All Forum Posts by: John Robert Kinsella

I Think there may be some mis understanding. This is the state capital of SD. In a good location and good neighborhood. It's a lower income property and there is drug activity. With it being a small town, the perception of it can easily go down hill. 

its known for meth presence, but its probably 5-10 individuals that are causing it. It had 50 calls to the police dept last year. One stabbing 2 years ago(only murder in town for past 10 years).

Its not the big city full of drugs that people think of. Its just got a bad image for a small town of country living folks. Changing that perception is what worries me.

Anyone

Hey Everyone! I'm a fairly newer beginner in commercial type brrr units. Have done multiple brrr single family, but fairly newbie on commercial.

I'm looking at a 80unit complex in a small town of 20k. Previously a 120 motel, converted to mix of 1,2, and 3 br units consisting of kitchenes in each. The reputation on the property is not good and is known for having bugs, a death(stabbing 2 years ago) police and drugs involved. It's currently 40% occupied and being horribly managed. The remaining rooms need flooring, paint, or similar efforts to become rentable.  They seem to be in decent shape.

I'm worried about the changing the image on this property, which I'm projecting to input 150k for part of a new roof, revamping the exterior and new signs(name).

any input or suggestions would be great! The cops and everyone on Facebook says it rough and the cops think I'll always grt this clientele.

 Would it be wrong if I tried reaching out to the other sibling, if I've been trying to work with the other?

They Don't answer my phonecalls, but do respond to texts.

I struggle to find out how often to reach out to people and how to build a relationship over text.

All,

I'm abot confused and reaching out for advice.

I found a portfolio that the owner had passed years ago. The properties have been in his name for nearly 4 years.

I reached out to his children 6 mknths aho, who said it was going through estate. I followed up 3 weeks ago and they seemed friendly and said the estate is nearly done. The thing I'm confused about is the name on the properties has switched to the children now.

I'm curious on what I can do before the estate is done. Maybe I should wait until they get it completely finilized? 

Has anyone worked a deal out while estate is being complete? I don't understand how the estate wouldn't be finalized if it's been transferred into their name??

I'm confused. 

 Also curious on this list

For those that have seen a increase in past 2 years, how much more are we talking about?

20% increase in occupany and nightly rate??????

This would help me identify how much was due to the new owners vs Covid.

I'm having difficulty with a purchase and determing if it makes sense. The thing that worries me is what covid has done to our tourism the past two years. Below I'd the breakdown, but I'm still waiting on the financials from the seller. My main question from the group, I'm in the black hills in south dakota and tourism is up 10%... is this sustainable after covid??? 

sold in 2021 for 350k and owners didn't take care of it. Re sold in 2018 for 330k. I'm able to get for 750k, not on market... multiple cabins in a prime area, but there is competition in the area.im worried if tourism dies down, what my rates would drop down to. Hard to predict due to Covid and what's post covid gonna look like.

2011-2018 they grossed 80k

2020 grossed 160k

2021 estimated 200k

@Will Fraser for my wife and I though, since she doesn't have any commercial loans through her name yet it would be totally separate?

The way I've understood it is the commercial side doesn't look at your debt to income ratio from the personal side. They look at income to help justify the commercial purchase though?