All Forum Posts by: Bob Willis

Do you really think gas prices are going to stay like this forever, or even for the long-term? If that is your only concern then stay. Also, what Nathan says above is spot on. One last thing, what are the prospects for long term appreciation beyond cash-flow, that should be part of your calculus?

Let me know when and I'll be there. I've been in STR since 2016. Currently have two, a small one I manage myself and a larger one I have a property mgr run down in Phoenix (I'm based in Nebraska). Looking forward to this.

Hey Guys,

I am looking for some creative ideas to see if we can make a deal work here...

Here are the vitals:
4-plex, built 1980, in very good condition for age and area.

Asking price $325k

all units, 2BR, 1 BA, ~1000sf. with an additional 1000 sf of unfinished basement in each unit which could be converted to additional 2BR, 1 BA. All units are month to month, with two of the units being rented by same tenants for 20 years...

Also, comes with four detached garages, no extra charge for these.

Tenants cover utilities, EXCEPT water, which runs ~$250/month.

Taxes - $5000/year

Insurance - $3,000/year (estimate)

Current rents are well below market.

Unit 1 $500/month

Unit 2 $550/month

Unit 3 $600/month

Unit 4 $600/month

There is a VERY strong rental market in this community. 

I believe all four units could bring $800/month, with a potential for another $75/month for the detached garages.

Unit has been on the market since last summer. Needs a new roof, which current owners are replacing this spring.

I have the ability on making a full cash offer, but don't want to do that. Any thoughts or suggestions on the best approach here (some owner financing, etc)...

Thanks,
Bob

@Deanna O., @Dave Poeppelmeier, @Ashley Herring, @Karl B., you've given me my marching orders. Thanks very much.

My wife and I are in the process of closing on a house that will be lived in by our son while attending college. It is a 4 BR, 2BA. We plan on trying to find some other students to live with him while there. He will act as our eyes and ears of course. We currently own five rentals and have a solid tenant screening process, but this specific situation is new to me. I'm just wondering do we set aside the credit score and income requirements since these are students? We are only listing the property through the university, so there will be no non-students applying. Do we run the credit score and income through the parents and make them sign the lease? Curious about if anyone has any history with a situation similar to this.

Thanks

@Johnathan Boyle listen to this podcast - it will guide you https://podcasts.apple.com/us/podcast/biggerpockets-real-estate-podcast/id594419649?i=1000466828441

Listen to this podcast where they talk about mentoring (and a lot of other good stuff) - https://www.biggerpockets.com/... Specifically - 

• How she learned the development game by apprenticing under an experienced investor

I believe Brandon Turner would say - do not rent to them.

@Greg Dickerson - so you bring up an interesting point. I would contribute the capital and some labor etc, the partner would contribute contracting/building expertise. If we take that contracting portion as a separate line item and compensate accordingly, what is the point of having them as a partner rather than just a contractor? I understand there is risk to everyone in these deals. As I said I want to be fair. I am trying to understand the proper and correct structure of the relationship. Any thoughts around that? Thanks

Hey All - I have an opportunity to partner with someone on a flip. This person would provide the construction and project mgt portion of the deal, while I would provide the financing (and some labor). Is it fair to assume a partner structure as simple as, I provide the money, he provides the construction expertise, and we just split the profits? Just curious how most handle this type of arrangement.

Thanks,
Bob