All Forum Posts by: Blake Billings

Hey BP Community,

I am using the Bigger Pockets calculator and trying want to understand the annualized return. I don't understand why the annualized return percentage peaks at year 3 and goes down after that. I am cashing in on all my equity in the back half of the 30 years so why does my annualized return drop? 

Thanks in advance!

Hey Derrick,

It looks like nobody responded to your post here, but I am looking for the same thing (now 4 years later). I was wondering if you have/found anything you could share.

Hey BP Community,

I would love some help getting my hands on some pitch decks, slides, or presentations for raising capital from potential investors. I currently have 5 units that I purchased with my own money, and I am now turning to friends, family, and colleagues to raise capital for future purchases. 

I have an understanding of my numbers, capital needs, etc. but would love to see a few example presentations or PDFs that folks have put together to get my juices flowing. If you have a presentation you are willing to share or know someone who does please let me know!

Thanks!

Hey Bigger Pockets Community,

I own a couple homes in OKC that I use for STR. 1 is a recent house hack of a duplex and the other is a former house hack that we just moved out of (was a SFH that we rented a room out for airbnb).

It was recently brought to my attention that I need to consider a home sharing license to rent them as STR. I initially started by just trying it out by renting out a room in our house, and I never thought much about it, but now that it has gotten a bit more serious I want to make sure I am legal.

Both homes are in historic areas of OKC. According to the OKC city website a special exception from the Board of Adjustment is needed. I was wondering if anyone had experience going through this process and had any recommendations? 

Thanks!

@Ben Scott honestly I need to look into that. Since it was just a room as my personal residence I never thought about it. Went ahead and added that for my to do list next week and will update you.

@Account Closed the entire home concept has worked very well, but it is more work and is not as easy to book honestly. The room we offered was a very nice room (as it was the master suite in my own personal residence). My take is that there is more demand for a low cost nice place to stay for a party of 1 or 2. Where as there is a smaller demand pool for a house that sleep 8 or 10 or 12. 

Overall it generates more revenue obviously, but the beauty of a house hack is that it is hard to fail and that was definitely the case when we were renting out the room. But a whole house has been much more competitive and requires a more disciplined system and approach. 

Investment Info:

Single-family residence buy & hold investment in Oklahoma City.

Purchase price: $242,000
Cash invested: $13,000

Purchased the house to live in it initially and try Airbnb. The house had an add on master suite with a private entrance. We blocked it off from the rest of our house and rented it as a single room with no kitchen access. We were very impressed with income. After 1 year we moved to a duplex (to househack again). Currently operates as a single Aribnb

What made you interested in investing in this type of deal?

Beautiful home, nice neighborhood, with potential for house hack

How did you find this deal and how did you negotiate it?

MLS

How did you finance this deal?

Conventional loan with 5% down. Seller covered all closing cost

What was the outcome?

Worked well as a house hack, now as a 4 Bedroom airbnb it is performing very strong, although we are in the early stages.

Lessons learned? Challenges?

2 major lessons
1. When it was a single room airbnb guest expectations were much lower. When we turned it into a full house we learned quickly we needed to step up the cleanliness, instructions, pictures, etc.
2. Would highly. recommend a garage apartment, MIL suite, etc. as a soft intro to Airbnb. Revenue was strong and minimal headache.

Yeah I do. The distance and property management was tricky initially and the appreciation isn't anything to write home about, but can't argue with the CoC numbers.

Investment Info:

Single-family residence buy & hold investment in Shawnee.

Purchase price: $62,000
Cash invested: $17,000

SFH in Shawnee Oklahoma. It needed cosmetic repairs. It was on the market for a while so I made an aggresive offer that hit my numbers.

How did you find this deal and how did you negotiate it?

Found it on the MLS. Negotiated repair and closing cost in purchase price

How did you finance this deal?

Conventional Financing, 20% Down

How did you add value to the deal?

$8,000 in repairs. New floors, touch up paint, etc.

What was the outcome?

18 Month lease at $900+ a month

Lessons learned? Challenges?

This deal pushed me over the edge to get a property manager. Best decision I could make. Removed all my headache and got higher rent faster than I could have. I think this ended up saving me money in the long run.

Hey BP,

I am looking for advice on how to structure a partnership. JV or LLC as partners. What are the Pros and Cons, implications, etc.

I currently have 5 units that I have acquired over the last 24 months with my own capital. Not that I have my feet under me and some experience I have some partners who are providing capital while I am using my experience and contacts to locate, negotiate, rehab, and manage the properties. 

My ideal structure is to for my partners to provide 90% of the capital while I provide 10%. And then we split Cash Flow and equity 75%-25%. I would like to have authority to make day to day decisions but we would agree on a framework for major decisions, exit options, etc. 

I have talked to a couple local investors and 1 partnered via JV and another through LLC. They helped me understand how they structured it but I am trying to figure out which of the options is best and why.

Appreciate the support ahead of time.