All Forum Posts by: Kyle Fronckowiak

Thanks for your questions and input. Here’s what I know so far:

My father-in-law is offering to finance the property purchase, but I’m still clarifying whether that means 100% financing or if he expects a down payment.

We haven't yet decided whether to purchase as individuals or through an LLC.

I’m also in the process of discussing the specific terms with him (monthly payments, amortization, balloon payment, etc.).

Could you share any advice or insights on what deal structure might work best in a scenario like this? Your input would be really helpful as I navigate these details.

Thanks again!

Kyle

Hi everyone!

My wife and I have an opportunity to purchase a property in South Lake Tahoe from her father. Over the past 10 years, he and his late wife poured their hearts into building this home (with permits, of course). Sadly, we lost my mother-in-law to cancer two years ago, and my father-in-law has since realized he no longer wants to live there, though he remains emotionally attached.

The home is in its final stages of construction, needing only finish work and a kitchen remodel to be rentable. He has already mentioned that he is willing to act as the bank, interest-free, which is a great opportunity. Without involving a traditional lender, what kind of deal structures should we consider? I’d love any insights on next steps. Thanks in advance!

Kyle

That's fantastic! It's a great way to begin. I did the same thing with an FHA loan when I was starting out at your age 15 years ago. Despite having roommates for 2 years, I have no regrets about taking that step.

Thank you for your comment, Jessie. I haven't heard of the "Binder" technique before, but it sounds like a great idea.

As for increasing the Studio ADR, we are considering offering guests a half a dozen fresh eggs for breakfast since we have chickens. 

Hi All,

Currently, we reside in a 4-bedroom, 2.5-bath house located in Santa Cruz County, California. Additionally, we have a 2-bedroom, 1-bath, 800 sqft. Accessory Dwelling Unit (ADU) that we lease to a long-term tenant on a month-to-month basis for $2,850 per month (inclusive of all utilities), and a 300 sqft. Studio that operates as a Short-Term Rental (STR) generating an average of $2,200 per month.

Our ADU tenant has been leasing from us for the past 4 years, and we have maintained the rental rate without any increases. Rentometer indicates the current market rate to be $3,000 per month. While considering raising the rent to reflect the market rate and adding an additional $100 for utilities, I find it challenging as we have built a positive relationship with the current tenants.

As for our Studio (STR), I would appreciate any suggestions on ways to optimize the income potential of this space. We value the flexibility of using it for personal purposes when needed, but maximizing its potential for income was the primary reason for its construction.

I am seeking input and feedback from the group regarding our current situation.

Thanks!
Kyle