All Forum Posts by: Brandon Vukelich

Curious how our self-managed 3-unit STR/MTR performs with industry expectations. Front two units are full time STRs with a rear studio operating full time MTR. We're looking at 2024 gross around $187k with NOI at $107k. Seems a bit high on the exp ratio near 43% but we do pay a premium for our solid cleaning lady, she also stocks supplies, runs errands and other duties for no "extra" charge. No surprise but property taxes (up another 16%), insurance and utilities are all bumping significantly. Other than comps for 3-unit properties (which are typically not furnished and operating as STRs), how would most seasoned STR investors look at valuing the property?

I'm a MF broker working in the 2-20 unit space. I know seller financing and it isn't clear how you define "good" creative terms. Most sellers I know are stuck in 2021 pricing but want 2024 rates. If I have a deal with decent seller financing terms, it will be sold pretty quickly to one of my buyers and not to a wholesaler who can't prove they can close and/or they are the end buyer. You may find a deal for yourself to own but I'm not sure how many you'll have a chance to wholesale. Best wishes on your plans!

Hey Erik,

The Bremerton area has definitely experienced growth like many areas of the greater Puget Sound region. The downsides are that rental demand can ebb and flow with military and some parts around downtown can be a little "rough" with homelessness, junk. As you've been watching, tough to get into a duplex or small MF in King Co under $700k-ish. Kitsap and some parts of Pierce offer opportunities under $500k but it really depends on the neighborhood, property condition, etc. Most deals are going to look pretty challenging from day one as many are underperforming and have deferred capex needs.

I'm happy to help with valuations and rent data if you need it. Best wishes on your journey!

#4 in your top list never ceases to amaze me. If business is slow, plan a vacation. Business always tries to disrupt my vacation plans. I can plan trips a year out and it will likely coincide with an active deal that needs more guidance than my asst can provide.

I would add a #6 to your list of positives - FREEDOM! We do work crazy hours sometimes but my schedule is mine and there is no limit to the income I want to pursue. I can be lazy and earn $40k or crush it and go for $4MM. We don't operate within a salary cap.

@Josh Aljets I am familiar with the deal on M St in Tacoma. The Seattle-Tacoma market isn't great for cash flow day one, assuming you're trying to acquire for 25% down. Yet even if you pay cash, your CoC return is going to be sub 6%, give or take. Plus most of these are owned by small mom-pop landlords that little to no debt and have kept their rents low. It take 6-18 months to stabilize most properties due to the regulations on rent increases, etc. They will eventually cash flow but depends on how the deals are managed. Investors buy here because of strong jobs, strong rent growth, strong appreciation and the future cash flow but honestly many of my clients are playing the long buy and hold, appreciation game. They just want to break even-ish for the first 6-12 months. I know it sounds crazy or ridiculous but to each their own strategy.

Also, the duplex and triplex space in our area is filled with house hacker types. Their numbers don't need to work like non-owner occ investors like us. Any investors buying those are playing the long game, which most of us should be doing anyway. 

Best wishes on your investing journey!

My suggestion is to communicate being a "problem solver" vs a 1-trick pony like every wholesaler mailing "all cash, quick close" cards or realtors sending out "just listed or just sold" postcards trying to attract a listing. My message is more about offering a few options as I am a licensed broker + real estate investor. My options usually include the all cash/quick close to flip myself, listing it (as an agent) but also offering the seller to do a JV flip together, I could wholesale it, offer to buy it myself for a BRRRR or other long term personal investment, etc.

Other than that, I have done a separate "tired landlord" campaign targeting small multifamily properties that have been under the same owner for 10+ years. I usually get about one good hit/lead per 500.

Best wishes on your efforts!

Those are two very different paths. Not sure why you would want to shift at all. Sounds like you have found a lane that works and is growing. Stick with what has been successful for you and is enjoyable. It's too difficult to give much input without knowing your capacity to manage more, what's your end goal, etc.

I own STR/MTR and LTR properties. I'm not interested in growing many more STR/MTR. Those operate more like a hospitality business than a rental business. Plus as we all know, more cities all over are pushing for more regulations & limits. But if you love them, keep moving forward. Best wishes on your journey!

There are a few levers to pull to make seller financing work. You need to start by asking the seller what their true financial needs are out of the deal. Amortizing over 30 is usually fine but they will likely want a balloon (payoff) in the near future. Ask the questions...Maybe they want to avoid cap gains taxes so a small down would work. Maybe they want the highest monthly payment from you for 3, 5 or 7 years before your balloon is due. Maybe they want a large down payment for medical needs but are already so financially comfortable that they'll do an interest only at 5% for the first two years. 

You really shouldn't propose anything until you have a conversation and understand what the financial needs or expectations of the seller are in advance. Keep in mind, most sellers know that a money market throws off nearly 5% right now and the terms I see expected are not competitive with a bank. Many small MF owners say they want 20-30% down, 7-8% rate. Best wishes on your real estate journey!

Hey @Wyatt Wolff, I don't expect much from my lending partners other than updates on how things are progressing towards preapproval with leads I send them.  Maybe give me good marketing info on programs tailored to 2-4 unit investors.  I occasionally enjoy co-hosting (splitting costs) for client events with a lending partner but that is pretty rare as most lenders just want to hold "first time home buyer" classes/events or co-brand online ads for home buyers.  Not my target clients. 

I send out a list of my 3-4 lending partners to leads every week.  It would be nice to have more leads sent my way.  In 14 years, I can count on one hand the number of lender provided ready-to-go buyer leads I've been given.  I realize I would get more if I only referred a single lender but as with any referrals, I believe it is best to give clients more than a single option.

I'd be up for a chat.  I'm not 100% dialed in perfect with biz and health but may have some nuggets to contribute. I like the theme of your show.