All Forum Posts by: Justin Koopmans

Oh @Kevin Hill do you mind if I ask who your property manager is? As mentioned I've interviewed five and one of them charges 10% - I wonder if it's the same guy.... if not I'd definitely be interested in chatting with them if you're open to referring them!

@Kevin Hill Thank you for the response! That is super helpful to know what others are doing. I've heard some say that 50%+ occupancy is do-able but I was skeptical- that's awesome to hear that you're rocking at 65%! And those are very good questions - some I didn't even think of! I'm sending my agent an email right now.

You are correct on the St. George rules. But there are a few "select" developments that do allow the vacation rentals. You can find this list on the city's website (it is not entirely up to date for the most recent additions) but luckily we are included there! I'm happy to send over this list if you'd like it.

@Sofia Sharkey I'd love to see your analysis! As mentioned my rental is in St. George city itself - but I'm definitely curious about the other areas too. All the data I can look at would be super helpful! Is email the best way to share that? I'll PM you with my email - or just let me know what would be best. Thank you so much everyone for your responses!

@Cason Acor thank you for the suggestion! I checked out AirBnB for the area - but I should also check out VRBO too.

Hey everyone! I'm under contract for my first vacation rental property! It's a 5 bedroom luxury townhouse in St. George. I've spoken with five different property managers about occupancy, nightly rental rates, and income projections and they are all over the board. Does anyone have experience with STG vacation rentals? If so any guidance or thoughts on what kind of income it could / should bring in would be helpful! Just trying to do due diligence. Thanks!

Hello everyone!

My wife and I have been looking for our first RE purchase for a little while now. But we come from a background of investors so we haven't been looking for that "perfect home," we're looking for the perfect investment that can double as a home. 

Anyways, I think we've found it. 

Get this:

Asking price $120k

Repairs: $20k-$30k

ARV: $220k-$250k

Now, here's the issue. We don't have $120k cash, and the home needs some minor repairs before it is lendable (probably around $7k), and it's a foreclosure and they will MOST LIKELY not do any repairs before closing (they're looking for cash buyers obviously). 

It's been on the market for 2 days and the seller's agent expects multiple offers very soon. 

The way I see it, here's my options. I'd love feedback on my ideas and if anyone has any ideas of their own please chime in!

Option 1) Offer significantly higher with a conventional loan and hope they go for it over a cash offer.

Option 2) Do a 203k loan (which I'm positive they will just ignore)

Option 3) Hard money loan so we can play with the cash guys...? Which I would repay with a Home Equity Line within a month after purchase, or with a traditional mortgage within 6 months... But all the hard money companies I've seen will not loan on primary residences.. Does anyone know of a company (or individual) who would do otherwise for a great deal and someone who has great credit and which would be repaid very quickly??

Let me know your thoughts on these ideas and if you have any others. Thanks!

Thanks everyone for the responses! @Derrick E. you're totally right and that's awesome that you've bought a couple places like that! I'll just keep going like you say @Alex Deacon and keep offering. Hopefully I'll find a seller that just wants to be done and will accept 20% less than asking. We'll see! Once I find something I'll let everyone know :)

Hey everyone!

I'm looking to purchase my first property! It's exciting but I've been at it for a while and it's been tough to find something. I'm in a high market right now (near Sacramento CA, Amador County to be specific) so that is part of the issue, but I believe there are deals everywhere. So I just wanted to put out WHAT I'm looking for and see if I'm being realistic. 

1) Planning on purchasing an SFR with a live-in-flip type strategy

2) If it is fixer than I want 20% equity in deal (i.e. if the home's ARV is $300k then my max purchase price is $240k minus repair costs)

3) If its not really a fixer, or minimal fixer then I want at least 15% equity (home with ARV of $300k then my max is $255k minus repair costs)

I've offered on a couple properties so far, both were rejected, which is fine. I'm ok being rejected and I think it's going to take several offers before I find someone willing to sell at this type of discount, but I feel like it will be worth it in the end. 

But what do you guys think? Is getting 15-20% equity a realistic goal in a hot market? Am I out of my mind? Advice, support, stories, etc. would be appreciated! Thanks!

Hey @Grant Smith, so I'm somewhat in the same boat as you, currently in the 'finding deals' stage. So I probably can't help a whole ton. But I might know of some people who can. What areas in NorCal specifically are you looking at? 

@Robert T. So I have considered a 203k loan... My lender is not too enthusiastic about them and so we are going to try and see if the seller will pay for the fixes first, but we may need to go the 203k route. 

Thanks for the response!

So.. Here's the situation.

• I've found a property I would like to purchase 
• The bank won't loan on it because it needs some rehab
• I would like to get a hard money loan to purchase it and fix it up
• Then I would like to move into it and pay off the hard money loan with traditional financing.

I'm a newbie, especially to hard money, so help me understand... Is this possible with hard money? Most of the sites I have visited from BP's featured lenders page say explicitly that they will not loan on owner occupied homes. But "technically" it's not an owner occupied home right? At least during the course of the hard money loan. 

Is this an issue? If so, are there ways around this issue? 

Oh, and if anyone has any recommendations for hard money lenders that they've worked with in the past that would also be super helpful :) thanks a ton!