All Forum Posts by: Michael Glaser

@Dave Klein as I slowly get a trickle of info through the agent I doubt either scenario will work. Though, GREAT suggestions.

She's remarried and probably in her 60's or 70's. Reshuffling her money like would be troublesome and scary. 

Can you elaborate on this a little more:

"Senario #2 could be you do 10% down, she carries a second for 10% and then you do conventional financing for the remaining 80. That's what I'm hoping to structure on my next commercial deal."

Another idea is to tell her to owner finance. She refinances the property at a low rate for 12-24 months putting my 20% downpayment towards the existing loan. Her payments may go down. She can take my 20% as a down payment to out towards her refinance to insure her payments go down and I can pay above those payments so she makes some money. Maybe this will help her tax burden down the line? It's up to me to refinance and buy the house for her asking price minus the 20% of full asking in 24 months when I get the house rehabbed reappraised?

Or I eat the asking price, try and get a few bucks off and continue with my 5% as this will be my primary residence.  

@Aaron K. the voice of reason was saying precisely this. The other voice(s) we’re saying there has to be another way to lower her asking. 

I’ll put in a offer and let her know it stands for the next 3-6 months. Not sure what else to do.

Been a long week and my brain is having troubling figuring out how to make this a deal. The current market climate is forcing many, more often than not, to make a deal.

Seller moved across the street with her new husband after her 1st husband passed away. House needs some work and the numbers do not work at her current asking. She owes the bank 96% of current asking. 

She owes what she owes and the bank isn't going to give a discount unless she defaults, which she won't. Is there some sort of owner financing I'm not thinking about? Ideas would be that her tax hit would be lessened if we did owner financing over a 15-25yr note. Anyone with experience with this would be much appreciated.

Ideas welcome!

@Paul Sandhu not sure how much you read of my posts, but this will be my primary residence. I'm exploring the options of making this a STR while I'm away for work after my term of primary ownership is over(1-2yrs). I currently live in LA but RARELY work there. So if I'm going to live somewhere when I travel I might as well have a primary residence where I want to live/vacation/work from. A lot of my jobs can be from international, NorCal or SoCal or basically anywhere. This property is a happy medium of a location I want to be, STR potential as an exit strategy or possibly a future vacation home at worst.

@Ken Latchers see above.

Maybe I should’ve subject-lined this as “EXIT STRATEGY FOR RURAL HOME | AIRBNB POSSIBILITIES”

@Don Konipol as told @Nathan Gesner in a previous post this would be a rental 12 months after purchase which are within the loan guidelines. It'll take me a while to get my house up to date. I don't currently have a primary residence as I travel a great deal for work. I appreciate your mortgage fraud warming but this will be my primary residence for at least 12 months and probably longer. 

@Dave Meyer here's how I came up with my ranges. I'll only do the likely.

I was able to see the property on Tuesday and it definitely has more potential than I expected. 

I'm 6'4" and was posting the original post in a window seat of a Southwest flight and had probably 20x combinations of spreadsheets so apologies I wasn't more precise. 

Cliff Notes: The one BP Calc I posted took the Stabilized monthly cash flow from the spreadsheet of $1,475 + my mortgage $1,793 since the calc takes out my mortgage. Not exact, but close enough for a 'cocktail napkin' sardined into a window seat spilling ginger ale on my keyboard. 

My lending officer was working on a mortgage of $300K. So the numbers I was working off of was worst case getting the house at $300K. 

P&I - $1,260

Property Tax - $313

Home Insurance - $100

Mortgage Insurance - $121

The mortgage will be more like $1,600

A little background on me is that I own 7 properties in Kansas City and manage them all remotely. I have my plumbers, handymen, painters, HVAC etc. With that said LTR and STR rentals are apple and oranges I do realize. There's a contractual obligation to have someone at the ready for the worst case. My realtor has two houses in the same neighborhood that she manages herself. I haven't gotten my hands dirty with discussing her managing the property yet but that's my current plan. Plan B is another property management company to manage in the next town over. Need to get the house under contract, but that is a paramount worry of mine.

I'm only putting Nest cams in the showers and changing areas...

... wait? No, I mean, I'm putting the Nest Cams in the house looking OUTSIDE. The front window looking out, back door, possible the tree looking back onto the property, etc. All above board. 

If this property was half of the 2 properties like this one than it would be 10.5 nights a month. Putting those numbers into my BP Calc I'd be breaking even. May through Sept is almost 90% accuracy for homes that are half as nice as this will be when done. Winter/offseason is in the 73-84% percentile. 

Subject line says it all. What am I doing wrong?

@Michael Baum it's not quite that simple. You're looking in a valley with drastically looking scapes. Like having an Airbnb in two different areas completely. The only two houses in my neighborhood DID have 97% occupancy this last summer according to Airdna. I believe it too having been up here during the summer numerous times. Hotels are completely booked in the summer. Since this in a rural area going anywhere beyond 20 miles will give you drastic differences. You can go from alpine to high desert in a matter of 30min. One of the two homes in my niche neighborhood was booked 20 nights Oct, 17 for Nov and the other about the same. You're pulling numbers from highway towns with populations of less than 1,000 people. 

For now, if I could get 75% occupancy for the summer that should pay for my mortgage which is a win for me. 

@Ken Corsini 

I have three scenarios listed. At the very least the "Worst" scenario is inside of reality. 

I take it you brushed over it.

@Chai Xiong income takes into account that so I didn't enter all the items you typically have for a rental and Airbnb. This is a calc for 16 days at $225. If you add the mortgage of $1700 to the "Stabilized Monthly Cashflow" of $1400 comes out to be that number you see on the calc, give or take.

This would be after the first year of ownership as this will be my primary residence. Probably going to take me at least 4-6 months to rehab, couple more months cultivate AIRBNB furniture. I’ll get to enjoy it for a few months before, get the kinks out & before I bring it online late 2020. 

Worst case is I have a kicka$$ vacation home.

Another possible revenue stream is the amount of car commercials that are filmed in the area with limited accommodations. I have a long lost of production companies that would like to base out of the property for a few days to a few weeks.