All Forum Posts by: StacyA McBain

Thanks for the great info @Jerry Padilla!

Lending intricacies have a huge impact on investor purchases and I expect I'll be referring back to your updates more than once.

HI @James Midgley

Welcome! You're very welcome to check out AVID Investor's Club as well.

Shoot me an email to the email address on my profile if you'd like an invitation. 

Happy investing! 

Stacy

Welcome @Colby Bradley, 

You're in the right place, as @Jonna Weber has said (thank you for the mention Jonna!). Word of mouth is the most effective form of "advertising" and investor groups are indeed a great place to network, learn and put effort toward success in real estate! PM me if you'd like an invite to AVID Investors. 

Happy investing! 

Stacy

Hi Hannah, 

I have one studio vacation rental that I've run for five years or so. The maintenance costs are much higher for a vacation rental than a regular rental, since the owner, not tenant, pays all the utilities, internet, yard maintenance and general maintenance. That said, it should net you a bit more net income and a lot less passivity.

Your expenses will affect your returns. Air Bnb and VRBO is popular enough that you should be able to find rental comps for your area. A condo may pose more risks of neighbor complaints than a single family home and CCRs would need to be read to ensure short-term rentals aren't prohibited.

The more you charge, the pickier the guests and the more to budget for regular re-painting, new towels and sheets, etc. Remodeled properties rent for more, but there's certainly a market for budget properties as well. 

Occupancy rent, rates, etc will vary by area. I charge more for short-term than for multi-month, but a 50% vacancy would be safe to budget in my scenario.

Pets will be a frequent request, so you'll need a policy. Our studio has no yard, so we don't do pets, or incur that exterior maintenance cost. We tend to make an exception for long term rentals (one to three months, which we accept during the off-season). 

In summary, this is by no means a passive endeavor - it nets a little more money and a lot more effort. There also are management companies that will handle it as well for a 25% - 35% fee. 

I recommend being clear about what you include and what you exclude, and having multiple cleaners you can call to help with turnovers, and putting all mattresses in moisture and bug-proof mattress bags.

Good luck!

Stacy

@Michael Key

Welcome to Boise! Let me know if you'd like more info about local deals, market returns here, and/ or an invite to AVID Investors Club (we present market updates there as well). Local investor forums serve as effective ways to check out the area - AVID isn't the only option. We meet this Wednesday.

Happy Investing!

AVID Investors is a FREE, invite-only, Idaho Real Estate Investor's club. Beverages and bites included. Contact me for your invitation with location details. 

This month, Kelly Turpin of Swope Investment Properties presents "Do The Due."

Your due diligence phase is more important than ever in today's fast-paced market, which often requires motivated investors to submit offers without delay. Kelly not only has helped her clients, she also has tackled due diligence for our Broker Mike Swope and various partnership projects, and she's prepared to share it like it is. 

Due diligence may serve to strengthen your self-protection and your negotiations.

AVID Meetings are designed to be helpful from an education and networking perspective. Members tend to be buy-and-hold real estate investors of all levels. 

Contact me for more information on this Boise investment group - my email address and phone number are on my profile page.

Happy Investing!

Stacy

@Chris Kane

I was just looking into one that hasn't yet hit the market, and would be happy to share some details. I wouldn't know if it meets your criteria, but you're invited to send me an email if you'd like to see a draft proforma. It's going to be listed by another agent at Swope Investment Properties on the affordable end of 4plex pricing, due to age. My contact info can be found on my BP profile page.

Hi @Manish Prasad, 

I refer my clients to First Rate Property Management. Check out their web site - you can see their management agreement right there, I believe. They take good care of properties, in my experience. They negotiate better than market rates for flooring, plumbing and pro services, but the handyman rates may run higher than the open market since they only use licensed and bonded workers. Disclosure - I work with Founder Tony Drost at Swope Investment Properties (but I wouldn't refer his company if I didn't mean it). I also like the sound of RMA - Realty Management Associates - I've met their liaison, Claire Fenton, through AVID Investor's Club and like what I've heard. They offer partial services (e.g. finding a tenant only). 

Honesty and open dialog is indeed the best policy. It helps everyone set reasonable expectations. Also- all contracts are negotiable, including the representation agreement. You don't need 3 agents watching the MLS with you, but you may advise your agent that you would like any deals obtained through your wholesaler excluded from your representation agreement.

The flip side about dealing with listing agent directly, as Paul suggests, is that you don't have your own representative,  fully watching out for your best interest and helping you get the BEST deal. (The listing agent or a wholesaler is committed more strongly to you buying THEIR deal). The listing side pays the commission, which already has been negotiated with the Seller. There's no guarantee that a reduction in commission would occur or that it would translate into  Buyer savings, even if that agent is working on both sides of the transaction. 

The focus when shopping for agents easily shifts to commissions, however it's important to remember there is value, negotiating strength and expertise that a good agent will bring to Your side of the table - that can pay itself back quickly (especially if it's the seller paying the actual tab). 

Any agent who is not a strong resource and member of your power team isn't the right agent for you. That said, one agent you're loyal to could be a stronger member of your team than 4 other agents combined (in the same way that you'd be a better client for them than 4 non-loyal clients). 

Buyers often need instant or extra availability, knowledge, market expertise, rental market familiarity and help when a house of interest/good deal requires fast action, and on most days I can prioritize "dropping everything" for the folks who are truly loyal clients. Those clients also are the first who will hear about a deal from me, and will be top of mind as I monitor the market. With good deals being sparse, that's a decent position to play, at least from my perspective as an REI agent who started out as a very loyal client for my first ten deals.

Cash flow tends to be greater in mutlifamily properties here in Boise. True that number of tenants/tenant concerns are greater, but you also have less of a hit during vacancies, which are spread out. 

Being on payroll absolutely helps with loans - I recommend buying when employed so you can take advantage of the leverage that financing offers. 

Best of luck to you Joe!