All Forum Posts by: Jorge Hernandez

Hello Bigger Pockets

Sssooooooooooooooooo

I found a deal,

The rents are about $500 under market rate. Cool.

After doing the calculation, in which I didn't add my standard 10% for vacancy, maintenance, cap ex or management fee, according to the dscr calculator it equated to a dscr of 1.07.

I had to increase the rent by $300 to each of the current tenants (4) to get the 1.07

The 5th apartment is empty so I am proposing to leave to at just below market value. This apartment has to be rented in order to reach the 1.07 dscr valuation.

The real estate agent valuation is based on having the property 100% occupied @ max market rent value plus the parking. Maybe 4 spots.

I don't know if the current tenants can afford that much of a rent increase. Being in the tenant shoes, if my rent goes up like $500/$600, I can either leave or become a squatter.

It could turn ugly real quick. I don't know if cash for keys is an option.

Real estate agents..........................they never fail. I guess that's why they are called seller's agents. 

Perfoma numbers never ever match. 

I saw an online post that you can form an LLC and use your personal household bills. By paying your household bills, you can build your business credit and leverage the credit to purchase real estate.

I wanted to get feedback on how this concept works if it works at all 

I noticed the bulk of the post about short term rentals is in the Mid west region to western u.s. There doesn't seem to be any post coming from the east coast (north east) 

Does that mean that the north east market is non existent?. Or maybe the Airbnb market is not here. 

Just looking for some insight.

Also, in the arbitrage method, you are essentially lease the property/apartment and subleasing it to your short term rental customers right? 

So with this method you would need

Have your LLC to sign lease

have the security & first months rent (In some cases the last month rent also & maybe broker fee)

Short term rental agreement/rider

Furnish the place

That's about $10,000 (Or just make it $10,000 to make life easier)

Does this sound right
 

If anyone is using a marketing company to handle their direct mail marketing that is producing good results, please share.

Thank you

Hello

I am a New Jersey Resident and I saw past posts about this question. A lot has changed in the past year/s so I wanted to get feedback.

When doing direct mail envelops, some members wrote to use a P.O box, some wrote use a P.O Box that uses a physical address intead of a "PO Box address". 

I was wondering if any members left the return address blank. 

Thanks

That is what I gathered....that they are a good investment.

Excellent cash flow once you have the correct managers in place.

Of coure you are going to have bad workers but like in any field of work, "The next person is waiting for your spot" you can just fire the bad apples. From workers to managers, they all can go.

Once you have the correct managers/workers in place everything should run smoothly. That would be the idea. 

According to 2 franchises they told me that they would getting all the licenses necessary to operate the facility 

 I appreciate the feedback. I appreciate it

 All this CPA, SEO is foreign to me but all the big players (Gurus) use SEO to build their portfolio. So what are the pros and cons of note buying. What does it take to make 100K a year in notes?

 I do know it cost $$ and I am not against that. It seems like this internet game is where it's at. Either learn it or get left behind. Unfortunately the SEO learning curve gets me. It's very hard to wrap my head around it