All Forum Posts by: Phillip Brown
Phillip Brown has started 4 posts and replied 8 times.
Post: Lawsuit time! A reminder about risk management for your STR
- Real Estate Agent
- Kitty Hawk, NC
- Posts 8
- Votes 4
Would love to see how this plays out. Other than keeping up with the property is anyone else doing anything that helps protect themselves as the owner in these situations?
Post: Top 3 Stores I Use To Buy Furniture For Airbnb Properties
- Real Estate Agent
- Kitty Hawk, NC
- Posts 8
- Votes 4
Quote from @Steven Foster Wilson:
Quote from @Bailey Kramer:
Here are the top 3 stores that I use to buy furniture and supplies for Airbnb Properties
1) Wayfair
2) Target
3) Amazon
Every house is going to be different along with the types of travelers you are targeting. You will adjust your furniture buying based on the clientele you are serving.
I have heard a lot of Wayfair items have not held up too well. Have you found that to be true? How often do you have to replace furniture?
We use Wayfair too and it has held up great. It really depends on the item, I spend time to read reviews too. We have saved thousands using amazon and wayfair for window treatments, light fixtures, bedding, etc...
Post: How to maximize a short-term rental's cash flow
- Real Estate Agent
- Kitty Hawk, NC
- Posts 8
- Votes 4
Quote from @Eliott Elias:
PRICING! Price right so that you don't have a day vacant, when things are slow drop the price, if you have a two day gap adjust for it
Agreed!
Post: Property Management or Self-Manage?
- Real Estate Agent
- Kitty Hawk, NC
- Posts 8
- Votes 4
I agree with the others above that being so far away I would keep the PM. It will be a headache if cleaners don't show up, or you need contractors etc...We still have a PM being located in the same town. We look at our numbers and what it costs us hourly to take on the job of managing it and if our time is better spent elsewhere.
Post: Long term multi family in Warrenton Virginia
- Real Estate Agent
- Kitty Hawk, NC
- Posts 8
- Votes 4
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $750,000
Cash invested: $65,000
Multi unit property, 2 homes on the lot. Front house rents for 2500 back house rents for 2200. Mortgage/insurance is 4000.
What made you interested in investing in this type of deal?
Rare multi unit property in my market in an area that is seeing good appreciation.
How did you find this deal and how did you negotiate it?
MLS, Negotiated with the agent, the home had multiple offers. We were not the highest, but kept terms favorable to the sellers.
How did you finance this deal?
5% down conventional financing. We have family members renting 1 of the homes, so we were able to use regular purchase financing and only put 5% down. So our monthly cash flow is low, but our initial cash invested was also minimal.
How did you add value to the deal?
flooring, paint, waterproofing, appliances.
What was the outcome?
sustainable long term rental
Post: Short Term Rental in OBX
- Real Estate Agent
- Kitty Hawk, NC
- Posts 8
- Votes 4
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $630,000
Cash invested: $100,000
Vacation rental in Corolla, NC. Found through MLS. Sellers listed with only 2 photos, photos showed the home to be much worse than it was. We offered day 1 on the market with a timeline on the offer.
Property is 3/2 on 1/2 acre with a pool in a great neighborhood
What made you interested in investing in this type of deal?
we had proof of production from family/friends in the area. We knew we wanted a beach house as a short term rental investment.
How did you find this deal and how did you negotiate it?
Found it through the MLS, negotiated on day 1 on the market with a timeline on our offer. This was May 2021 and the property was poorly marketed.
How did you finance this deal?
Second home financing, conventional loan
How did you add value to the deal?
Paint, updated decor and fixtures, added pool heater
What was the outcome?
House has great short term rental income, Pure cash flow of just over 10k a year.
Post: Warrenton Va single Family purchase
- Real Estate Agent
- Kitty Hawk, NC
- Posts 8
- Votes 4
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $325,000
Cash invested: $72,000
Rambler on 1/2 acre in a good commuter location, near established rentals.
What made you interested in investing in this type of deal?
With the BP calculator, I knew it would cash flow well, and it is in a great commuter location that is experiencing good appreciation.
How did you find this deal and how did you negotiate it?
Found it through the MLS, offered on it within 2 hours of it being listed, set a timeline on our offer. Sellers accepted within 24 hours.
How did you finance this deal?
20% down conventional investor financing
How did you add value to the deal?
updated flooring and paint
What was the outcome?
Long term rental, mortgage is 1400. First year rent was 2250, second year rent has increased to 2500.
Lessons learned? Challenges?
This one worked out, but might be more weary of properties on septic as a long term rental.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I am licensed in this area, so I represented myself.
Post: Fredericksburg VA TH buy and hold
- Real Estate Agent
- Kitty Hawk, NC
- Posts 8
- Votes 4
Investment Info:
Townhouse buy & hold investment.
Purchase price: $159,000
Cash invested: $11,000
Purchase Price: 159,000
Financing: 20% down Conventional
Closing cost: 4,000
Repairs/upgrades: 7000
Total Cash invested: 42,800
Mortgage/Taxes/Insurance: 780.00
HOA: 70
Rent: 1,500 3 year lease
Cap exp: 5% (75)
Maint: 5% (75)
Cash flow: $528.00
Cash on Cash: 15%
What made you interested in investing in this type of deal?
unusual to find a town house at that low of a price in the area that we wanted to have an investment property.
How did you find this deal and how did you negotiate it?
Through some contacts at a senior care facility, the seller wanted to move in to the facility but needed to sell quick for that to happen.
How did you finance this deal?
20% down conventional loan
What was the outcome?
bought in October 2019, rehab took 6 weeks, renter moved in Dec 2019, signed a 3 year lease.
Lessons learned? Challenges?
Contractors were unreliable, it was outside the area that my go to guys service and I had a few bad experiences with the contractors I started with.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
My wife and I run a team in Northern Virginia, so I recommend us!