All Forum Posts by: Chad McMahan

Hi folks -
Purchasing an STR condo in FL that is currently managed by Vacasa. The seller tells me they have a 90-day notice w/ Vacasa, which they apparently have not given Vacasa yet. I got a hold of the Vacasa local sales rep and was told
"I can't share the current owners contract, but states a 90 day notice will be given - terms forward with you would be 90 days after signing and you could terminate after 90 days."

There are only bookings out to just a few days past closing, which I'm happy to keep. But given the past performance and reviews (and general Vacasa sentiment here and other forums) of the unit I'm not leaning towards continuing using Vacasa.

Am I obliged to honor anything w/ Vacasa? There is nothing in our closing docs/addendums that indicates I am taking over any contract nor have/will I sign anything w/ Vacasa. I have read that Vacasa will charge fees/etc for any future booking if you cancel, but what if there are not any bookings?

I understand that Vacasa "owns" the airbnb/etc listing itself and that will be removed and I have to start all over.

thanks!

Definitely ask an attorney, rather than taking advice here to the bank. My assumption (BUT NOT LEGAL ADVICE) is that the seller is held to that contract and not you, the buyer. They signed the agreement and you did not, and the agreement does not lawfully convey with the home. It's likely the sellers will be penalized somehow. But again- ask an attorney.

0 Votes

Quote from @John P.:

I have invested with several syndicators over the past 7 years. Curious if anybody has any others to recommend as I like the idea of being as diversified as possible as I would like to avoid a Bernie Madoff type situation ruining my retirement. :)

In no particular order:

Rise48 - Arizona and Texas multifamily;

Think Multifamily - Texas multifamily;

Open Door Capital - Texas multifamily;

Lonestar Capital - Texas multifamily;

Camino Verde Group - Vegas, Texas and South Carolina multifamily;

Disrupt Equity - Texas multifamily;

Garages of America - Texas storage;

Ashcroft Capital - multiple states.

Others I have heard of but not invested in:

BAM - Indy;

Grocapitus - Arizona and Texas;

Elevate CIG - currently has a deal in South Dakota;

Praxis Capital - seems to do a lot in Georgia but currently just has a fund open;

Sunrise Capital - parking lots and multifamily - storage too?

Wellings Capital - fund;

ANY OTHERS you recommend? Any input on the above? I'd love to get into some other sunbelt states besides Texas as I seem to be Texas heavy right now.

Hi John.
Just to make sure we are talking about the same thing, you mean real estate investment funds, which are limited partners + general partners, correct? Not syndications, which are simply groups of investors pooling their money together?

Assuming yes to funds, I'll throw a AZ multifamily hat in the ring: https://capitalgiants.com/

1 Vote

Quote from @Michael Shea:

Attention Data lovers! I need some help...

I'd like to convert a long-term lease condo in San Diego CA to an Airbnb. The part of the county the condo is in doesn't require permits, however, the HOA is posing a problem. Though not currently effective, the HOA is considering an amendment to its bylaws that would prohibit Airbnb's in the complex. Their opinion and primary argument against is that Airbnb's negatively impact property values.

Fortunately the HOA Board is going to meet with me and hear my petition. Moreover, it's a small complex of 12 units so I am hopeful that they can be persuaded. I need a strong pitch to win them over though!

If anyone can point me to any real data on how Airbnb's affect property values (either for my case or against) or has any advice on how to go about this conversation, then I'd be forever grateful.

please help!

It's absurd and small minded to argue that short term rentals (notice I didn't say "airbnb") decrease property value. I'm seeing that successful str's and desirable STR friendly properties experience appreciation, amidst the softening market, whereas HOA's governing str restricted properties have taken a huge hit on value. The real reason this argument surfaces has nothing to do with reality- it's an emotional argument, based on them not liking all the activity and the occasional noise, and a few other issues- that especially surface in cities. In more rural areas like Sedona, there are far fewer issues- but we still witness this mentality. I make sure I'm an expert on every location my buyers purchase within, so we get ahead of the curve and make nice with neighbors upfront + be ready in case they make a stink of it later, so there is no panic and minimal frustration.

