All Forum Posts by: Craig Parsons

@Taylor L.  Thank you for the response.  I am working on asking the city if the Mini Storage is allowable. So am If I understand correct they would want about  $125 in revenue after other expenses (other than mortgage)  for every $100 in loan payments?

So I have a line on a property  that is zoned mix use Residential on top and commercial on the bottom.   Upstairs is 5 1 bedroom apartments ,currently rented, that the plan is to convert to Short term rentals, as the area is a haven for travelers,anglers and hunters.  Hotel rooms are usually filled near capacity during the Summer/hunting/fishing season.  We would convert 1 unit at a time as renters leave.  Downstairs is open commercial space. It was last used as retail.  The problem with this property is there are only 12 available parking spots.  So my thought is to convert the lower commercial space into some sort of smaller unit mini storage. My reasoning is that this would have the least amount of day to day traffic.  Does this sound reasonable? Does anybody have any other ideas in which to use the space?  Lastly for commercial is there a ratio/rule of thumb of income to debt ratio lenders allow, does it need to be a 2% property or something else?  I do have a Private lender that can and will front the whole purchase  but I'm not sure how to structure a deal that lets me pay him off in a year or so.

Thanks!

Yes they are looking for a deal and the local RV park has zero vacancy.   I also have a funny feeling that is why I posted it here!  They do say they have 3 storage trailers as well so that may preclude them from a traditional RV Park. I don't really know I was just thinking I could get my mortgage out of them for now until I get the renovations complete.    

@Bruce Woodruff. This is actually my biggest concern. I was thinking some sort of escalating rent clause in the lease. A RV park In the area lists rent at 900 per month and up. These people will have an RV plus three trailers full of stuff so my pricing Idea is 75% or RV park plus something extra for storage.

Escalating rent something like adding 100 per month per quarter after 6 months or whatever we work out.

I have a duplex setting on 1 acre in a rural area. The place is currently under renovation, that will realistically take about another 6 months to complete. Last week we saw someone in the area looking for a spot to park and live in their 5th wheel until they can find a house to purchase. Since we have plenty of room we were thinking about offering up a spot for them. Does anybody have any insight as to what could go wrong and any reason we shouldn't pursue this income stream? Thanks!

@Joe Splitrock

For me this is not a complaint of how much the materials cost today its more of a question of how much they will cost a few months from now. For instance on April 18th at my local Home Depot a sheet of OSB was $53.95. On May 11th the same sheet was $64.65. That's about a 20% increase in less than a month. I put a house under contract April 21. When it closes this week some materials are 20% higher what will they be over the course of the next 2 or 3 months while renovations are under way.

So do we just increase material cost by how much?

Ok so we just purchased a house that was a duplex. The seller was in the process to converting it to a Single family. Now we have a choice which has become a major disagreement between my close friends and I.

As the house sits now it is 3/4 renovated. Everything interior is finished except for the cabinets and finish plumbing which has not even been picked yet. But walls,floors, rough plumbing and electrical is done. As it sits the house is 5 bedrooms 2 baths and 1850 sqft. As a duplex it would be a 3/1 and a 2/1 both being around 900 sqft. There is only 1 power meter at this time. Also my plan was to add a ductless hvac system which would probably be 2 separate units one for each end of house. This is a single story side by side duplex. Also in consideration is adding a 3rd bath The duplex would bring in about $200 per month more than a SFR according to other investors in the area. What we are fighting over is #1 The extra time and cost, around $10k, to convert to a duplex. #2 is a 5/3 or a 5/2 going to be harder to keep occupied than having the 2 smaller units. #3 Which relates to #2 a bit is is having 2 units safer since it's less likely they will both be vacant at the same time.

My goal is to have 15 to 20 doors in the next few years so does that make the 2 is safer than 1 issue mute?

Either way this place will cash flow well and when I refinance it I will get all my money back plus 10 to 20k in cash with only refinancing at 70% of value.

Thanks for reading!

I agree with the others  buy the epoxy that is made for tubs,sinks, and tiles.  you will need to make sure the Tile is cleaned well beforehand but, I have painted a few with no complaints.  You can buy a very cheap  HVLP sprayer at Harbor Freight if you have a compressor.  I do not recommend rolling if you want it to look like it isn't painted. If you can find an etching solution that helps with adhesion as well.

@Linda Thomas

If she does not wear a mask when you are not there what makes you think that her putting on a mask while you are there will do anything to protect you? Her germs and spores will be everywhere weather or not she wears a mask. If you are uncomfortable with the situation hire someone who is comfortable like many others have said.

@Noah Milstein. So how does the interest work is it fixed or is it variable. Interesting concept no matter especially if one is sitting on a mountain of crypto.