All Forum Posts by: Leo Poon

Thanks for the suggestions guys and gals. 

@Luke Carl Thanks buddy!

@Teri Feeney Styers Yes, each room is already equipped with coffee machine, TV, and cable. I was even thinking to do a bike rental where I can put the bikes in a storage room/garage with a smart lock, so when the guests paypal me the bike rent and deposit, I can send them the code to unlock the storage room/garage. When they return the bike to the storage room, I will refund the deposit back to them.

@Michael Greenberg Yes, it will work with tiny houses as each tiny house is a unit. But are you talking about the tiny houses on wheels or the one that is on the ground?

@Uriah D. Sounds like we are thinking the same thing. Have you thought of using the smart lock on the bedroom door as well? 

@Michael Newman The rate varies from lenders, but it is usually between 6% to 8% right now. Some lenders will hold the loan for 25 years and no ballon during the loan period, but most will have a 30 years mortgage that ballon in 5 years or 10 years, which means you pay a monthly mortgage as a 30 years term but you need to pay the remaining balance at the 5th year. Most investors will refinance with the same lender or a different lender at the 5th year. However, there is risk involved when the economy goes south or funding tightens, you will not be able to refinance or get funds at the 5th year. Therefore, you will get foreclosed on the property. 

This could be a unique scenario on STR. I have come across an opportunity on a real Bed and Breakfast but with no breakfast served, and it has been running as Bed n Breakfast for the past 10+ years. The property has 5 bedroom units, each with a private bathroom, with 1 of the units being an owner quarter. Everyone will share the living room and kitchen.

Now I want to automate everything. I am thinking to install a wifi smart lock on the front door, so guest can come in the front door with a digital code. Each bedroom unit will have a door tag number from 1 to 5, and I plan to install wifi smart lock on those bedroom doors as well, so guests can self-check-in according to each door tag number and the digital code I send them. The code will expire when it is time for them to check out. Then the cleaning company can come in and get the bedroom unit ready for the next guest. I intend to automate it out of state.

Have anyone done something similar where you install wifi smart lock on the front door and the bedroom door? It's kinda a new twist to the old Bed n Breakfast model. Love to hear all the suggestions and comments. And a big thanks for @Lucas Carl for answering my questions!

@Michael Newman Hi Michael, good to see you are passionate about REI and looking to close a deal. I had the exact feeling when I was in my early 20s. You got some part of commercial loan right, with 5+ units, some commercial lenders will not be as strict on credit or W2. Heck, you can even be unemployed to get a commercial loan, but here's the catch. They will all require a hefty down payment starting from 20% to 50%.
So if you are trying to get a commercial loan at 6% with no credit or W2 and have less than 20% downpayment. You will just spend the next few years calling different lenders to get rejected. On the other hand, if you can come up with 20% to 50% down payment, then I am sure there are lenders who will gladly do a loan base on the financial of the property. The reason behind this is because if you fail to pay the mortgage, the commercial lender will just foreclose the property and sell it at a discount which is covered by your down payment. 

@Alexander Flores The HUD amount is the purchase price of the property right? Is it from a portfolio lender?

@Michinori Kaneko I am near Flushing area. How about you? I am debating either buying commercial or buy smaller duplex or quadplex with cash, then refi later. It really depends on the deal, so I am not rushing. And I plan to invest outside of NYC. I used PenFed Credit Union for the HELOC, the process was very straightforward and got the fund within a month. If you are interested in discussing real estate, we can meet up in Queens sometime.

@Michinori Kaneko My situation is exactly like your’s. And I have recently obtained a HELOC as well. My thought is you have 10 years before the HELOC mature, and imagine the properties you can acquire over the 10 years period. The appreciation on the properties will be enough to pay back the HELOC with this conservative approach. So I wouldn’t worry so much at the end of 10th year. If you use the HELOC and leverage more with cash out refinance, you can accumulate a lot more with BRRR strategy. Also, HELOC works as true cash, so you can close properties quicker than most people and giving you a better chance to win an offer.

@Account Closed Yes I can make it, and I agree with Basit that giving everyone a little bit further notice will allow more people to come as some of us may not log on to BP during the Thanksgiving weekend.

@Jason Gilroy Time to lawyer up. You might be able to sue your neighbor for his negligence of letting homeless people get into his garage and caused the fire. So discuss with an attorney first.

Sounds good, I know couple people might be interested as well.