All Forum Posts by: Bill B.

I can’t give you a Boston specific answer. In Las Vegas it can be called a mother-in-law suite or as DR Horton advertises it a “Next Gen Suite”. They charge an extra $30k. But it’s still a single home with the total beds/baths. This is all assuming the suite gets its own entrance. If it can have its own laundry that’s another bonus. 

You can either put a regular door between them if you don’t plan to rent it out. Otherwise you either put a door with two locks one on each side (like a hotel suite), two doors each with a lock on their side, or if money is tight just a lock on the suite’s side. 

Ps. Make sure it’s allowed. Many people have posted about buying homes where a second kitchen was added and they had to tear it out. 

Happens all the time. Especially with condos and townhomes considered condos. Happened to me in Vegas and MN. They’re either leaving the market, or the property type. Try Allstate. They cover 12 for me. 

What if the buyer who “beat you” offered even more than $182k? I assume they did right? Hardly the kind of thing that would make me consider taking $20k less. 

The seller’s realtor is doing a Sh!tty job. They should have reached out to you the second the deal started to fall through. (Unless there was a third offer that was also higher than yours?) heck they should have accepted back offers form the get go. 

If you were willing to pay $182k before, why aren’t you willing to pay $182k today? Will you be happy if another buyer gets it’s for $179k?

The only leverage you’d have I can see is if it was occupied while for sale and now is empty. It was always empty or is still occupied, the other “buyer” anchored the seller even higher. 

As mentioned. Have your realtor reach out and ask what happened. If they found an issue with the property the seller is required by law to disclose it. If the buyer just flaked or life happened those aren’t tempting reasons for the seller to lower the price. But if you don’t hurry you might it back under contract at $182k from another buyer who thought it got away, or one that thinks it’s easily worth $179k since you thought it was worth $182k. 

Is there anyway you can wait until it’s empty? Or at least until you have them down to MTM and can get them out in 30 days? (Let the tenants know ASAP.) You are disqualifying 90% of the buyers who are looking for a primary home. (Unless you can deliver it empty in 30 days, then tenant or owner occupied makes no difference )

You will EASILY get 5-20% less for your home if an owner occupant can’t purchase it. You’re going to lose 6 months to two years of rent, you just won’t see it. 

Of course it was @Eric Fernwood. I shoudla known that.  

“Bank-Owned Properties Rose 34% Nationwide”

I heard from some clients who had concerns about the "large number of distressed properties." Below is the actual MLS Las Vegas data for single-family homes in the Las Vegas metro area. (In 2023, there were 572,900 single family homes in the metro area.)

• Bank owned (REO): 9 for sale. (or 0.0016% of all homes)
• Short sales: 15 for sale. (or 0.0026% of all homes)
• Foreclosure started: 18 for sale. (or 0.0031% of all homes)

The article title was simply clickbait. Each location has its own unique market conditions, and national averages do not reflect the reality of any local market.

Link to the entire post and someone to follow if you’re investing here  

https://www.biggerpockets.com/forums/921/topics/1258489-augu...

If you search the forums Vegas market update someone did a market report for last month. I THINK the number for the entire valley was under 10, or maybe under 100? It was some fraction of less than 1%. 

@Andrew Street brought up a good point. If you get hit with a $10,000 or $20,000 fine for STR violations, it will be assessed against you or the property. NOT the operator. I guaranteed they will cut bait and run if that happens. You NEED personal guarantees from people who have the assets to be sued to collect against this risk. Not the company with no assets and not the person "just getting started" who will just declare bankruptcy.

Have a friend neighbor co-worker relative sign a lease for $1 and get electricity in their name?

Ps. I have to ask. What did you mean by “Lending you electricity”? Are you running a solar farm?

You still require renters insurance. You get THE name or names or the EXACT people who will be living in the property. (So you don't find out later they turned it in to an illegal STR renting to strangers.Which would probably invalidate their insurance and yours.) And you get a personal guarantee from every owner/executive of the company. Otherwise they can walk away at any time leaving you stuck with a tenant with a valid lease you can't evict but isn't going to pay. You assume they chose your property because you're not using a property manager right? Someone who would either not allow it or hold them strictly accountable.

Which reminds me. Make sure the “tenant” also signs the lease that has all the rules and requirements. You don’t want a tenant that didn’t sign a “No Horses or smoking inside the property.” Portion of the lease. They only have to live by the rules on the lease they signed. 

I assume you have GREAT insurance or nothing to lose in a lawsuit. You’re going to let people you haven’t vetted party in your property. I sure hope none of them are underage drinkers who later crash and kill someone. 

There is ZERO chance I would do this. Why do you think they're using your property? They have nothing, or they don't want to lose anything. You'll be the target of any lawsuit. If the city outlaws STR the next day, how many more months of rent do you think you'll get? I'll give you a hint, that "company" you rent to will have $5 in its bank account.

If you want to run an STR get the right insurance and get maximum leverage on your property and run it. If you want to do MTR or LTR do it. Don't farm it out to someone with nothing to lose who can quit anytime they want.

Ps. Remember your current insurance won't cover you, that's for a regular rental, not an STR.