All Forum Posts by: Brian H.

Karen thanks for the reply. I don't know if there's a demand for this right now; I'm just gathering info. I do know that there will be thousands of retirements at the major airlines in the next few years, and those seats will be filled by pilots currently at the regional airlines, like the one with the large crew base in my hometown. It will have to do a lot of hiring of its own to make up for the mass exodus to the majors and those pilots will need somewhere to stay.

There would never be 12-16 people in the house all at once. I used a crashpad myself for about a year and though it had eight beds, there was rarely more than 2 or 3 pilots staying there on any given night.

Accidentally posted this before in the mobile homes forum...so trying again.

Does anyone have any experience renting out houses as crash pads for flight crews? There's at least one large regional airline and a major airline with crew bases in my town and I'm wondering if it would be lucrative to buy a home with 3 or 4 bedrooms and rent the rooms out with bunks (4 to a room). Am curious what other issues I should be considering besides things like zoning, insurance, parking, additional maintenance/repair expenses, etc.?

Btw the subject should say "crash pad housing", not "crashed housing". Autocorrect strikes again...

So if I may try again, using the above info combined with that from the original post:

$3665 * 12 mos. = 43980 annual gross income
Using the 50% rule we arrive at $21,990 (taxes, insurance, maintenance, holding costs, vacancy, property management, other expenses...?)

$1090 * 12 mos. = $13,080 annual Principal + Interest (debt service).

Debt service plus expenses = $21,990 + $13,080 = $35,070

$43,980 gross income - $35,070 total operating costs = $8910 net profit at the end of the year, or $743 per month.

And to take it further, $8910 profit/$56000 invested ~ 16% cash on cash, approximately what Scott W came up with.

I'm ready for my browbeating but hoping this is a little more accurate than my first take.

I think you're being a bit harsh. So the analysis was flawed...in my case I was tackling it as a learning experience and it certainly was that. I apologize if I ruffled feathers but a bungled post-deal analysis isn't the same as a bungled deal...no one died here and nothing anyone says on this forum changes the actual facts of the deal. I'm happy to be mistaken since I apparently wasn't given you as much credit for the deal as you deserved. Glad that's the case and not the other way around. Btw I hate to speak for Manuel but from his post it appears his intentions were the same.

Steve and Andrew O, thank you for the correction, and for the link. Won't make that mistake again!

Not 100% how your occupancy of the one unit will affect the cash flows overall. Obviously you won't be collecting as much rent but then you won't have as high expenses for that unit either, as you'll surely take better care of it than any tenant would. Hopefully someone smarter than I can chime in and give you a more thorough assessment.

I'm still learning the ropes of property analysis myself, but I'll take a stab at it. Your gross rents collected at the end of year one will be $3665*12 = $43980. Using the 50% rule, your net operating income (NOI) for the year will be 43980/2 = $21990. Your total payments (PITI)at the end of year one will be $1970*12 = $23640. Your cash flow is NOI minus (-)PITI, or 21990 - 23640 = -1650. You have a slight negative cash flow here, or approximately $138 loss per month ($1650 /12 months). Not necessarily a losing deal from my perspective though. Just a slight decrease in expenses and/or a small increase in rents will push you into positive territory. Doing all this on my phone so hopefully my math is right.

Thank you James. And you're right, I did neglect to introduce myself before. Just took care of it :)

Not my first post, but I neglected to introduce myself before and I don't want to be rude, so here goes. I'm Brian from Louisville, KY. I began acquiring SFR's in 2001 and did ok for a while, all things considered. I didn't have the foggiest idea what I was doing and I REALLY wish I'd stumbled across this site back then before I got myself in hot water. But, long story short, I found myself way over-leveraged when the recession hit and took a bath when the markets (I had three rentals in three states) tanked. But, I'm still here and just crazy enough to try again. I'm confident that I've learned from my mistakes and can't possibly do any worse the second time around...and with any luck maybe this time I'll actually come out ahead.

For now, I have one property that I've tried to sell with no luck, and I've just about decided to bite the bullet and just rent it out again so that I can move on with my other investment goals. For now I'm interested primarily in learning the ropes of wholesaling distressed homes and studying the market for SFR's in the Louisville and Lexington metro areas (I've lived in KY seven years but this will be my first time investing in those markets). Thanks for reading and best wishes to each and every one of you.

Ah good then let me add my welcome while I'm at it :)