All Forum Posts by: Brian Warren

@Mike Verna thank you all so far I have done my research and feel comfortable and confident in my knowledge so far, lots of books, audio books and articles online, I’m lacking the actual real world experience at this point, i am flying out to location on Sunday and meeting with an agent I have been working with over the phone for months. I will let you guys know how it goes. Any real world advice is much appreciated. Do you all self manage?

@Chai Xiong where are you guys currently investing ? And are you doing it all yourself or using property management? My original thoughts where to use property manger for first year then take over once I get the feel for it.. I want to stop working my current job and use this for my retirement

@Chai Xiong Well I have been researching everything about getting into vacation rentals for the last year. I have been looking for something I can count on as an investment I don’t care so much about actually using it for myself. I have made a few offers on properties over the last few weeks but the deals fell through due to issues, foundation or whatever. I guess I am getting mixed advice from people. Some stay stay away as far as you can from vacation rental. And others have made great money. I am doing my due dIllagence And working out all of the numbers and feel pretty good about the offers I am making but I’m just worried that I am missing something. I am being very picky about the properties and locations I choose

Looking for some advise or feedback from anyone that is or has done short term vacation rentals, I am working on a couple of deals that should produce a decent cash flow but would just like to hear some personal experiences. Thank you

@Bjorn Ahlblad well this is a bigger project than I intended on taking on.. the numbers work everyway I work it... problem is I don’t have enough investors so cash out of pocket would be more than I would like. Cost of work to do value adds also would add up.. its a low income building so it’s never going to be “nice” but can definitely get more rent as it sits, $50 per unit as they turnover, the 5 retail spaces are vacant and would need rehab but those are just sitting loosing money. A lot of the value add has been done, And done properly. All tile floors setup to be very low maintenance. old bIIldIng but most of the major work/ repairs have been done. Building is very near a redeveloping area, in 5-10 years should be a much nicer area of downtown, but they will still be low income apts. Its unique in the fact that it is surrounded by new buildings so it is its own ecosystem, if that makes sense.. problem is that ubless you dropped serious money into it its always going to just be what it is. low income. very small spaces, would have to empty entire building drop 100s of thousands on it and re rent with new image.. I am looking into getting more financial backing, if I purchase I don’t want to drag out the value adds I want to get it done raise rents and flip in 1-2 years unless I like the cash flow at that point. But I think I would rather be in, increase rents increase value then get back out before any major work needs done. It would cash flow positive as it sits after mortgage, taxes and insurance.

there is value add for sure but they are all small apartments so won’t increase drastically looking at $50 per apt prprobably at most in the near future. Mostly paint carpet and some common space clean up. 

There are 4 retail spaces also that are being very underutilized 

This is a 50 unit building with 4 retail spaces

I know there is value add and plan is to flip in 1-2 years but need to have positive cash flow from the get go and it seems to be doing that before I do any work.

based on smaller similar sales 7%-7.5%

From what I can tell, people have been reaching up and buying these buildings fast and for more money than I or my agent expect. 

I had a deal in front of me and need help determining if this is a good value.... It is a low cost low income building. I have a break down of all the numbers but I’ll just throw out the basics Gross rent is $234,000 on an upward trend producing closer to $22,000 a month last 4 months, seller has been clearly cleaning things up a little before selling The balance sheet that they gave me shows $98,000 NOI but they do not have property taxes listed and makes me wonder what else that they left out.. But either way that should still keep the NOI above $90,000 The asking price is $800,000 Looking for advise from some experienced investors Thank you

I am new to taking on investors and am looking for ways to structure deals. Wondering what most people do for this? % of equity based on % of money invested?

Looking at purchasing vacation rentals And also some local multiunit properties locally

I have potential investors but not sure how to structure the deals Thank you