All Forum Posts by: Kenneth Garrett

@Kevin Sobilo

Good point Kevin.  There are many ways government bodies function.  I feel the majority of cities follow the process I laid out.  Thanks for pointing that out.

@Chris Brall

I’ve been a building and zoning official for many years.  I am assuming the zoning variation was for a detached garage.  Typically the variance is for a bulk restriction such as a setback issue.  A variance to the zoning board of appeals or planning and zoning committee (depends on the community) requires a public hearing.  That hearing is a recommending body and then moves onto the city council or other full board hearing.  They make the final decision and that is where the ordinance is approved.  If you did not receive the ordinance you then never received a variance. 

Not getting proper permits and following the rules doesn’t benefit anyone, it just makes it messy and can be confrontational.  

Best of Luck.

Looks like this applies to whole house vacation rentals and not an individual room.  The definitions state it is for a vacation home facility and not renting a room.  The lodging room is defined as purposes for defining how many rooms can be rented in a vacation home facility.  I agree @Josh Bowser contact the city for clarification.  

Looks like this applies to whole house vacation rentals and not an individual room.  The definitions state it is for a vacation home facility and not renting a room.  The lodging room is defined as purposes for defining how many rooms can be rented in a vacation home facility.  I agree @Josh Bowser contact the city for clarification.  

I think that is pretty subjective.  I’ve done projects where I’ve had to gut the building.  It all depends on the numbers.  If at the end the numbers make sense then go ahead.  Even foundation issues don’t scare me, but it does scare other people.  Of course, the less work something takes, it generally will cost more.

As others have said it is your return of cash.  If you had to put $40,000 down and closing costs were $5000 and you did some minor rehab $10,000 that’s a total $55,000 out of pocket.  If your net cash flow for the year was $5,000 your cash on cash return is approximately 9%.

I spent 30 years working for municipalities.  Until it’s done you never know which way it’s going to go.  In general, the staffs recommendation is pretty much what is followed.  Maybe a change here or there, but for the most the staffs position is followed. It is staff who deals with day to day enforcement of the rules and problems with the rules.  Elected officials also here the complaints.  I would wait till they are done.

If it is a draft and it’s not ready for discussion at the committee level it’s only possible changes.  There is no point in looking at a document where it may not pass as drafted.  Many of these go through a couple of rounds before they get finalized.  When the meeting is set up then the draft is published for view.  It needs to be an agenda item.  It is up to the city’s discretion whether they will share the document.  I would ask when it will be discussed formally.  It may be months down the road, they are just giving you a heads up.

It’s tough to buy a property with potential regulation you are not aware of.  I would hold of on buying in that city until you know more information.

@Peter Jin

Anything over 10% is a good return. I have completed a lot of BRRRR projects and those are usually in the 50% range. A direct purchase of a rental with no rehab, I would want 10% or greater. 10% would be my minimum in this market.

@Patrick Forelli

When you buy a property as a second home you are signing loan documents and they state at least mine did; I had use it at least 14 days a year and  I could not have a lease on it.  Sounds like mortgage fraud.  If you want to use it as a short term rental you should select a different loan package.