I have clients that purchased within a HOA that is STR friendly- according to their CC&R's, but with a HOA president that is a total grouch and hates STR's. He tried to argue with me that STR's are not welcome, and I simply and calmly read his CC&R's to him, and explained what his own verbiage means and allows, and does not allow (according to my trusted attorneys), and that put an end to that argument. No problems, since. Other good news in ARIZONA: if he changes the CC&R's, those clients have grandfathered STR rights, according to the AZ Superior Court. May not work that way in CA, though- I won't pretend to know that.

0 Votes

San Diego, California

Quote from @Account Closed:

Quote from @Uriel Resendiz:

Has anyone on here thought of installing Solar on their Properties? or have you heard a friend or neighbor talk about it to you?

do not hesitate to reach out, I have great referral programs upon deals closing

Cheers

Well, since you asked . . here in Arizona the sun tends to shine throughout the day. I'd love to do solar but the sun doesn't shine at night here and battery packs just aren't sufficient for my electrical load for night service.

What I've done with solar, is I don't bother with batteries. I do solar + APS electrical. The power I create goes onto the grid, immediately and APS gives credit for the solar production and takes that off the bill. I average $25 per month on top of solar cost for power.

0 Votes

Los Angeles County, California

Quote from @Janet Cho:

Hi, Everyone. Thanks for reading this quick post and getting to know me a little. I'm based in Los Angeles, California and am looking to invest in rental properties as a passive second stream of income. As one of my immediate goals, I would really love to have a mentor who I can help in whatever capacity while learning from them along the way. I got interested in real estate investing because I was looking into side hustles and realized investing in real estate would provide a solid and proven path to building my wealth over time. Really interested in learning the BRRRR method.

Hi Janet! Welcome to BP, and welcome to real estate passion and obsession.

0 Votes

Los Angeles County, California

Quote from @Kyle Patrick:

Hey everyone! I am new to BP (this is my first post!) and STR's. My wife and I are interested in purchasing a STR in William. Does anyone here have any experience with the area? Thanks!

Hi Kyle.
I know a highly experienced investment real estate agent who works the Williams area. PM me if you want her contact info.

0 Votes

Flagstaff, Arizona

Quote from @Sarah Kensinger:

The lack or inattentiveness of safety in short-term rentals is appalling!! Over the weekend 3 people died at a STR in Outer Banks due to a house fire, and it seems like every couple of months we hear of more people dying at a STR. We need more awareness and possibly training for those that operate STR! Justin Ford of Breezeway is bringing awareness and offers a safety course that hosts become certified in all things STR safety; yet so many people have never heard of him! He pointed out the photo below that he came across on the Airbnb platform preparing for a STR safety presentation. Seriously what are the hosts thinking!! This property is a small treehouse that the hosts are cramming 9 guests into!

We need to start talking about STR safety more, and please, politely make your friends/colleagues that are STR hosts aware of dangers that need to be addressed. Guests are guests but we don't need to hand them a stupid opportunity that turns deadly. This is partly why STR are gathering more restrictions is places. If we would educate ourselves better at the safety items other public lodging facilities have to follow, it would help keep guests safer and give assurance to the local community.

Located at one of the top 20 STR in the mid-west, congrats to another brilliant Missourian!.......

Agreed. The safety stuff is definitely not considered enough by owners and not only will cause more deaths/injuries, but also cost the owners in lawsuits- in some cases will bankrupt (or yield jail time + fees for) owners.
It's interesting that you provided a photo and example of a STR fire/cowboy style hot tub. This version is one of the most dangerous that I have seen pictures of. Wow.

