All Forum Posts by: Kyle Fugatt

 Hey!

I know this was a few years ago, but how did it pan out?

We manage about 25 STRs in Blue Ridge and would love to help in any way we can!

 Hey! I saw this was 2 years ago, but how was the journey?

Would love to jump on if you have any questions!

Hey!

I agree with a lot of these suggestions, but i think some cant exactly answer your questions. lol

For Furnishings - We mostly order straight off Amazon, Wayfair, and Minoan. Pick your design on Wayfair or Minaon and then go to Facebook marketplace or Amazon to price shop - Make sure to read the reviews! Towels - definately Costco if you can, if not - look at Amazon - Remember to look at the size. When we ordered the Towels for our Hotel, we ordered too small and had to return them all! Check out this Amazon list we built for our clients and new students buying their first one --> https://a.co/dCUgZyv.

Stick to your budget! Just because its "durable" doesnt mean you spend 5k on a bed. 

For the Bed Bugs... Yes a mattress protector is the best way! Mattress and pillows!

Investment Info:

Single-family residence hard money loan investment.

Purchase price: $50,000
Sale price: $210,000

VERY 1ST DEAL!!

Bought and renovated, used Hard Money, BRRRR deal.

Bought with Hard Money, Cash out Refi, pulled out 25k, rented for 15 months, sold for $210k during COVID!

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

1st deal, originally thought i would keep it forever...

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

Grandfather inherited and wanted to sell. he wanted 60k, we settled at 50k, wrote up private contract.

How did you finance this deal?

Hard Money Lender - local ATL lender.

How did you add value to the deal?

Renovated everything myself.

What was the outcome?

Cashed out 25k from refi (used that money to buy a mobile home), rented house for 15 months. After she moved out, we put $5k back in the house (New Roof, paint, new bath vanity), and listed for sale at $185k. Sold for $210k.

Lessons learned? Challenges?

Learned about lending from traditional to Hard money.

Learned construction work.

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

Yes! Paces Funding in Atlanta, GA.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $810,000

SYNDICATION! SHORT TERM RENTAL!!

Bought the cabin for $810k, Commercial Loan, Synidcation, Raised $200k through 506(b).

Re furnished the house, converted 3 bay garage into 2 game rooms and theatre room.

Valued around $1M, with STR income, will be valued around $1.3M-$1.5M!

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

We manage STRs in Blue Ridge, and brought Syndication together with the STR model!

OPM!

Scaling Baby!

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

On market, through an agent.

How did you finance this deal?

Commercial Loan, Syndication - 506(b)

How did you add value to the deal?

Converted 3 bay garage into movie theatre and 2 game rooms.

STR income adds value, now based on Commercial evaluation.

What was the outcome?

we still own it.

Lessons learned? Challenges?

Dont Write off everything on your taxes! You need to show an income if you want to sign on loans.

The biggest challenge was finding someone to sign on the loan with me, i showed no income in 2020, and needed more cashflow on paper.

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

Yes!

 We Cohost Short term rentals and invest in the blue ridge area. I would love to chat!

Hey Quinn,

For analyzing the numbers, where do you get the gross rents? how did you figure that up?

I can help you run the numbers, but i didnt see a managers expense in there either. 

Just send me the address and i can run numbers my way and show you if its worth it. Yours is quite complex to just see if the numbers work or not. This actually looks like my spreadsheet for analyzing MF syndication deals. lol

Hey!

We walked quite a few properties in midtown and some areas around. It depends on the type of rentals. We are moving more into STRs and alot of the condos and apartments do not allow for any stays less than 1 year. We actually did not find any that were for sale that allowed any Short term rentals what so ever. 

For LTR, i think you will be ok, but be careful of the HOAs. They can get you....

Kyle

Hey Kaleb,

I am more in the west ga area, but was in ATL today looking at a MF property to rehab. 

We just listed our newest flip in Lithia Springs about 12 days ago. It is also sitting longer than our others have. This is our 5th one this year, and with COVID, most have flown off the market, except for now. We also have some friends and family in the same boat, with their newest flip sitting - its just the time of year. 

I did not look at it online, but in my opinion, staging isn't necessary in this market right now. If it goes back to precovid market, or maybe a little slower, than virtual staging may be an option. Its only about 150 bucks. 

If you do end up refi out of it, think about putting the money back into furnishings for using it as a STR. We have a few in west ga, alabama, and about to open a couple in N GA mountains. I can look at the numbers for you if youd like to see if its worth it or not. We turned a LTR into an STR and the rents 3x the fair market rents.

Good luck with it - stay calm, i know it can be a little unnerving at times. lol

Kyle

@Hanan K.  Congrats on your cabins! If you need any help with prices and occupancy, we can help!

Do you have access to AirDNA? We can help you find realistic expectations for the STRs. We own a couple STRs and own a management company for them as well. We help friends and family and cohost some as well. If you want to chat just let me know - and anyone else here having questions. Would love to run some and help design them as you buy them ;)

Check us out at CherokeeRoseHomes.com

Thanks,

Kyle