All Forum Posts by: David Hanson

@Julie McCoy, @Navin Chopra Totally concur with what Julie says. HOAs can ban rentals altogether, have a rental cap (ie max % of non-owner occupied units), or no rental cap at all.

@Melissa Romano Hi, thanks for the offer of recommendations, I'll PM you.  cheers.

@Stanley Bronstein Yep, I ran into that HOA restriction already with some condos in Glendale; on the house the listing agent says he'll double check for me. thanks for the reminder.

@Michael Greenberg Hi Michael, will do.  thx

@Ryan Swan thanks for the insights. Trying to reconcile and balance the higher prices of being more central with the expected extra rent and occupancy in those areas, against lower prices out in Glendale.

Hi, looking for some advice on the best area of the greater Phoenix valley for a short-term rental, ie AirBnB.

Thinking Glendale for access to the local stadiums for NFL, NCAA, NHL, and MLB spring training but worried about being out in Glendale vs Scottsdale, Arcadia, Tempe, or Phoenix proper. Anyone have experience there? I'll be an out-of-town owner so will need a full service STR management company too. thanks in advance.

Long post but wanted to get you all caught up.

Getting up the courage to make an offer.  Here are some of the changes I've made to my numbers in the past 10 days partially based on this thread and a lot of reading:

1. Property tax: increased by 20% to account for the county possibly increasing that based on the sale

2. Capex budget: Broke down individual large ticket items such as roofs, water heater, appliances, asphalt repairs, flooring, heaters, etc. by the effective and remaining life to create a capex budget. The buildings are old so that number turned out to be quite large (almost $1400 per month) and really affects cash flow and cap so not sure that's the best way to think about it. I then figured I'd give some credit to the probability of increasing rents to sort of offset that, thinking that its not quite fair to budget for future capex spend without also assuming some rent increase in that same future time period (some of the units already have had their rents increased so I believe such rent increases are plausible). Any thoughts on that?

3. Compared property mgmt companies and came up with 8% average 

4. Quoted insurance and it's more than 3x what the seller tells me he pays so not sure what's going on there and I need to double check the quote.

5. Down payment: little less than 10%

6. Total cash: budgeted for closing costs, inspection and initial repairs needed.

OK, At my projected offer price (which is $250k below asking) I'm happy with all the numbers:

CAP: 7.4%

Cash Flow: $850 per month

CoC return: 16%

DSCR: 1.23

I think I've covered off most everything but if you guys see anything odd let me know.

The biggest issue IMHO is the offer price being so much below the asking. I'm going to write up an LOI but not sure when I'll have the guts to send it to the owner.

Cheers.

Hi, we have a house in Bellingham that is coming available I think the first week of December and we're having an open house this weekend on Sunday. It's about 6 years old, 3br/3ba, 1400sq feet, attached 2 car garage, $1500. Message me back if she's interested.

Brian Doyle Agreed, Definitely will look at all financials if /once we get to MA.

Antonio Guerrera, Jr. My goal for the next few properties is focused on cash flow so I won't do the deal unless I have significant cash flow. Thanks for the support. Eric Li Those comparisons to safer returns are helpful. I meeting with a commercial broker at a local portfolio lender today and he will review the numbers and tell me what their requirements are. That will help a lot to understand the strength of the deal at least in context of what they'll lend on, I already know their DSCR minimum is 1.2.