All Forum Posts by: David Ptak

And to answer the questions - no the hotel does not have a flag. It has a manager who I could keep or replace. And, I'm still looking into the capex situation. The point about needing access to refinancing for capital improvements though makes a ton of sense.

Very helpful folks! Thanks so much!!

I'm looking to purchase a motel. The seller wants 2.5% of the sales price for the earnest money deposit with a 30 day contingency period and a 45 day close. It would include seller financing. Does this sound reasonable? And, If I'm out of state do I need a lawyer in that state? And, if I do, does anyone have a recommendation? Any advice is greatly appreciated!

Hi all! I'm looking to purchase a motel in Michigan. I'm from California. The deal includes seller financing. However the seller wants to protect against me paying the loan off before the first 10 years through refinancing or otherwise to reduce his taxable income. So, I'm wondering what the downside might be for me. First, can he restrict me from refinancing? Also, is refinancing even an option for me? Wouldn't the property have to appreciate significantly to refinance? Finally, I'm probably going to need a Michigan attorney to complete this transaction if it gets there, so if anyone has a recommendation. Thanks everyone!

Great story thank you! So you're saying your total expenses on a monthly basis are 35 to 40%? That's a great part of the story. You mentioned the manager living on the property but that still sounds incredibly inexpensive to run. Anything else you can share in that regard? Thanks again for your post!

Where is it located and have you done any STR report research to know what the occupancy is for that area? Those numbers seem very low.

Thanks for your interest John. I'd be happy to. This is probably a single family but perhaps with a second unit like a granny flat. Still in the search phase. The asking and ARV is kind of what we are trying to figure out with the calculators but I should mention it's in one of the higher markets (San Diego) so probably around 400k they way it looks. We would split the cost and he would use it as his primary. I think you answer the question for me if we are looking conventional. Since we want to hold it for a couple of years I think we are out of the running for hard money. The time frame is too long. I'll try the flip calculator and include the mortgage then. Any other thoughts or questions are very welcome. Thanks again!

I see. Thanks for the feedback. Yeah I was working with both and just struggling with what really made sense. I very much appreciate the help!!!

Hi folks. I'm hoping others out there would benefit from the answer to this question and that someone out there may have some insight. 

I'm using the bigger pockets house flipping calculator and I'm trying to determine what to include in the holding costs. what's unique about this flipping scenario is that I plan to hold the property for about two years before selling. In that time the person living in the property will be doing the improvements. This person/co-investor will also be contributing to the mortgage. I plan to get a conventional loan for the period we are holding the property. So the question is in calculating the return, what should the monthly holding costs include? Should it include the entire mortgage and other costs or just the interest and costs. For that matter what should be included in the holding costs if it were a hard money loan. Would principal be included in the holding costs?

Any advice would be greatly appreciated!

Yes I would be the only tenant in this situation. It's a roadside hotel.