All Forum Posts by: Janelle Hicks

Do you mean which cities or which branches of real estate. I'm doing well in Carlsbad NM and would love to see more investors down here.

George- it fell through for other reasons. I can still get HML, just was wanting to buy a new personal home. One of my units has been two years, others are under that.

Hi So I have been running about 6 airbnbs in my personal name, properties owned by me, etc. And then the bank started giving me issues about using Airbnb income for my DTI. So then I (I thought quite brilliantly) came up with this plan to basically have my LLC (just recently formed to try to get a hard money loan and then that fell through so not used for anything yet), lease the properties from me for airbnb, and thus to have a lease available to give to my bank when they ask me for it. So I think that is what you are describing here. So my question is, in a practical, explain like I'm 5 sense....how do I transition to having my LLC "run" the airbnbs. Does it have to go to a separate bank account? Do I have to delist my airbnbs and lose all the reviews and restart them in an LLC-owned airbnb account? Can my accountant do most of it? Can I just write and sign a lease and then voila? Should I close the business credit card I usually use for the airbnb expenses and get that to be in the LLC's name?

Albuquerque you can definitely find these kinds of cash flowing properties. Likely cheap purchase price and also lower rents than your San Antonio example, depending on size and location. The growth/ job market is not as strong as San Antonio ( yet). But it's not as competitive either I don't think. I don't know about the other cities on your list. 

Hi Bill! I've got short and long term rentals down in Carlsbad NM. In my experience the short term rentals make about 2-3x the long term rent, but they are a lot more work. Build a good team for cleaning/maintenance. Also- I think there are some pretty strict restrictions on STRs up north so make sure you are in compliance with those.

Sorry @Patrick Fanning I didn't see this til just now. We were not able to make it work, unless we removed the mobile home, which seller refused, so I decided to pursue a different deal because of it. 

Interested to hear if you found anyone.i have used a lightstream personal loan ( unsecured) in the past instead of a hard money loan. They close very quickly once approved, it seemed like a day or two. I am down here in Carlsbad with 4 rentals and buying a 5th in Ruidoso right now.

Javier D.- Maybe? The problem is going to be lenders- aren't they going to be a pain about purchasing two at once? 

So just sit and wait? I feel like these are all promising deals and there's no reason I couldn't do one now and another later? Me and my husband both have recession- proof jobs, a good amount of savings, and my rentals are performing well despite the pandemic, so I was thinking basically full steam ahead. 

Deal A vacant lot isn't costing me anything to keep it, but I could wait and sell in a few years. 

Deal b I think probably 6 months of repairs but I can afford the payments for as long as it would take from my day job. 

Deal c would still likely rent at my estimate, the college thing is more potential appreciation but the deal is good even without appreciation.

I tend to be stubborn and push forward even when I shouldn't so I may be wrong, but it seems to me that this has to turn around eventually and I'm investing for the long term so why wait?

Which deal would you do and why? 

Ok 3 options we have:

Deal A: package deal with 2 houses (2/1 and 1/1) plus a vacant lot asking 140k. Smaller town. Needs about $15k in mostly cosmetic updates but livable now and could probably financed with regular mortgage. Total rents probably $2k a month once it's cleaned up. I calculated net cashflow at $800 after maintenance, vacancy, prop management etc.  Bonus- could sell the vacant lot for maybe $7k net after realtor fees etc. Worse area than other options but not war zone. Roughly 20% returns.

Deal B: Rough 3/2 house in nice area of smaller town. $75k purchase price, must be cash purchase. Needs about $50k in repairs as it's been vacant for years- new AC unit, new roof, siding/soffit repairs, new flooring, etc. Bonus garage in back has electric and plumbing, could be an ADU but lot of work and money to get there so I didn't even estimate costs. Worth probably $165 ARV without the garage fixed up. Great BRRR, cashflow about $500/ mo but after BRRR would pull almost all cash out of the deal so infinite returns.

Deal C: Ok house in ok neighborhood in bigger city, asking $140k but near major University and new metro services/ path of progress. 4/1 would rent for $2k month with minor updates, but needs a foundation repair (roughly $20k). Still financeable. Bonus potential to finish out small basement area and add square footage. Cashflow about 800/ month but property is out of state from my current area. I calculated 18% cash on cash. 

So I'm at a crossroads here. Anyone got advice for me on which one is the best to go for? Funding comes from my savings/ HELOC. I have 2 other rentals running very nicely so far but still a baby investor.