All Forum Posts by: Carlin Randolph

Good evening. In a rental airbnb arbitrage deal, should I look to obtain a month to month lease or a lease of more like 3 years? 

I have never had or heard of any restrictions being placed on HELOC money. Make a note that the interest rate is a variable one with HELOC but you would have access to the money without paying interest on it until you find a deal and you are ready to use it. Then you would withdraw the amount of money you needed.

With an equity loan, you will have a fixed rate on the loan but you will have to pay the interest on the loan as soon as closing happens.

I agree with the two prior gentlemen: Buy a long term rental and manage the heck out of it. Be a great business owner and be familiar with every aspect of your business as a rental property owner until it's successful. Get great at problem solving. When you decide to go into STR's, you will know it- feel it because your knowledge at that time, your consistent returns from managing your business the right way and relationships you've cultivated along the way will indicate to you that you are ready for more.

My question to you is: When you crowdsource, is it crowded? Whats your rule of thumb for the number of investors you allow for one deal? I'd love to get some particulars on your success with raising capital. That's probably an inspiring story as well.

Great job authoring your future!

Hey  @Isra Sriratana. My answer would be to ask an agent selling in the area if the deck adds value whe done right. Once you know how much money the deck is going to put into your pocket, you can know if there is value in restoring it. Having the bids is a key step. If you find that you want to keep it: 

One contractor immediately says: "Whoa this is a bug job but I can do it"  ($$$)

Another one says " You should consider paying more to do something else" ($$$$$)

And a third contractor type sees the job and says " yeah I can fix it. All we gotta do is..." ($$)

Call that contractor back. He's done a lot of work in the area. Ask him a load of questions about the area and the need for the rental to have the deck, and how to value-add upgrade it. He'll usually give you ideas that take your money farther.

You are doing a lot correct just by waking up every day being focused on your goal. Get it laser sharp and then just start 'casting' the people into your life you would need once that goal is realized. Keep them close and ask a lot of questions.

If you meet an investor with all the money you need, be clear on what value you can bring to them. Would you property manage the deal you bring? would you want them to invest in something you want to own with them jointly? What makes investing with you a safe and comfy place for their money? 

You also have an awesome opportunity to learn every aspect of how the business works at the company where you work. Investors like to know you're knowledgeable enough to not loose their money when things go wrong. Knowledge can really be better than capital in this business. 

Also, have you considered starting out by partnering with someone who wants a multifamily and whom you can earn from? One deal comes from another sometimes. Find them a deal, ask them a ton of questions and be willing to do the leg work they direct you to do.

Just a thought.

First, the neighbors: It seems like you have moved out of the property so while its a consideration, its not as much for renting. If it is a major problem, you could be the complaint-making owner" who cares about the community and neighborhood. You could be the squeaky wheel for noise and physical pollution.

The property: I would say, you have to be clear on what your goals are. Grow your portfolio? Grow your cash flow?  'Bank' more capital gains?  Knowing where you want to head might lead you to a decision. But once you sell a house that has appreciated well in value, it's gone. Good or bad. You could refinance it or lease option it to a tenant. They would take on the risk of the neighbors and more of the headaches associated with the area.

Really my point is that whether you refinance it or get a HELOC or lease-option it, its easier to make the decision you're facing when you have a fall-back; Easier to buy something else when money is coming in already. And if after you buy something else, you still want to get rid of the property, you still can.

As an aside, @Kiuny Perez, do you have any information about the success of short term rentals in or around your area of Tampa? This would be helpful for me if you do. Much appreciated.