All Forum Posts by: Kyle Tusing

Hi BP community, looking to see if anyone has some experience with STR's in Front Royal Virginia. I have a deal I am looking at and trying to judge how accurate Airdna is for the area, and if the demand for STR's are as high as they appear through Airdna. The property is a fairly secluded cabin property located on a river so I believe it will have demand just wanted to see if anyone has experience with similar properties and I could use recommendations on cleaner/cleaning companies in the area.

Any specific Part of Tennessee? I have a team member in Nashville that may be able to assist.  

Will your mortgage only be for 25 Years? if all the inputted numbers are accurate to the property/market that seems like a good deal with a good return. Obviously depends on what your investment goals are but over 12% ROI sounds pretty good to me!

Are you planning on renting out the property? What would the rent for the property be? Additionally if you do not plan on renting it immediately how soon do you plan on renting it, because when you go to make it an investment you will have to convert it from a VA loan which will require you to have 15 to most likely 20 percent equity in the property. The other financing option may make it easier to make it an investment in the future. Also for the 900 a month you are saving in a year that difference is $10,800 which can be looked at as a 12 percent return on your 90k.

I don't think it makes a huge difference, you have the ability to screen section 8 tenants the same way you screen normal tenants. If you do your best to do that and can trust your judgement on people then both are equally as risky. Because even with non-section 8 tenants you can pick someone who trashes the place, misses payments, etc...

Sounds like you came across a great deal, I have been thinking of the best way to do this but so far not much has came to mind. The only idea I have would be to have a contract where you take a portion of the properties this year and cover part of the existing debt but limit the retired owners gains to under the 250k for capital gains if possible. then take the other portion next year to limit his tax liability and additionally recoup some of your cash lost from the first half purchase.

I would say it's better without a lease, opens you to a wider market of buyers. Additionally makes it easier for any buyer to do any renovations. It also makes it easier for any investor who wants to run rent comps and get a market rent rate not have to worry about if your lease is below what they feel they could get. Just makes things easier, however it is still possible to sell it with a lease in place if you wanted. Is this the only property you are selling? additionally where is it located? I might be interested, would be happy to take a look for myself.

Would be thrilled to connect, the one aspect of investing that I still doubt my abilities on is predicting Rehab costs so I would appreciate assistance in being better at this. As far as BRRR is concerned I like to break it into two parts. First is the Flip, every BRRR has to be a good flip, but not every flip can be a BRRR. I like this because it gives you an early exit strategy if it's always a good flip then when you get to the rent part and rent comps are not as strong or demand is down then you can sell and still make a profit. The key data points you need to calculate a good BRRR are ARV (after-repair value, determined by comps) rehab costs, and post-rehab rent estimates. If the cost of the property and rehab costs equal 75 percent or less of the ARV it has good BRRR potential. This is because when you refinance you want to be able to get all of your invested money back, then the final part is will your refinanced loan payment be less than what you can get for rent. Even if after all expenses you only profit 100 a month your return can be infinite because you have 0$ still invested in the deal. Hopefully this makes sense but I would be happy to connect and try and pass along any knowledge or resources I know/have that could be useful.

Connect with as many people as possible, putting your need/wants out to more people will bring you more potential deals. BP is great and I would look for good investor-friendly agents in your area that may get some off-market deals they could show to you. What parts of Maryland are you interested in? Definitely, a good idea to get the house prior to the baby coming! 

Things I watch are supply and demand; on buying and selling of homes as well as renting and rent rates. Additionally, I monitor the time things are staying listed overall gives you a sense of market activity. I also like to watch the foreclosure numbers and total inventory.