All Forum Posts by: Carrie Zhang

I will soon be selling my rental condo in downtown Tampa and I should walk away with $500k. I would like recommendations as where i should go to invest it. I want to be out of Florida as I live there and have other properties here. We would like someplace family can visit 2x  a year and VRBO it the resto of the time as I should be able to have no mortgage on the property.  I have been looking at Lake Homes in Georgia and Places in Myrtle Beach as there is a direct flight from  Tampa to MB  that would be great!  Is there any recommendation on an area that I should be looking to go based on budget . My head is going to explode as not sure where is best to look at  

@Evan Hirsch Sure. No problem. 

I opened a business checking account, transferred money from my own credit union account and then was told the new business account was being closed and that the bank was holding my money for 60 days. The only explanation I received was that my account was out of compliance. I called, emailed, requested more info and received zero information. A non-involved banker friend told me that the noncompliance was overly conservative if it was based on the relatively small amount of money I transferred. (Maybe because their banking partner is a small regional bank and doesn't have enough business account experience? idk) He also said that any question should have triggered due diligence on the bank's part. However, they did not request information from me. They simply froze the account. I invested way too many hours trying to resolve. Meanwhile I couldn't access my money. I asked for help from their partner bank (thread), drafted complaints to the FDIC and the state banking regulators. I finally received a response and help from Relay after leaving a negative review on Trustpilot. Within 24 hrs of the negative review, Relay reached out to me and requested recent bank statements from my source account to verify. I provided and they reversed the cancellation and unfroze the account immediately. I was happy to gain access to my funds, but it did not make up for my wasted time (about 3 wks) and their unacceptable treatment initially. If they had simply made the request when they first froze (then cancelled) the account, I would have stuck with them.

I have no way to convey my credentials - I’ll just say that I have a very solid banking presence and there is nothing about me or my LLCs that would make another potential customer think that this same thing won’t happen to them. If I could identify something unusual about my setup I would say.

I moved to Grasshopper bank and so far it's fine. They are slow to makes funds available for new accounts, but are very transparent about the timing. For a different llc, I use Bluevine and good experience so far too. Both Grasshopper and Bluevine also offer regular checkbooks if you want. For Relay, customers must order a check from them and have it directly sent. None of the 3 offer zelle. I was hoping Relay would be a good bank because I would love to have all my LLC accounts under one login so I could see them all on 1 dashboard. I'm hopeful another option will emerge that offers this setup.

Hope the details help! Ugh my blood pressure rises just thinking about my wasted time. Good luck!

Quote from @Anita Z.:

Hi, would love some input/advice on buying a small cottage in Saugerties, upstate New York(mid Hudson Valley).

Looking at buying as a STR/vacation home for myself. Its priced well, needs work(which is fine) but wondering if anyone has had any experience buying, living, or managing any rentals in this area or near it?

Are the STR's there a good investment?

Would love any input here.

Thank you.

Hi Anita I specialize in STR sales and operations out on the OR Coast..oddly when clients don't find what they're seeking or are priced out in the coast several have purchased STR's in upstate NY. The performance metrics typically look strong. Connect with @Joseph Chiofalo he’s done some STR loans there recently for those same clients and can refer you a local RE Broker. Good luck! 

@Carrie Zhang, I think the answer is no. That looks like co-mingling to me.

Also, that is short sighted I think. What are the largest expenses you expect to charge to a credit card? My guess is materials from stores like Home Depot or Lowes. If so, get a business credit card at those places for your LLC (with you as personal guarantor).

At Lowes you will enjoy 5% off any purchase at the register which is more than you are likely to get back on your personal card.

PLUS! If you are making larger orders you can make those through their pro-desk or through their pro-site and get discounted pricing and probably average 15% off! You can only get that pricing if you use their credit card.

Quote from @Mark S.:

@John Mausteller And if the rate hike requests are denied you can expect insurers to continue to pull out of those jurisdictions. Companies won’t agree to continue to lose money on their premiums.

They have been denied here before - most major insurance providers (the State Farm’s, Allstate, etc) pulled out of the outer banks years ago.  Almost all policies are underwritten by the North Carolina Insurance Underwriting Association and that was formed specifically so coastal area homes could and would have insurance. 

Hey @Carrie Zhang, so I am not an insurance professional but...

You will need a separate wind policy and/or flood. Each policy is different so when you call you insurance person ask.

Proper, Foremost and many others now offer STR policies. Proper is expensive but very comprehensive. Foremost is less and still very good.

Hey @Carrie Zhang. So the best way to avoid assessments is not buy a condo. Every condo will have assessments at sometime.

HO6 condo insurance isn't the product to be used for a STR. You will want a dedicated STR policy which goes farther in protecting your asset and yourself.

The HO6 policy is essentially a home owners policy for condos. 

Metro Detroit has what 99% of Real Estate Investors want. 

Couple hundred bucks a door monthly cash flow, double digit ROI, and yes the prices appreciate and you build equity.

I cash flow $100k a year off 20 doors and have built a ton of equity in a short amount of time. Happy to send a screen shot of the portfolio to anyone who wants to see, it just won’t allow me to attach pics to a reply.

Purchase: $80k-$130k

Rent: $1100-$1500 (no rent control in MI)

1% rule: 1%-1.4% rule deals

ROI: 10-14%

Cash flow: $250-$350/door (after all expenses and budgeting for maint, capex, vacancy)

Appreciation: 3-10%+ (has been double digit for a decade)

Location: C+, B-

These numbers are based on the "sweet spot" in Metro Detroit. These are largely in the suburbs and some markets within the city. You can find higher ROI (on paper) here and probably in other cities…but the probability of actually collecting rent significantly decreases. Where these numbers are found, there is a very high rate of rent actually being paid.

We have over a dozen Fortune 500 companies just in Metro Detroit with huge Healthcare, Auto, and mortgage industry National footprints. Ford, Rocket mortgage, Beaumont hospitals and more. All complimented with Amazon fulfillment centers, google, and more tech manufacturing jobs.

The bad reputation of “Detroit” comes from OOS investors wanting sub $40,000, D class properties. We don’t buy those. We have found what works and repeat it as much as funds allow. Detroit is known as the highest rent to price ratio in the country…and we’ve found the perfect balance of price/location within the area.