All Forum Posts by: Katherine Serrell

Accountant here!! 

What kind of income do you have? If it is just rental income, I wouldnt use quickbooks...I love Buildium as it is a really good accounting software and property management software (if you have less than 50 units) that also runs background checks. 

If you are doing flips, BRRRs, wholesale deals etc and you are NOT an accountant... I would pay your CPA the nominal fee they charge to do your bookkeeping. I am an accountant but dont specialize in that kind of transaction accounting and wouldnt do my own bookkeeping or even do my own taxes if I had any of these complex situations to be honest since I dont do that everyday and the tax law is so intricate and ever-changing. You should rely on experts when experts are needed. 

***NOT ALL CPA's KNOW HOW TO DO THIS KIND OF ACCOUNTING SO ASK!!!****

Hi Mark! Just PM'd you. I was in the same boat last year but now I have 2 STRs in Raleigh that I acquired within the last 12 months that I bought with less than 5% down each and they are performing WAY better than anticipated and I am in the process of acquiring more this year. I have 1 LTR in Raleigh and I have also done an out-of-state BRRR in Jacksonville, FL.

I'd love to connect and help in anyway I can.

I still have the W-2 job (accountant/consultant) but I am officially financially free off of 2 solid deals in a single year. 

Hi Katherine! I have three properties in Raleigh (2 short-term, 1 long-term) and this has definitely changed my strategy. I felt I was getting outpriced so I started buying out of state in Jacksonville, FL last year. However, now I have decided to revert back to RTP and focus on short-term rentals and mid-term rentals. My units in Raleigh are performing WAY better than expected so now I am in the process of trying to put ADU's on existing properties and buy 1-3 more homes in Raleigh, Garner, or Durham this year with big enough lots to potentially put an ADU on them.

Thank you! This new one is in Raleigh. I have two others in Raleigh and one other in Jacksonville, Fl. I haven't been brave enough to do an out of state STR.

@Jason Bott Thanks! 

@William Samuel Craven Honestly privacy hasn't been much of an issue. Out of the ~240 guests I hosted last year, I only interacted with maybe a third since it is self-check in and everything is on auto-message. We had two different guest parties plus a third room that always had a long-term guest (normally a travel nurse or intern here for 1-3 months) so it was a busy year! I made the family room my room and the dining room an office (they connected) and threw some doors up since it was the only room in the home that didn't share walls with guests and that room was on the other side of the house.  Then the living room was the "shared space". I honestly had an amazing experience and frequently have people who are visiting again but not staying with me swing by to have grill with us or go out to dinner. We even got invited to a wedding by a former long-term guest we stayed friends with. You can be as interactive or as reserved as you like. 

Just PM'd you! I am a lender in NC and would love to help in anyway I can. Personally, with my properties, I leverage as much as possible because rates are still relatively low (5-6%) and with inflation at such high rates (7-8% conservatively). Obviously everyone's situation is different but for me, I am more comfortable having debt than having cash sitting around loosing value for now.

Just PM'd you! I had a lot of trial and error on my first couple of units (also in NC in the 250k-350k range) but now I sorted out the issues I was facing and was able to narrow my criteria down to what worked for me.  

Anything inside the beltline is my criteria. Raleigh is growing so fast. A home, especially a single family home, is going to be hard to come by (already is) for the average homebuyer...particularly once Apple finishes construction on their headquarters. I own in 27612, 27603, and 27610. All of my units cashflow and the appreciation has been unbelievably awesome. 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $400,000
Cash invested: $30,000

I am currently househacking a 3 bedroom close to downtown Raleigh and Airbnb'ing 2 rooms. My plan is to build a 2 bedroom ADU in the backyard this year and then repeat the process in 2023.

What made you interested in investing in this type of deal?

I needed a low down payment option that provided a generous return from both a cashflow and appreciation perspective.

How did you find this deal and how did you negotiate it?

Got this gem the old-fashioned way - off the MLS - but offered favorable terms (site unseen, large due diligence, waived inspection & appraisal contingencies) and got it under contract at asking (400k) and it appraised.

How did you finance this deal?

5% down 30 year fixed conventional at 3.99%

How did you add value to the deal?

Facebook market place décor, fresh paint, new fixtures, professional pics, and Airbnb-ready in 10 days. I plan to add a 2 bedroom ADU sometime this year.

What was the outcome?

Best case scenario... great cashflow ($750-1000/month after all expenses factored in) & room to double that after I add an ADU.

Lessons learned? Challenges?

Made about 15 offers before we got this under contract. Almost didn't qualify due to debt-to-income issues since I own 3 other properties with less than 2 years of Airbnb history (2 with conventional loans). Scrambled at the last minute to get the only variable number down - the insurance - in order to just barely qualify. So I basically had awful insurance for a few days then increased my coverage shortly after.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Redfin agent so we got cash back at close (a Redfin thing), I used my favorite lender that I now work for (after sending them so much business).