All Forum Posts by: Elizabeth Seiferth

Happy Friday everyone! :)

I am looking for any tips on how to go about getting the green light on getting funded for my first of many fix & flips, I started a LLC a few months back and my credit score is pretty low as I've broke both my legs over a period of time.(healed now) I have someone with a 620 (not the best) credit score willing to help me get into a business loan to try and get around 50k funded so I can use a DSCR loan to get started as id need 20% down. So I was thinking if I could get a small business loan to get my 20% covered and then get into a DSCR loan and be off to the races. Any input, ideas or suggestions on how to get going? Im damned and determined to get going asap and am doing what I need to, to get my credit back up so this is all easier for future flips!

Truly thankful for this group of extremely helpful minds! 

I’m very hesitant to obtain my first real estate investment being in California. What are some good strategies for the California market that work for people?  Would anyone recommend doing my first investment out of state?  

Hey BP,

After spending >50-55 hours of watching and researching Pace Morby's videos and training; looking to get some actual students insight on the ROI of the program. Everyone in the forums continually say, "all up to the person, made back my money and more", without ever saying how many deals they've done, what Intrinsic value was provided, etc. seeking ACTUAL results, ACTUAL deals done, ACTUAL ROI please.

For reference, I have capital, time , and a relentless work ethic. I was seeking the membership program to leverage economies  of scale and ultimate velocity of my capital. 

Want to get a last sanity check before forking out > $11,000 in the program membership. 

Any and all feedback welcomed.

Hello!

I’m very new to real estate investment community (literally two months into learning via reading, joining bigger pockets), and have yet to invest in real estate, so please be kind in your response.  Thank you! 

I'm learning about all the different types of REI and house flipping seems to be the one I have the most interest in. However, I recently learned about the AB 1771: The California Housing Speculation Act that took effect on January 2023. The new bill imposes a 25% tax penalty if there is resale of a home within the first 3 years.

Link to bill: https://leginfo.legislature.ca...

Questions:

-I was wondering if anyone is aware of how much of an impact the tax penalty will have on the house flipping industry in California?

-The bill also raised a social question I have about the impact of house flipping on communities with historically low socioeconomic resources. Any thoughts on this? 

TIA! 
Tahirih 

Hi all-

Crunching numbers on a STR Mammoth Lakes, CA. Posting a similar thread to the Gatlinburg thread by @Amit Sharma.

Backstory:

This would be my second door, but first in the Mammoth market. 
I currently run a 1br in Ojai, CA with nearly 300+ 5* reviews and 2022 gross of $76k.
I have systems in place and have a good handle on remotely managing an str. 
Mammoth is a hot market (despite, or maybe because of all the snow... lol). Lots of competition. 

About the unit:

1br plus loft, will sleep 6.
Needs some updating, but that is one of my specialties. 
Appraisal came in at $522k - UNDER accepted offer, which is an entirely other thread.

Competitive analysis for 2br units in my adjacent area. Removed the ones with zero rentals etc:

Avg nightly rate: $235
Avg occupancy: 54%
Avg gross rev: $47k
Top performers are upwards of 85% occupancy and $86k gross - and I've stayed in the top grossing unit. It was nothing special. 

STR analysis from Avery Carl attached. 60k ($13k higher than average) seems to be my break even with the current interest rate. Note - cleaning fees in the calculator max out at $300 total monthly, so I'd expect an additional cost here. (I believe it's a bug in the calculator @Avery Carl.)

Q: Assuming seller will agree to reduce price to appraisal value , am I crazy to think I can beat the averages on occupancy?
Q: Historically, does anyone have data for inventory in ski towns? Better to buy in summer or winter? I've heard anecdotal evidence that suggests inventory is higher in summer, however interest rates will likely be higher then too!

Any input would be appreciated!

Join us at Booze Bros in Vista on June 30th for a casual meet up to talk all things real estate. All levels of investors are welcome!

DM me to join our local Facebook Group.

Hey BP, 

No idea if anyone will even see this :) but we are looking at purchasing a 2 bed/2 ba condo in Mammoth within a 10-minute walk to Canyon, Eagle, or village gondola. 

I'm struggling to calculate a decent cash on cash return and wondering if anyone has a baseline for what is a "normal" cash on cash return in the first couple years of an investment property in Mammoth? 

I realize there are a ton of variables that go into it (quality of condo, purchase price, property management), but I'm just struggling to find any deals that make sense and I've been looking for the past 1-2 years.

Thanks! 

Scott

@Elizabeth Seiferth

Any investment path is better than upgrading your primary residence. Sacrifice now and reinvest returns. It is the only way you will see exponential growth. Also, don't consider personal preferences when you are looking for your STR. Be objective and follow the numbers. The rewards for your discipline will be substantial.