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All Forum Posts by: Colin Simon

Colin Simon has started 14 posts and replied 58 times.

Post: Get the right insurance for your STR

Colin SimonPosted
  • Investor
  • Boulder, CO
  • Posts 61
  • Votes 32

What insurance providers are y'all using?

I live in my STR part of the year, so ideally it is flexible around that.

Post: Thoughts on Airbnb?

Colin SimonPosted
  • Investor
  • Boulder, CO
  • Posts 61
  • Votes 32
Originally posted by @Sannibel Carter:

Just wanted to know everyone’s opinions on the Airbnb industry, and tell me why.

 Are you speaking broadly, or specifically in Boulder?

Boulder has a lot of restrictions, namely it has to be your primary residence(so you would live in it part-time). This makes it dramatically more lucrative for the period of time you do airbnb it. Best weekends are CU move-in, CU graduation, most summer weekends, and the biggest one of all, Grateful Dead. People pay through the nose for airbnb's in Boulder over that weekend.

Originally posted by @Jim K.:

you will then need to take off your belt and beat him with it until he understands the beating will only stop when he grows up a little bit and starts treating family members like family.

This entitled twit has to learn that his behavior has consequences.

You sound like you need to learn that your behavior has consequences.

Post: Never Will I Ever Do That Again

Colin SimonPosted
  • Investor
  • Boulder, CO
  • Posts 61
  • Votes 32

Is there anyone who would simply say "never again" to property management, and always hire it out?

Originally posted by @Pratap Koppula:

Similar complaints against the Whole foods and lot of other retailers on discrimination for service areas

 This was my initial reaction as well. Nearly any luxury product should be subject to the same criticisms.

Post: How conservative to go when analyzing BRRRRs?

Colin SimonPosted
  • Investor
  • Boulder, CO
  • Posts 61
  • Votes 32
Originally posted by @Brian Tome:

@Thomas Jerome - Gary and John's advice is solid.  You might just want to run three separate alternatives: worst case, best case, and average.  Make sure it works in the worst case, but aim for the best case in everything you do.

Brian is on the money here. Scenario analysis is also what I'd recommend.

A few expenses, like taxes and insurance, tend to go up slowly and might not have been assessed lately, so it can be a good cushion to just add 3-5% to their current rates.

I have heard that if you purchase a smaller, cheaper, or "worse" house that some lenders might not believe you when you say you will live there. But I am learning that especially in HCOL areas, going "small" may ensure repeatability and being able to move into a second, third, fourth...etc house hack.

So, moving from a $725k house hack into a $600k house hack might not be viewed favorably by lenders, even if it allows me greater flexibility to at least break even with cash flow and expand.

Can anyone corroborate this? Confirm or deny, or provide any solutions?

I may be able to continue working remotely, so then it would be possible for me to move to a different area and house hack there. But, then they wouldn't be very close to each other, which is convenient for management.

The great thing about HCOL areas is that you end up with large loans, so when interest rates drop, you can truly capitalize upon refinancing. I have improved my net income on my house hack by more than $600/month since I purchased it in mid-2017, and that's even after taxes and insurance have both increased! Truly does show how powerful "time in the market" can be. Rent only goes up.

Of course, the risk is that if low interest rates do rise, who will want to pay $600k for a house(or $1M, or $2M, or whatever in places like the Bay Area) at 5.5% or 6% interest? Prices would collapse!

Post: Never Will I Ever Do That Again

Colin SimonPosted
  • Investor
  • Boulder, CO
  • Posts 61
  • Votes 32

Plumbing, electrical, HVAC. Unless it's super elementary, best to hire it out. I've made plumbing mistakes that ruined a bunch of drywall. With electrical of course the risks are very high if you don't know what you are doing.

On the other hand, I'm great with heights, so trees and etc are not a problem for me.

Post: Never Will I Ever Do That Again

Colin SimonPosted
  • Investor
  • Boulder, CO
  • Posts 61
  • Votes 32

Scraping popcorn ceilings sucked. 

I had a two week window to do it, so I didn't have time to get it tested for asbestos... so I just proceeded as if it had asbestos, got a P-100 respirator, face shield, tyvek suit...etc.

The popcorn had a layer of paint over it so I had to spray it with a vinegar/water mixture. Turned into a cottage cheese thing that gets everywhere and is just plain nasty.

I've honestly had easier days climbing El Capitan than a 21-hour day scraping popcorn on a 100F day. It sucked, but paying someone for asbestos protocols is hideously expensive because they can't cut corners that a homeowner might. Spend whatever it takes to get the correct respirator, prepare thoroughly, and clean up thoroughly(bought a new a shop vac just for this, with the special drywall dust bag and also a HEPA filter).

#1 thing is to talk to a lender/loan officer. Or multiple loan officers, and pick who you work best with, or keep two of them in case they work with different underwriters and offer different packages.

#2 it's possible you are better off with a 5% down payment conventional loan and not an FHA loan, just a possibility to consider.

#3 There are typically requirements that they will give you, for example you have something like 6 weeks to move in to satisfy the owner occupant rule. If I am right about the 6 weeks, and you move in after 6 weeks and 3 days, probably no one will notice or care. But, if you wait three months, that's clearly different.

My difficulty right now in obtaining house hack #2 is juggling the DTI from my first one. It doesn't cash flow with me in it, I spend about $400/month towards PITI still, it's an expensive area that's hard to cash flow. I will have to apply leases towards the debt payment, and simultaneously move out in order to qualify for the new one.