All Forum Posts by: Dillon Alder

Hey all! I just wanted to give an update and ask about my next move in RE.

I have 2 rental properties in Idaho that cashflow a combined $400-500 each month and a primary residence in Salt Lake. My brother and I bought the Salt Lake home together and we Airbnb 2 of the rooms to cover the PITI each month. We are fixing up the 1100sqft unfinished basement as a live in rehab. Purchase price was $315 and fixing the basement should add 100k to value.

My DTI is shot (~60%) because of the recent purchase and being unable to claim the income from Airbnb for a while (2 years if we don't move out, 1 year if we do)

I’m in the process of refinancing one of the Idaho rentals. I have about $82k equity in this one and would be able to pull out $24k of that for a cash out. The problem is the closing costs: they want about $9k upfront just to give me $24k and I’m only losing a little over a point of the interest rate. (Current 4.625 to a 3.5% refi) I have to use a co-signer for the refinance also just to qualify.

This loan won’t pay for its closing costs until the very end of the loan and therefore doesn’t make much sense from that standpoint.

They told me I can do a rate and term refinance and lower the payment $100/mo and pull out $2000. This loan will still take about 5-6 years to pay for its closing costs. I’m thinking of going this route because I feel like I will have the house for a long time, but I am unsure if it makes sense. I also wanted the $24k for some other investments, but it doesn’t make sense to pay $9 grand to pull out $24 grand. The ROE is very low with my $82k equity and so I want to use that equity elsewhere without selling the property.

Please offer your advice and maybe some solutions to my predicament and how I can continue to further my portfolio.

Thanks,

Dillon

I’ve been very lucky with my tenants. Two of them are retired and automatically pay from their social security, another works as a high school teacher so she still has her job and usually pays 3 days early. One guy works 2 weeks on - 2 weeks off in the Alaskan oil fiends—and for all I know he is still busy and working. No issues yet. 🤞🏻

I am a student in Provo, Utah and would like any input from any landlords in the area with short term rentals. I am curious about the potential income and want to know how others have done on a consistent basis. I fell out of contract on a deal here in Provo and am not able to buy for a while. My plan is to do the whole Airbnb arbitrage thing and sublease a place to Airbnb (with the owners permission of course). I want to do this to lower my rent expense. A private room here is hard to find under $400/month and so I’m thinking I could rent out a 2bd place for around $7-800/month (married housing can be found in this price) and then Airbnb the 2nd room, as well as my room when I can stay somewhere else. I know there is potential for this to work because I have been an Airbnb host here in Provo before with decent results. Please private message me if you don’t want to share your short-term rental income to everyone. Thanks in advance!

-Dillon

(Orem, Utah; Salt Lake City, Utah; Park City, Utah; American Fork, Utah; Spanish Fork, Utah; Lehi, Utah)

@Bryan Laufenberg

@Account Closed I failed to mention that the benefit of fixing up the property by ~$15,000 isn't necessarily that rent increase of ~$200, but rather the forced appreciation that I could capture with a cash-out refinance. This property could be a good BRRRR at its price points. I will get some rent comps from my agent to see if I can safely raise rent. I appreciate your response.

I am under contract on a SFH where there are tenants in place who have never missed a payment in 11 years. They are a retired couple in their late 60's; the previous landlord hasn't maintained the property perfectly or kept up with market rent. This property is in a small town where my parents know the tenants and my parents live within a block of the property. Current rent: $625. If I put $15,000-20,000 rehab I could get ~$850-$900 in rent. The rent as is could be in the $700's. It is a 3bd/1ba around 1200 sqft. (My dad is a plumber and could add another bathroom) $75,000 purchase. I am wondering what I should do. I am not planning on raising rent right away because they have been great tenants and they always pay. I don't think I could do any renovations while they are in the home. What options do I have? Thanks in advance

Hi! I am a landlord and am taking my final writing class in college and want to do a research paper on something real estate related (Might as well research what I am interested in). I need your help finding something that is argumentative and can be researched fairly easily. Any ideas would be appreciated. 

Some ideas I have:

Landlord/tenant laws by state- but not sure what I would argue. 

Zoning laws/issues.

Eviction process and related laws per state. 

With these ideas I don't know what kind of thesis I would make or what kind of argument I can bring. English is my weak subject.

Thanks in advance. 

I have a rental where the previous owner loved trees. He lived there for over 40 years and planted many trees throughout his tenancy. The back yard hosts 2 apple trees, one pear tree, a small cherry tree, a small hawthorn tree, three large pine trees, a large spruce tree, 2 large (beautiful) maple trees and a smaller maple tree, a large walnut tree, a large horse chestnut tree, and a fairly big lilac bush. The large trees are all at least 50 ft tall and there is no pattern to how they are placed. They are scattered all over the backyard and it makes it look like a mini forest in the middle of a block in this small town. On the ground has many different flowers and plants that he also had planted.

The yard is very pretty and has grass and flowers on the ground amongst all of the trees. The reason for this post is to get opinions on what trees to cut and what trees to keep to boost curb appeal and the appraisal for a refinance. I can provide pictures and explanations of tree locations if needed. We plan to cut most of the trees down and to keep the two large maple trees. There will be stumps all over the yard if we cut the trees which adds to the dilemma. 

Any opinions are much appreciated. -Dillon