All Forum Posts by: Catherine Cleveland

Ken be careful assuming that. While not on your credit report, if you use depreciation on your taxes, the bank does use them for DTI; just happened to me. Bank pulls credit AND last 2 years taxes. If those loans are on your taxes, then they will want them for your file.

 @Cian R. if you don't mind me asking, did you use a consulting firm? If so, how much do they cost ish? I just got my first quote back and was quite suprised.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $66,000
Cash invested: $70,000

Short term rental. 85% occupancy. About to refinance out 80% for another investment.

https://www.airbnb.com/rooms/46630739?source_impression_id=p3_1640348850_mkJM9F56%2BDeWXuPl&guests=1&adults=1

What made you interested in investing in this type of deal?

Wanted to get into STR. I just had a feeling it would work perfectly as an air bnb and it was so cheap that I figured it would be a less risky project to learn and create a system.

How did you find this deal and how did you negotiate it?

Friend owned it and was selling FSBO. I happened to run across it on facebook. I just reached out and offered to buy it.

How did you finance this deal?

Paid cash for quick close. In the process of a 80% LTV cash out.

How did you add value to the deal?

converted it to STR.

What was the outcome?

great cash flow. 33% cash on cash return unleveraged.

Lessons learned? Challenges?

Learned about STR and that I want to find a few more in my area! Overall great investment for money and for education. Challenge was trying to get it automated. STR can be very labor intensive so it's forced me to try and automate and be hands off even though I'm close so I can recreate this system in a location more remote.

I'm looking at a building for redevelopment into affordable/workforce housing. at the 30,000 ft view, the building seems to be an appropriate pick with elevator, exit stairwells, ample parking, location, and straightforward rough layout to put 24 cookie cutter apartments in it. What are some feasibility items to really start diving into for deal evaluation?

From what I understand and see, HUD seems to be appropriate for larger complexes, I don't feel juice would be worth squeeze for the red tape for a 24 unit apt building. I've got a meeting set up with the IL housing development authority and email out to city economic development team to open discussion. I'm struggling with the steps involved in redeveloping a building like this. Is this the right time to reach out to these folks? Or is there some more analysis I need to do on my end first?

Hey @David Clinton III! I did service one before and it was a hassle....not my forte. I'd rather put it off onto a company that "that's what they do". Appreciate the recommendation and I agree on the taxes/insurance portion. I want something clean for the folks that invest with me. Also....I LOVE Coeur D'Alene!! I lived in Spokane on two separate occasions haha. Did gradschool at UW. Love the NW. Lucky you!

For simple, small investments, who services these loans?

I'm looking at a 10 unit portfolio mix of 3 duplexes and 1, 4 plex. I have purchased sfr, and mfr in of themselves, but not as a package. 

My question is do I now value them the same I would a large building via cap rate? or are the still valued as individuals, as the market would indicated, regardless of the income?

Then....are they valued at what they are performing at or via the pro forma?

One strategy we are using a lot of our "owners investment" as a "loan" to the company in the form of down payments on investment properties, then will have the LLC repay the "loan" back as we enter into retirement. We both have decent W2 jobs, live off of one income, use the other W2 income mostly for investing. I feel secret is living off one income (for two income house holds) and using the other to buy rentals. It's like putting unlimited funds into your retirement account. Later, you can repay yourself from the cash flow from your rentals.

no thanks on easy street. Was hoping you had found another one i had somehow not heard of.

Which "turnkey" company are you referring to? I live and invest in the quad cities.