All Forum Posts by: Chad C.

has anyone expanded outside of their state? It seems that one would need a team on retainer, so it would be just as easy to manage a property 6, or 600 miles away. Do yall own these homes, or are some a sublease?

It seems excessive how much a management company charges for short-term rentals, and will be hard to resist that extra 40%, but I guess if you had quite a few rentals then it would be worth it.

Thanks Brad! how many units do you have, and how many nights of the year are they rented out? 300 nights out of the year seems like a high expectation, that's just one night out of each week not being rented. But even at 150 nights my calculation still come out great.

I am shocked at the returns of an acquaintance that rents his condo out 300 nights a week. said he clears 42k a year!

ME TOO!! I would totally manage that property myself for an extra 12K? is it that much work? 

They may have no construction sense, and think the roof may collapse. Let them know there is no weight on it and not possible to collapse

@John Arendsen  Bond for deed might be Louisiana specific, but other states have similar contracts.  I think it's similar to California's land contract.  I was just wondering if your repossession process was difficult. 

@Carrie Cavins this has some really good info in it. I would think any title company could write up a contract for you 

http://www.lonestarlandlaw.com/owner_finance.html

@John Arendsen, when the owner occupant stops paying the note do you have to go trough a foreclosure process? I have heard about sellers signing over the title, yet still technically owning it, but it makes the eviction more difficult and lengthy. Where as a bond for deed puts the deed in escrow, and the owner receives all the tax benefits of the property. If the payment is late 45 days, the sheriff can come evict them. 

 They are 4 separate tax parcels, and each have their own septic tank. The units are 10 to 15 years old. For me the value is having the set up already there.  If I value this like a business, giving no value to the trailers, It is still under priced.  I would have to do a mortgage as if there were no trailers on the property, and all the value is in the land. But I don't think it will comp for that much. 

 I also think I could sell the trailers on the land for a nice profit,possibly do an owner finance. Or I could just rent the lots. 

 I found I deal that could be very profitable for me, but it's so hard to pull the trigger on something that isn't pretty,  only depreciates, and might be more work than I expect.   When I see the property, I think how can I put money into this, but when I look at the numbers, it seems like a no-brainer.  How did you make that "leap of faith on your deal"?

deal is 4, half-acre lots. Three with trailers, that rent for 750 a month. Asking price is 145k. I calculated it cash flowing 15k on a loan(if I can get one). That's with 6000 in expenses. So for 20% down (29k) I making a ROI of 51%. I rode by the place today, and it's not horrible. There is a neighboring lot that is kind of junkie. if I got someone to manage it, that might alleviate most of my reservations.