All Forum Posts by: Ben Kirchner

I live in North Carolina, but have a lot of family in the St. Louis area.  Some in St. Charles, MO and some in Belleville, IL.  I'm expanding my search of rentals in this area.  I would be looking at properties remotely, and getting help from my family to be my "feet on the ground" to tour properties.  I wanted to get input from locals on the best rental markets in the area of St. Charles, MO and Belleville, IL.  

Thank you!

Ben

You've invested in Harnett and Cumberland counties, which are non-HUD homes? Can I ask what type of % rent you are getting as far as % of purchase price? Did you buy wel and/or do an extensive amount of rehab? I've been looking to expand my search.

I've been fortunate to get over 1% rent in 3 rental I have in Garner, but I purchased those well, as well as rehabbed.

Thanks

Ben

I'll be completing the refinance process of a house I've done the buy, rehab, rent, refinance (BRRR) strategy on. With that money, I'm looking to roll that into another investment. I'm not coming across anything even close to renting at 1% of purchase price in North Carolina. I'm thinking of my options finding something on HUD Homestore as an investment purchase.

Have any investors here had success purchasing HUD Homes as an investment, rehabbing it, and renting for a good return? Any difficulties or things to consider with this strategy? I'll be looking in the state of North Carolina. Therefore, looking for a house in a good rental market would be my focus.

Thank you

Ben

Thanks for the information every.  @Chris Martin - This is the first I've seen of this site you posted.  Thanks for that.  Is that a valued resource investors use?  I've previously been doing off of rentometer CMAs, and in this case airbnb.  Looks like solid data.

If I'm giving a loan to another party with specific terms agreed upon, what is necessary to make this legally binding?  The terms are short enough to fit on one document.  Not sure what else besides the terms needs to be included, and what is necessary for signatures (signatures, initials? , notary?).  Is there a service that people use for these agreements, or an attorney here that is able to review a single document for me?

My concern isn't necessarily about the Tiny Home.  It's more about the proposed numbers.  A Tiny Home rental warranting $150-200 a night on airbnb?  That seems like quite a stretch.

 @Mary K.- Yes on the utility hookups and septic. No on the HOA restrictions. With the proposed partnership being a 50/50 split, that is going to be taken care of by the other party. With our experience in Tiny Homes, what are your throughts on $50,000 for a 2Bed/1 Bath, 350sq ft newer construction?

Regarding the lots, I would likely be selling the lots to a builder.  Is there a general rule of thumb of what a lot should sell for in comparison to the home values of what it's surrounded by?  In these cases, houses are going for $250-350k?  Some even accross the street going for $500k, since they are right on the water (my lot wouldn't have direct access to the water)

Thanks for your feedback

I've been proposed a deal on investing in a Tiny Home, to be placed in New Bern, NC (Fairfield Bay). The person presenting me this deal is suggesting it could warrant up to $200 a night, through AirBnb. On the conservative side, at least $75/night. He's even suggested that with the recent hurricane damage in New Bern, there is no where to rent, and there. He suggests insurance company workers need to be stationed down there for months, and will need a place to rent. After the hurricane damage is addressed, he suggests it would market well for people looking for a week by the coast. The Tiny Home would be acquired for ~$50,000, and he suggests it could generate gross profit of $4000 a month. Accounting for 3 months vacancy, that's $36,000 a year.

Is this too good to be true?? Those who are familiar with the market in New Bern - please help me with this. Initially, I think - why would people pay up to $200 a night for a Tiny Home on Airbnb? He suggests thats the market in the Fairfield area. I would be funding the deal, and splitting cash flow 50%, while the other end is acquiring the deal, and handling the management, maintenance, and keeping it occupied. Since I would be using a HELOC to fund this, the gross profit would first address the HELOC monthly payment, then split up net profits from there. Since I'm inheriting all the risk by funding 100% of the deal, I'm not sure I'm not sure I'm comfortable, but am unsure on what else to have in writing to make it right.

In addition to this proposal, I've already purchased 3 lots in New Bern, which was presented me to this same person. I've purchased 3 vacant lots in zip code 28560. The intention is to hold onto these for awhile and sell in a 12-24 month period for a return on investment. Houses right by these lots are in the $250-$350k range. Anyone with knowledge of this area, do you have an idea of what is a reasonable expectation for a builder to pay for vacant lots in these areas?

I've been proposed a deal on investing in a Tiny Home, to be placed in New Bern, NC (Fairfield Bay).  The person presenting me this deal is suggesting it could warrant up to $200 a night, through AirBnb.  On the conservative side, at least $75/night.  He's even suggested that with the recent hurricane damage in New Bern, there is no where to rent, and there.  He suggests insurance company workers need to be stationed down there for months, and will need a place to rent.  After the hurricane damage is addressed, he suggests it would market well for people looking for a week by the coast.  The Tiny Home would be acquired for ~$50,000, and he suggests it could generate gross profit of $4000 a month.  Accounting for 3 months vacancy, that's $36,000 a year.  

Is this too good to be true?? Those who are familiar with the market in New Bern - please help me with this. Initially, I think - why would people pay up to $200 a night for a Tiny Home on Airbnb? He suggests thats the market in the Fairfield area. I would be funding the deal, and splitting cash flow 50%, while the other end is acquiring the deal, and handling the management, maintenance, and keeping it occupied. Since I would be using a HELOC to fund this, the gross profit would first address the HELOC monthly payment, then split up net profits from there. Since I'm inheriting all the risk by funding 100% of the deal, I'm not sure I'm not sure I'm comfortable, but am unsure on what else to have in writing to make it right.

In addition to this proposal, I've already purchased 3 lots in New Bern, which was presented me to this same person.  I've purchased 3 vacant lots in zip code 28560.  The intention is to hold onto these for awhile and sell in a 12-24 month period for a return on investment.  Houses right by these lots are in the $250-$350k range.  Anyone with knowledge of this area, do you have an idea of what is a reasonable expectation for a builder to pay for vacant lots in these areas?

Well, I have two properties with an HVAC that is over 16 years old.  My thoughts are to have a home warranty in place until these go out.  However, Total Protect Home Warranty just recently did anything and everything they could to not repair/replace my HVAC on another property, so I don't want to end up with another company that will leave me to replace it myself again.

@Jiri B. - Can you list the companies you would recommend against?  

@Aaron K. - Is there a reason you list First American as a consideration?

I have several properties with very old appliances.  However, I've had horrible experiences with both American Home Shield and Total Protect Home Warranty.  I am looking for a solid home warranty company, at least until the HVAC goes out. Does anyone have good experience with a home warranty company that they would recommend?

Thank you