All Forum Posts by: David Lowe

@Erik Hitzelberger You're right. It doesn't pan out in a business sense. Plus, I'm in CA so any issues, and it's a tricky one to sell/manage. Thanks for your really helpful feedback. 

@Brian Stephens Excellent feedback. Thank you. Of course, the realtor is saying all of the things that will happen soon but nothing concrete. As soon as I buy the place, he does a runner and takes his commission to the bank. This might have to be a pass. 

@Tim Herman I forgot to add mortage/STR yield. Numbers now added. Thoughts?

I'm looking to invest in a 2 bed, 2 bath apartment in Louisville, KY. It is turnkey and can convert from traditional rental to STR. Owner has proposed following deal:

- $240k purchase price 
- All furniture included 
- 20% down ($48k)
- 4.5% fixed interest rate 
- 2 year balloon payment 

Would you do this deal? 
What concerns would you have?
 

@Lia Martinez Sorry for the delay in replying. I noticed that BiggerPockets had removed the post because I hyperlinked to my company (the very last word of a long post!). Ridiculous. Here it is again (with the hyperlink removed haha): 

Nice work on getting to 3 and being part of the coliving movement. Loved your detailed explanations of each of the 3 and your ideas. This is greatly appreciated. The big question mark off the bat was the 1 bathroom per 2 bedrooms. That immediately reduces the rate you can command because as you rightly said, nomads are going to expect a private bathroom if they are paying a premium. I also heard from a Boomers group that they need a private bathroom because they need to go more frequently. So a shared scenario is an issue for those 2 demographics. Coliving is a tricky space to be in because you are ultimately fighting the greed of landlords trying to milk the Airbnb cash cow. That said, it will bring community to the US and truly change how we live. That is why I am sticking with it. If you want to connect, please DM me or find me on LinkedIn. Would be more than happy to share what I've learned on my coliving journey so far with Qwerky. 

@Emily Di I do believe my upvote was your 1st. Well deserved! Excellent breakdown of units and yield. Thank you. Marketing was definitely a concern. I think if I owned it, vacancies would be ok. But with a $7k

guillotine hanging above me, vacancies could kill me. If I invested $10k in to furnish for STR, that would also be at risk.

@Michael Baum Yes effectively an arbitrage play. Rough rule of thumb in San Diego is $1k per room. So $7k is obviously high but in line. I appreciate your honest feedback. I am definitely in two minds now. 

@Colin L. Agreed. The only thing is that owners still think they can make ridiculous STR rental yield so it's a battle to make them see sense.

@Wendy Schultz Yes. It's in the balance but at the moment, you can let out your place short term. If that changes, you just need to pay for a certificate to be able to do it. An outright ban will almost certainly never happen because the city figures it is better to make money of hosts than them do it illegally and lose everything. 

@Spencer Cornelia As my mission is to promote coliving in the US, then yes. Do you have any suggestions for property managers in Las Vegas as I have not invested in that market. I only did preliminary research for a real estate investment about a year ago. What makes it lucrative/cash cow and if it is that good, why has it not been snapped up? Can you send me location and more info (DM or email me through the Qwerky website) ?