All Forum Posts by: Ken Gurta

@Todd Goedeke I didn't have a full year of Airbnb data from the seller as well as other units for sale due to Hurricane Sally repairs. Most units did not open until March 6 or later. They also closed sometime in October when all of the units were to get new windows. So I only had 8-9 months to go by. That was enough for me. I Got another booking last night which put me over $19k. I appear to be on track to top $30k with total expenses to be no more than $22,900 this year. So it looks like I will hit those numbers. 

@Dave Foster, Thanks for the advice. It's not exactly what I wanted to hear, but it makes sense. You explained it very well. Can you give me any advice on how to make sure 100% of my 1031 proceeds go to the purchase of my replacement property? I just went through this process a couple of months ago. Somehow a few hundred dollars were left in my 1031 after closing. Neither the title company, lender, or 1031 company could give an explanation. So I had to have the 1031 company send me a check that I will be taxed on.

I will be selling a rental house very soon. It should go on the FMLS in 2 weeks or so. I will be spending approximately $5000  on repairs before selling it. Can I ask to get back the money I spent for repairs at closing before my equity is sent to a 1031 exchange company? 

Investment Info:

Condo buy & hold investment.

Purchase price: $254,900
Cash invested: $87,000

I purchased a condo at a resort. It is a block from the beach.

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

My unit is in Purple Parrot Resort. It is a highly sought-after vacation destination. I am using it as an Airbnb short term rental

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

I booked an Airbnb to stay in Pensacola to look at property. My Airbnb host turned out to be a realtor. He showed me around. He found my condo on the FMLS.

How did you finance this deal?

I used an asset-based lender. I had funds in a 1031 exchange from a sale of another property that I used as the down payment.

How did you add value to the deal?

The condo came fully furnished. We changed out most of the paintings, added beach knick-knacks, a play station, a ring doorbell, and a few other things.

What was the outcome?

We went live on April 1, 2022. Our first guest booked with us 10 minutes after going live on Airbnb. We already have almost $18,000 in bookings for the year even though nothing is booked from August 1st on. We will make a profit in our first year.

Lessons learned? Challenges?

We have only had 2 challenges; 1. We had a squatter that somehow got into our unit before we went live. That is when we added a Ring doorbell and changed lock codes. We have a Kwikset lock that gives every guest their own personal code. 2. When it storms or the power goes out, it disconnected us from our lock and doorbell. So we bought a repeater that reconnects to the wifi quickly. My fiance had to drive to the condo with our 3 phones to sync them with the door lock. But everything is ok now.

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

yes

Thank you, Satish. I was hoping to avoid taxes or fees for both states. I Have a lot of experience with real estate investing. That said, I do not have a lot of knowledge of getting a LLC. I regret to admit that I have been away from the Bigger Pockets podcasts for a while. Your advice is good enough for me. I will look into setting one up in Florida hopefully tomorrow.

I am purchasing a condo in Florida that is in a resort and is 1 block from the beach. I will be renting it out via Airbnb, VRBO, or other. My lender is requiring me to form an LLC for this property. I live in Georgia. Should I form the LLC in Florida where the property is located Or should I form it in Georgia where I live? Please give me your opinions. I own SF homes in other states that are not in LLCs due to lender guidelines. Thank You.

I would like to get everyone an update. My Heloc finally closed. I started working directly with the loan originator's boss and was able to get approved after jumping through a few extra hoops. I am now scheduled to close on the 2 houses on 02/28. I did, however, follow up on a lot of the advice that I received in this thread and really appreciate everyone's replies. I have another deal waiting in the wings once these 2 close. I am sure that there will be new and unique roadblocks. Stay tuned!

@Jerry Padilla   It is my primary residence that I am getting the Heloc on. I am kind of hesitant to do a cash out refi because my interest rate is 3.375%. One of my rentals has a similar amount of equity.  It is in a 15 year loan at 3.75%. 

@Chris Mason I'm guessing that my lender pre-approved me because I had completed 4 deals with them in the last year or so.

@Eric Veronica Unfortunately, My lender does not do Helocs. I have done a cash out refi and 3 purchases through them because they have the best rates and closing costs that I have found.