All Forum Posts by: Chris Tomingas

I've been using Rent redi for just a short time. Getting a new tenant and lease setup. The interface is not very user friendly and things that should be obvious are difficult to find and take figuring out. Linking my bank account has been the biggest frustration. Additionally, I don't know if it's because I use a Mac but on the website when I scroll down on the main page, I can't scroll back up to the very top to click back on the "menu" or "settings" and instead have to navigate the less convenient side bar. This app is supposed to make things easier but instead has been a source of annoyance and irritation since I started using it.

Hey all, I have a property thru my LLC in Atlanta that I'm currently rehabbing and plan to refinance once it's finished and rented. Any recommendations for a local Atlanta bank to work with??

How did you calculate COC return? 48% COC return would be a fantastic deal!!

Note that Airdna NOI includes cleaning fees. So if your cleaning fee is $150 and you estimate 8 stays a month, then about $14,000 of that NOI will go to cleaning.

Obviously you want to get a good idea for your expenses like taxes, insurance, HOA, maintenance, Capex, and utilities. For initial set up you'll also need to furnish the place for (about $15/sq ft) and add closing costs for the loan (2-5%).

If you put 20% down on $737,000 (about $150,000) you're taking out a loan for about $590,000. If you get an interest rate of 7%, your debt service will be $41,300 per year (will more after adding taxes and insurance.)

So true NOI is $68,382 - 14,000 (cleaning fees included in Airdna) = $54,382 . Cash flow will be NOI-debt service 54,382 - 41,300 = $13,082. Cash on cash return will be 9%, which is still pretty good all things considered.

Obviously, you need to do your due diligence. I recommend YouTubing videos about how to analyze a STR deal. Robuilt makes great videos.

I have looked in Blue ridge a lot and given up trying to find a deal. The numbers I was getting were <5% COC, barely breaking even or even losing money. The inflated price of everything and the higher interest rates make things very difficult.

Glad to meet you Taylor and thanks for the insight. Yeah it is a little bit too far to walk to downtown and definitely important to consider crime in the area. Didn't appreciate that. 

There really is so much student housing in area and I know it's just going to keep appreciating as time goes by.  In the end there was significant problems with the house, so I lowered the offer and it fell through. The search continues. 

That Airbnb listing is sweet! A new sleek tiny home and then all the recreational area outside! I wonder how much $ it took to set that up and what his returns look like.

I heard they're making a new addition to Sanford but are they going to make another arena too? 

The Eastside inside the loop definitely seems like a good long term bet. The houses are more affordable and there are quite a few rundown off market, the key is to find one that could be economically rehabbed then LTR, MTR or STR.

In due diligence on this house that is in great location close to downtown in Athens, GA. The inspection revealed rotting and termite damaged structural wood so I don't think rehabbing is feasible or practical.

My plan was to build 1000sqft 2bd/2ba new home on site for $200,000. I am thinking short term rental so I added $15,000 to the rehab to furnish ($15/sq ft). With STR I believe I can get $2,200/month (not including cleaning fees) . The numbers don't look super great, but I believe in long term this great location will continue to appreciate.

Please view my report and let me know what you think.. 

View report

*This link comes directly from our calculators, based on information input by the member who posted.

I have been looking furiously to get into a turn key STR before interest rates climb higher. I was certain this was the right play so I could take advantage of bonus depreciation, which is going to begin sunsetting in 2023.

But now I am feeling cold feet. 

As long as inflation stays high the fed must keep elevating interest rates and destroying money. The result is the value of all assets are coming down. Prices in vacation markets are nuts and the competition from other AirBnbs is intense!

I don't think there will be a sudden crash but an insidious decline over the next year or two, which in some ways is worse! You won't ever know when we've reached the bottom, but I think we're still ways off from it.

Should I keep building cash (which is losing value) and wait for recession to set in? Or should I buy a rental (which will likely lose value over the coming years)? Perhaps the right play now is a value add, maybe an extreme value add.

Alas, I have returned to analysis paralysis. I heard a quote saying, best to chose a path and stick to it rather than chose no path at all. Value add it is!

Any thoughts or advice?