However, even just an unheated "cowboy pool" (a small metal pool- usually round), is incredibly risky for owners- and mildly risky for tenants. They share the same pool safety requirements as a traditional pool. Yet almost nobody satisfies those requirements, as it's done on the cheap. And because it's fairly common, people think it's okay, legal and "safe enough". It's not safe enough in the law's eyes, and owners are liable if something happens and required+ (I recommend you take extra precautions above and beyond what's legally required) precautions are not taken. Scary stuff.

1 Vote

Quote from @Connor Eigen:

Hi everyone,

Im under contract for a STR and just got the loan estimate back. It was not what I was expecting. I was expecting to put 20% down and have an interest rate of about ~8%. Due to the appraisal of the house and the DCR being negative, my loan estimate is now 25% down and an interest rate of 10.5%!! My initial investment will be around 30k more than I calculated for.

I am using some cash and a HELOC to finance the purchase of this property. My worry is if the house doesn't perform like its supposed to. What would you guys do?

I estimate the house would gross ~60k. Heres the numbers on the house.

purchase price - 380k
loan amount - 285k

Interest rate - 10.5%
estimated expenses - 3.6k

Estimated monthly gross - 5k

Unfortunately, this is a frustrating and common problem, that results from low appraisals. I hate that appraisers hold so much power over the process. Most appraisers own zero real estate and are resentful about market values, etc. Also, appraisers can get in trouble if they come in high, but don't get in trouble if they come in low. I've been problem solving this for years.

Sometimes it's worth it to proceed when you get appraiser-screwed, and sometimes you have to pass. Had to say, based on your info. Have you tried for a "reconsideration of value"? Your real estate agent and lender should help you with this.

0 Votes

Quote from @Account Closed:

Quote from @Michael Wachel:

Since I am just getting started I have a question about how you all handled the COVID eviction moratorium? It is kind of scary that the government can just allow people to stop paying rent and landlords have no recourse.

That's because you're in the wrong state. Or, you voted for the wrong peope ;-)

I'm in Arizona and we just ignored it. In fact, I did have to evict from one property during covid and the tenant tied to use the "covid defense" and the judge ignored it, evicted and awarded me a judgment. It was fast too, no delays.

I'm also in AZ. I experienced 3 evictions through my clients' properties. It was case-by-case with the judges. 1 of the 3 was allowed to stay and not pay. The other 2 got the boot from the judge.

4 Votes

Colorado Springs, Colorado

All Forum Posts by: Chad McMahan

Chad McMahan has started 7 posts and replied 727 times.

Post: Are vacation rentals still worth it?

Post: Future/status of STR property management contract when unit is sold?

Post: Syndicators - any recommendations?

Post: HOA Claims Airbnb Hurts Property Values

Post: What are your inputs on Solar Energy?

Post: It's nice to meet everyone. I'm Janet!

Post: STR's in Williams, AZ

Post: The lack of short-term rental safety!!

Post: What would you do?

Post: How did people handle the COVID Eviction Moratorium?

Chad McMahan has started 7 posts and replied 727 times.

Rounded Star Post: Are vacation rentals still worth it?

Rounded Star Post: Future/status of STR property management contract when unit is sold?

Rounded Star Post: Syndicators - any recommendations?

Rounded Star Post: HOA Claims Airbnb Hurts Property Values

Rounded Star Post: What are your inputs on Solar Energy?

Rounded Star Post: It's nice to meet everyone. I'm Janet!

Rounded Star Post: STR's in Williams, AZ

Rounded Star Post: The lack of short-term rental safety!!

Rounded Star Post: What would you do?

Rounded Star Post: How did people handle the COVID Eviction Moratorium?

Post: Are vacation rentals still worth it?

Post: Future/status of STR property management contract when unit is sold?

Post: Syndicators - any recommendations?

Post: HOA Claims Airbnb Hurts Property Values

Post: What are your inputs on Solar Energy?

Post: It's nice to meet everyone. I'm Janet!

Post: STR's in Williams, AZ

Post: The lack of short-term rental safety!!

Post: What would you do?

Post: How did people handle the COVID Eviction Moratorium?