All Forum Posts by: Bob Willis

 Now that's an answer I like.

 Did you value based on PadSplit revenue, or traditional LTR revenue?

 What you say here @Josh Bowser

 Yes - I have used them for multiple properties across states and in Arizona.

I own a house near a university where I rent by the room. I have had no problems at all in the four years I have done this. That being said, one of the rooms is occupied by my son so I have eyes in the house. But again everyone deals with me directly. I pay for utilities, wifi, and professional cleaning of the common areas once a month.

In addition, I have another property I have listed on PadSplit. If you are not familiar with it PadSplit is like Airbnb except for rent by the room (co-living). You should check them out, though they are not everywhere across the US. Good luck.

Renting by the room can work.

Hey All,

Quick question, this may be a standard strategy, but what is the best plan when you start thinking about retirement and you own real estate.

You can't eat equity. I know this, you know this, we all know this. So what is the answer to getting access to our equity for those of us who have some but don't really want to continue acquiring properties. I want to slow my life down a bit and enjoy the fruits of my labors (I had cancer a few years ago and I acknowledge my time to enjoy life is finite).

It occurred to me that I should just cash-out refinance my properties that are fully stabilized and that have significant equity, but that can also easily support the new debt incurred. 

For example, if you own a property with $400k in equity and you can still easily cash flow with a $300k cash out what is the down side to doing this? You just got handed $300k tax free. If you have multiple properties where you can do this, you can finance a very nice lifestyle and still retain the underlying assets.

Just curious the groups' thoughts on this?

Thanks,
Bob

 Yeah - I have an appraisal in hand for the property, that was completed just a couple of weeks ago, that is substantially higher than the asking price.

 Which most likely the 1007 will be nowhere near the revenue generated by a PadSplit operation. The specific property I am looking at right now is netting from PadSplit to the current owner  between $5k-$6k per month. I am guessing the 1007 would be around $2k/month for the specific property. So it makes me think this may not be the way to go. I guess my question would be, if that small pool of lenders is okay with PadSplit, why would they use 1007? That's comparing apples to oranges. I imagine the argument would be, well if PadSplit disappears we need to base it off this less, more conservative number...

I am interested in talking to someone about the process of funding via DSCR the acquisition of a property currently being run as a PadSplit. The plan is to keep operating the property as a PadSplit post-acquisition. What kind of seasoning is generally required as it relates to the rents/revenue as it relates to servicing the note, etc...

I currently own one PadSplit (acquired via Subject-to) that has been up just over a month. And the plan is to convert an existing Airbnb I own (and have run as an Airbnb since 2019) to PadSplit. This conversion will begin at the end of the month.

I am just sharing the above to give context to my level of experience with this type of investment.

I look forward to hearing from you all.

Trim the tree?