All Forum Posts by: Koren Lavi

Welcome @Jahid M.

I have done all of the above if you ever have questions feel free to reach out!

Agreed with @Ben Rhodin here. When we wholesale in Denver metro its usually 78-80% ARV, we would only go lower if it was a slightly riskier deal (no good comps, stigmatized area, layout that might not make sense, house will be listed in the winter).

Having said that our flippers are still having success with those number because of how hot the Denver area is. 

Welcome @Austin Rueschhoff!

I will DM you the info of a property manager some of my buyers have been very happy with. Feel free to reach out if you have any other questions or need other recs!

Always looking for a good GC. I’ll DM you

Not at all I'm an open book! This was late 2021, purchase price was 270k, and put 20% down. PITI was $1440, it is now $1600. For rent we charged $2400 and have kept it the same so that we can keep the same renters over the last 3 years.

Cash flow has been really nice but we do have some maintenance/CapEx expenses like all homes have: thus far $5000 for a new condenser, $1000 for a new fridge, and $2000 for pest control.

The mortgage interest rates were very low then, so deals might not cash flow this well in the current environment, but I’m sure there are still some deals that are worth the squeeze.

@Brandon Gale

This might be a really bad tip, but one thing thats really helped with my frustrations is using ChatGPT to write responses to those particular type of guests 😂 I’ve noticed doing that is much less emotionally draining than thinking out a diplomatic, compassionate response to an unreasonable person. 

I feel like it needs to be mentioned that this is definitely not something I use for any legitimate issues, I’m not a complete monster lol. 

 Not actively looking for properties at the moment, this was in 2021 and we were just trying to buy up as many properties as we could while the rates were low. 

Since we had that opportunity and wanted to diversify a little outside of Denver we looked for areas that had affordable homes with good median rents. A fair amount of locations that met this criteria were in florida. From there we decided on Melbourne because of job security with the space coast. It was not a driving factor but was a deciding factor to be close to the space coast. 

@Liliana Gala

I certainly wouldn't advise this, but there are DEFINITELY hosts in certain counties that run AirBNBs without permit. AirBNB is trying to crack down on this by requiring permits for certain areas (I had to show proof of permit for City of Denver for AirBNB to allow my listing to go live). But there are certain counties that have made getting a non-primary residence STR such a hassle (*cough* JeffCo *cough cough*), that hosts avoid going thru the process altogether. From what I've been told, the reason these hosts do this is because the counties don't enforce the STR requirement. Too much risk for me personally, but people definitely do this.

I do find it odd that you are restricted on a primary residence. I’ve researched quite a bit of Colorado counties, and almost always the issue is with getting a non primary residence/“vacation home” permit.

@William Silva

After deciding to invest out of state, I actually settled on your home state of FL. Got a SFR in the FL space coast (Melbourne) that I am LTRing. Super cheap houses compared to Denver where I'm at, and good rents. Aside from a rat problem its been pretty smooth 😂

I could not imagine STRing out of state. My local STRs require me to be VERY involved. So to make STR work out of state for me that would require a property manager. To me that expense would negate the increased profits of STR, which is the whole point of STR.

I would find a market with good median rents, and low home costs, and a location that has some indicators that would support future price growth (pop growth, job growth, large businesses/employers moving there). Florida tends to incentivize businesses (tax breaks) and individuals (no state income tax) to move there so it checked that box for me. 

Agreed about consulting with a real estate attorney. I'm not an attorney but when I've researched it, moving title to an LLC, but still having you personally as the mortgagor might not offer considerable protection. An individual could name both the LLC and you in a lawsuit.