be a great option if you can squeeze your family in to a place!

Feel free to send me a message and we can talk about the area more. Heck, I’ll even drive by a place if you want. I’m glad to help and any reason to look at houses is a good one!

Best of luck and keep us posted!

-Andrew

@William M. I haven't used any of these tools yet, only having recently begun looking in to them.  I did see that as a BP Pro member you get a deal on AirDNA--a cool tool with tons of analytics. Check out the perks section for more details.

  A few pricing tools I've come across; BeyondPricing and PriceLabs. There are a bunch of others out there too.  Most of the tools seem to charge a nominal fee, so might be good to test a few.

  There are also some great tips on pricing in BP podcast 229 with Zeona McIntyre: https://www.biggerpockets.com/blog/biggerpockets-podcast-229early-retirement-short-term-rental-properties-zeona-mcintyre/

 Hope that helps.

-Andrew 

@William M. I like your detailed approach to pricing your STR. How do you approach dynamic pricing? Meaning, adjusting the nightly price to account for seasonality or major events in your locale?

 Also, have you taken a look at any dynamic pricing services?  I haven't used any myself, however I've seen multiple examples of users that claim a sizable increase in revenue after employing a dynamic pricing software solution.

 Keep the updates coming!

-Andrew

@Sheila Campbell check out the latest BP podcast episode 333 with Ken Wimberly. Ken is a very experienced commercial realty broker and specializes in shipping centers. Lots of good stuff to learn in that episode. https://www.biggerpockets.com/blog/biggerpockets-podcast-333/

At one point Ken mentions a white paper he wrote on common items to review when evaluating a shopping center. He said he’d provide the paper to folks for free. Certainly worth checking out!

Best of luck and keep us updated on how things go!

-Andrew

@Travis Daudelin cover the floors while you own it property as a rental. Refinish the floors when you get ready to sell the place. That way you’ll only incur the refinishing cost once. Just budget for the expense as part of your reserves.

In the meantime the carpet idea seems to be a winner, and easily replaced when dirty/damaged.

Best of luck and keep us posted.

-Andrew

@Melissa Quintanilla Hadley, do you still have this MHP for sale?  If so, I'd like to discuss it. Please feel free to message me directly.

Thanks in advance!

-Andrew