All Forum Posts by: Brook Rieman

We purchased a run down property last month for cash with intention of making it livable and renting it. There is a HUGE demand for rentals in the area and we had over 100 inquires by prospective tenants in a matter of days. We rehabbed the interior and got a tenant in place (lease started June 1). There are issues with the exterior (rotted wood around the windows, needs roof/gutters soon, new windows, siding). As soon as we bought it, we insured it with our usual company. Now, one month in, we were notified insurance is being cancelled due to condition of exterior. We have plans to update these things over the next year but not right at the moment as we are currently navigating purchasing a primary residence at the moment. Do we have any options? Is it possible to get just liability insurance on a rough property? It was cheap enough I think we would be willing to skip replacement if that was an option. Our own insurance company said it’s too late now, even if we managed to make all of the repairs in the next month (not possible anyway due to timing), they probably wouldn’t re-insure. Anyone have any ideas to throw our way? 

Up until now, my husband an I have been the sole owners and manager of our STRs. In order to scale, we are thinking about partnering with my dad on a new STR property. My dad would bring the down payment and his credit would secure the loan. I'm struggling, wondering what kind of profit sharing would seem fair in this type of arrangement? I would do all of the booking, managing, laundry and arrange cleaning. My dad would be the financial side of things.

I have a designer friend who is just getting into this. PM me and I'd be happy to share her info. 

Just so I understand, other places are renting for: 1100-1500? Your calculator shows you plan an income of 2500.

I would suggest doing yourself a favor and starting with Quickbooks off the bat. If you get into real estate investing for the long haul your life will be so much easier. I would suggest looking around for an accountant to help you set up your company file and show you around QuickBooks. I did this many years ago, did a one-time session with someone, I think I paid around $200. 

Congratulations on diving in. It’s a fun ride! Welcome.

It seems like a good deal to me. Are you pretty confident you can get that rent? I agree with the other commenter about figuring in property management just in case you tire of managing yourself. 

Hi Jacob! My husband and I are doing REI in Bloomington, so not terribly far from you. Happy to chat sometime if you would like.

Have you tried looking on TurnoverBnB? 

Congrats on the property! Getting the first one is have the battle. It’s scary to jump in, but I promise you will be hooked. I would definitely add that wall to create a bedroom. If you post some pics, I might be able to give you some thoughts on where to concentrate  Reno money to up the value.