All Forum Posts by: Eric Drum

Thank you all for the very helpful advice! I'll work on checking out DataTree to start. These are all great resources! Thank you!! 

Thank you Carlos! That would be great if you can dig it up.

Hello Luke! Congratulations on the deal and additional opportunity. Unfortunately new construction verse resale will always have a decent spread. Since every market is different you could pull a general search for resales that have sold around that are in a certain square footage vs. new construction. The price per square foot should help give you some general guidance on what you would be looking at to build new vs. finding another existing home. Keep in mind it's always more cost effective to build up instead of out...You mentioned a single story duplex. I'm not sure if a similar design would work with a smaller footprint but 2 stories? The huge "pro" to building new vs. existing is that you can typical get top rent, and have little to no capital expenditure. If your planning on holding the properties for long term you can't go wrong vs. buying a house that's 30 years old and holding it for another 20 years etc.  Another perk would be that due to the proximity you would be able to somewhat force appreciation on all three of the potential homes. Overall, building is going to be rather expensive compared to existing homes but they will sell at a premium and with historical low inventory levels you may be surprised to see what you could get if you build and then sell (or rent out long term as a backup strategy). However, overall it's going to be rather cash heavy and at a potential higher risk.  

That's exciting Renita! Land development can be a little complex but certainly can be rewarding once you figure it out. Your biggest initial hurdles are going to be with your county planning and zoning department and then figuring out your utilities (public water sewer/well/septic/gas/power etc.). I would suggest starting with your planning and zoning department since they will typically have rules and regulations on how you can subdivide your lot and/or build additional structures on the property. For example some locations will allow a single family home every 2 acres and have minimal rules and regulations. However, other counties may have very specific design architectural features, square footage size, buildable set back requirements and the list can go on... Overall, I have heard that most parts of NC seem to be rather builder/developer friendly. Certainly wish you all the best of luck! Feel free to reach out if you have any additional questions. 

I'm interested in finding a good software program that will help find off market land deals. I currently have Property Radar and I like the software for pulling lists etc. However, the general evaluations seem to be way off and more geared towards homes. Ideally I'm looking for a software program that is good at pulling land lists, can be used as a CRM, and is somewhat accurate on overall land pricing/evaluation. I would like to send letters to potential motivated sellers with a actual purchase price but want to ensure the data I'm receiving is accurate. Thank you in advance for the help and suggestions! 

Thank you for the additional details and advice!! This is very helpful and makes sense. Thanks! 

Thank you @Ryan Moyer!! If I'm understanding this correctly people that are managing several STR for other individuals are probably using some type of platform like Hospitable so they aren't having to create individual email/phone numbers for each property they are managing. Does Hospitable just roll everything up into essentially one account? We are using Pricelabs now for dynamic pricing but it sounds like we need another tool/website if we want to start managing multiple properties, correct? Thank you again for the help and guidance!

We are in the process of helping manage another hosts properties. We are planning on working the "front" end of the hosting business (marketing, pricing, lead generation etc.). However, Airbnb is saying that they can't add another "hosting team member" since we already have a email set up with another house that we have listed on the platform. We could become a co-host but it's our understanding that we wouldn't be able to see the revenue and the other reports that a full host could see. We want to be able to see all this information since we will be handling the revenue and bookings etc. We have called Airbnb and they are saying that we would need to create another email and have another phone number and since we already have a listing. This doesn't seem right... Are there any work arounds for this? Thank you all in advance for the help!

Sorry I can no longer attend tonight’s meeting. Will be on the lookout for the next gathering. 

Like others have commented I'm not sure how that specific market is reacting to the environment but have certainly heard that Arizona continues to be hot. I work for a builder and right now most builders are a little nervous/cautious. Is the home finished? And does the builder typically build spec homes? And if so, have they been waiting to list the homes at a later date? The reason I ask is that some builders have a business model based on building finished inventory and have factored in carrying costs while others get nervous if they have a finished home on the books. Overall it sounds like your trying to do a form of a BRRR which can be very difficult with new construction. The pro with new construction is that you may get faster forced appreciation if the pricing is going up but your not going to have much of a value add opportunity… I certainly would be cautious if a builder was discounting a home this much with still such low inventory. For the mortgage it looks like you have received some good advice. On the surface level it looks like you may be from CA so keep in mind you can do a second home (typically more than 100 miles) from you primary residence and only have to put down 10%. Good luck!