All Forum Posts by: Aspen Jay

Hi Bradley Buxton! 

Thanks so much for your thoughts! We have the capital to weather the slow seasons and yes the mortgage is our biggest expense about 55%-60% not including taxes/insurance. The backyard is fenced and on half an acre so that could be a big perk for dog lovers. There is an office that is detached from the house that we could make super cute and promote as a private haven for people and do a few more fun things with the large space of the backyard. 

I've seen a few homes close by that are on airbnb that rent out a month at a time and they are booked for the next three months. So that could bump up the rent income to $3,000. I've budgeted in $20k for startup costs of furnishing and other misc items. My relator never gave me specifics, so I should ask that, I assume just from the profit he is making on his airbnbs. I would think he would factor in my interest rate is quite a bit higher than his. Vacancy rate is between 56-64% in the area and surrounding.

Hi! 

Just went into contract on a home (3 bedroom/2 bath with an outbuilding in the backyard with power) yesterday before doing solid number calculations (I relied heavily on my agent making the mistake of not doing my own due diligence, even as a rookie, I should have known better!). 

Using the biggerpockets calculator, the numbers just aren't weren't adding up. Cashflow wouldn't happen until year 6. We planned on using this as a STR and were expecting 50% occupancy. Talking to my agent, who has three of his own short term rentals in the area, tells me, my calculations are ultra conservative and the numbers do add up for this area. House values in the area have increased about 5% the past year and the Greenville area and surrounding areas are rapidly growing.

The monthly expenses (including utilities and 5% for repairs and 5% maintenance) come out to $2,291. A long term rental in the area would rent for about $1,800 a month, so as a backup that wouldn't be a great option. STR with a 50% occupancy monthly income I'm guesstimating to be about $2,037. So a $254 loss. Granted as we built up momentum we could probably get it up to 60% (that's what my agent says he gets) or perhaps get some MTR revenue working with insurance agencies.

Where is the disconnect? He has done short term rentals, I haven't. He said it should start cashflowing in year one and that I will miss out on all that appreciation if I don't jump on this. Is this as good as it gets in today's market and I should move forward with this investment?

 My thoughts exactly Jay! Thanks for the reassurance! :) 

Hi everyone! Novice here, I've been looking into off-market deals but don't feel comfortable moving forward by myself. I have been working with an agent who owns rentals so is experienced and I trust his opinion, but he isn't the one finding me the off-market opportunities. But I still would love his help when I decide to move forward on one. How much % would you suggest paying him? Do I ask him what price he thinks or name a price first? Thanks in advance! 

What are your thoughts on converting a split level's bottom floor into a separate apartment? The upper dwelling would have three bedrooms and two bathrooms. The bottom area is big enough to have one bedroom, a kitchen/family room, and it already has a bathroom. I would want to close off the stairs from the main level to the bottom floor which could make it an interesting sell down the road. Any thoughts? This is a potential property that I am considering. The added income is not needed to make the numbers work, but I was just thinking of ways to get more out of the property.