All Forum Posts by: Garrett Laufer

My son wants to get into real estate rentals and has enough to get started with his first property. My concern is the level the market is at currently. Obviously a property that cash flows will weather downturns in the market. Just worried about him starting at a point where it appears there's less upside than down right now.

@Luke Carl This is strictly an owner preference. You have to keep in mind that you are being reviewed as well. We usually look and see if there are guests leaving the same day. If so certainly you're justified in your check in time. If not you might look at allowing earlier checkin if they request it, especially if your cleaning crew cleans the day your departing guests leave. During the off season when we do not have guests back to back if someone requests early checkin we allow 2-3 hours early and let them know we're making an exception to help out. This almost always results in a great review. Certainly it would be great if everyone would just want to arrive at checkin time however there are times where being flexible might be warranted.

@Sherry Byrne Sherry I have a vacation rental in the Ozarks as well. My April bookings fell off but my summer bookings so far are holding up. I read your post regarding the new airbnb cleaning standards. I'm concerned as I must've missed the post from airbnb on the cleaning. We've stepped up our cleaning standards but I'd like to review what Airbnb has setup for requirements. How are they enforcing these new rules? I'll try to find that info. Also, is Airbnb the only platform you book through? I have 2 other platforms including homeaway which seems to have helped since they are not all handling covid the same. Just a thought. Good luck working your way through this.

Yes that's what I'm hopefully trying to accomplish.  Rates are so good right now it would be more advantageous I believe. I'm not sure how I would get reimbursed at close however.  

Looking at purchasing a property that's a normal sale, not distressed, and would like to include some renovation materials. Is there any way that can be arranged in the deal using allowances or some other way?  I could rehab and refi to recoup some or all of the renovation expense however rates are low enough now I may be subject to higher rate when I come back to refi.  Any thoughts or insight would be appreciated.  If anyone has done a deal like that how did you word the offer?  

Thanks Marlen.  Yes it turned out well.  Challenge is keeping it that way as we rent it out.  

Investment Info:

Single-family residence buy & hold investment in Papillion.

Purchase price: $200,000
Cash invested: $25,000

Beautifully updated & spacious walk-out ranch in desirable Lakewood Villages. Extremely open floor plan allows you to entertain on both levels. Amenities include granite countertops, bamboo floors, huge finished walk-out basement wired for sound, deck and new 20' patio. Vinyl/brick makes the exterior virtually maintenance free. Relax on the deck & enjoy the amazing views of the horizon. On a quiet street close to schools and park, yet conveniently located to shopping & major thoroughfares.

What made you interested in investing in this type of deal?

Was going to flip but loved the area and neighborhood so stayed in the property. The market was not where we wanted it when we were ready to sell so we rented it out. It's been our best cash flowing property in our portfolio with the higher end tenants.

How did you find this deal and how did you negotiate it?

Found online on a fannie mae site at the time.

How did you finance this deal?

Financed with zero down at the time.

@Corby Goade. I completely agree Corby. I had no idea what the 1% rule was when I bought my first rental, other than the value after rehab and the potential cash flow. If you manage the property yourself your numbers may be different. Also, we don't know how new or what condition the property is in. It is possible that this scenario over time may prove rewarding down the road. Not everyone had the benefit of buying properties after the financial crisis.

Caleb, my wife and I live in Omaha metro and she manages our Airbnbs.  We can probably assist with what you're needing.  Thanks.

Garrett