All Forum Posts by: Jon Martin

My biggest concerns with the Outer Banks would be the elements (flood risk, sea level, shifting sands etc) and all the baggage, risk and costs that come with that. Your property tax may be low but your flood insurance could very high. Another wild card could be finding reliable help depending on how remote the property is, so you may want to ask around about that first. Closer to Wilmington this is probably not an issue. 

Both seem like great markets although as an investor I'd go Gulf coast for the same reasons mentioned above. 

That was purely the furniture, as in what we rest and eat on inside the house. I am slightly under $10/sf for those, but if you add sheets, towels, decorations, cooking utensils, patio furniture, BBQ, security etc I am probably  at another $4K for a 1100 SF 2/1. Where it gets confusing is things like the fridge and washer/dryer, which are sometimes included but for me they were not, at which point I am about at $15/SF. 

As for financing, I used a HELOC on my primary.

Everything you said and in the post above is good advice, but the general consensus seems to be that building new is almost always more expensive than buying an existing structure. Often a lot more. Lots of costs just to break ground (connecting utilities, permits, surveys, etc) that will nickel and dime you to death. You will be shelling out a lot of cash and not see a return for a long time. Plus inflated material and labor costs.  

If you are just getting started, I would go with a simple SFH or house hack a multi so you can build some cash flow and equity, then get into a project such as this when you can better manage the carrying costs.

I have no experience with Columbus but of all the cities I researched it trended near the top in regards to home cost-to-rent ratio in combination with good population and income growth. Even off the MLS you can find updated SFRs that fit the 1% rule, so with a multi you should have no issues. Has a nice population size, OSU, large companies, medical campuses, etc. I say go for it!

For long distance, try to find yourself an "errand boy" in your market, for lack of a better term. Someone who can do odd jobs like assembling furniture, accept deliveries, take videos of contractors work, fix small things, etc but won't command a high hourly rate for specialized labor. Start with small low risk jobs and scale up from there as you build some trust. 

I found a guy on ThumbTack for my house in Greenville SC under "Movers". He advertised that he also cleans out crawl spaces and power washes houses, and there is no job that he hasn't turned down. I even had a situation where I would've needed someone to represent me in person with the sheriff and he was willing, but thankfully that situation resolved itself before it got to that! 

I would read up on "Squatters Rights" laws and how long a typical eviction takes to execute. Once someone is in your home for 30+ days, they typically fall into the long term renter category and all the rights that come with it. Not sure about Ohio, but it can take close to a year or more in some states, especially with someone who knows how to work the system. Watch the old classic "Pacific Heights" and you will never want to be a LTR landlord, at least in California lol. 

That said you can greatly alleviate that with good screening, and the higher price point that these types of units can demand should help filter out the deadbeats. There is a lot of value in having a fully furnished home with month-to-month terms, and that demographic is willing to pay for it. 

Another solution is to simply list it as an STR and say "contact host for long term rates". Or you could go directly to the HR departments of these companies.

For 2 bed king frames & mattresses (Zinus), 4 end tables, 4-5 person sectional couch with Ottoman (living spaces), coffee table, dinner table, 4 chairs, 2 entry/mudroom benches and 2 dressers I was right around $9K. All moderate quality but nothing luxury. It's worth it to spend more for durability and to look nice because you will save more in the long run not replacing it and your guests will be happy. However past a certain price point of luxury you are just throwing money away for something that won't get you any extra in return. For example, the stainless OXO utensils from BBB will last much longer than the low end stuff and your guests will be happy using them, but William Sonoma would be excessive.

On Wayfair you need to filter aggressively because they number of options is overwhelming. Filter for "solid wood" for any hard furniture if possible. I bought metal dining chairs because those tend to take the most abuse. I like Overstock too but like Wayfair there is lots of noise (ie garbage). Immediately after you close, have the mail forwarded to your home address and USPS will give you a 15% Overstock coupon. 

Hi Everyone,

Closed on a 2/1 in west Greenville SC recently. Recently a more updated 2/2 just a block away with the same square footage closed for $108K more than mine did! 

As it stands, the layout is good overall but has some of the classic goofy mid-century design factors, and I am working on updating the kitchen and drywall as we speak (floors and bathroom are updated). The main issue is that the only bathroom is on the far end of the house, so the 2nd bedroom guests will have to walk across the entire house to reach it. The other issue is that the "Master" by virtue of proximity to the bathroom and privacy from the street is actually smaller than the 2nd bedroom, and the 2nd also has a fireplace. While I realize that these are not dealbreakers and that STR guests tend not to be phased by these things during shorter stays, I want to make the listing more appealing and also increase the value for a potential cash out refinance.

To add a full bath, I can easily sacrifice some of the 2nd bedroom to add a full 10 x 5 bath and the contractor said he could do one for ~$10-12K. However, in order for the bath to have a window it would need to go all the way to the back wall, which would leave a 5 x 5 space in the middle of the house with no purpose. With a crew working on the first bath it would be an easy add on in terms of work flow and could probably be done for about half the price of the full. 

Would it be worth adding a 1/2 bath in that space in terms of appraisal value if I already have the same number of beds and baths? Or is that excessive given that there would already be 1:1 bed to bath ratio, and not likely to improve value? The other option would be to turn that space into back-to-back closets for the bedrooms or do a pantry or living room closet, since it is pretty close to the kitchen.

Any and all feedback is welcome. Thank you all in advance!