All Forum Posts by: Leslie Beia

Hi Jarrod! It would be so helpful to do a 'deep dive': how much did you buy the house for, how many bedrooms, how much do they each rent for? I'm analyzing some houses for this and I'd love to know what your numbers look like if you'd be willing to share :).

I'm looking into this as well and I love the strategy implemented by Dr. Joe Asamoah who focuses on quality homes and solid tenants. He's got a few BP podcast appearances, check them out! I'm pretty concerned to get into this now as Project 2025 is pretty clear about gutting HUD and many social services- the program may be greatly reduced during Trump's term, hard to say. Makes me nervous.

I've also been looking at section 8 and love the episodes with Dr. Joe Asamoah. I'm looking to invest in Detroit, and my understanding is that just because a voucher is worth a certain amount, the municipality may not have that amount to give out- as government funds are certainly not unlimited. What I'm most concerned about is the Project 2025 plan to gut HUD and most social services. No one knows what will happen, but you can read the plan straight from the horses mouth and it does not look good for the future of subsidized housing. I have a ton more to learn and am mostly just here to share your concerns, but after reading a lot of articles I'm shying away from expanding into this territory while he's in office.

I'm considering a property here in northern Michigan as a boutique hostel. It's a former adult care home, so the layout is shared bathrooms, and this would allow me to not have to change the plumbing layout while offering a competitive price-point and unique experience to travelers. Zoning/codes need to be considered for this use. You could also just do a rent-by-the-room for max cash flow. Both of these are management-intensive though, good luck!

Hi! I'm scaling into a commercial property and starting a boutique hotel. Currently, I'm looking at $2.5M all-in for building purchase, renovations, and business start up. My financial models are showing a roughly $250k net profit, so a 10% annualized return. I have a cousin who funds RE deals and he has a whole network of money people, so I am putting together a business plan to submit along with my financials and an investment proposal.

I am coming from single family residential, and have only ever worked with hard money for short-term loans, and also some smaller amounts of private money. I'm trying to wrap my head around working with investment capital long term, and there's also the potential for some seller financing from the building owners, and my cousin is on the board of a bank which could also come into play. This is a lot to consider! I'm curious what would be some different ways I could look at structuring the deal, and is the 10% return going to be attractive to people who invest in deals like this? Thanks!

Hi All!

I'm working on acquiring a former Adult Care Home from a retired couple, and I'm doing research ahead of a conversation with them about owner financing, which they are open to. The building has been on the market almost a year and is probably still a bit 'overpriced', although I have yet to do a comp deep-dive with my agent (soon!). I know that OF agreements will be whatever two parties agree on, but I'm hoping to gain a better understanding of what might be possible that I haven't considered. 

A little context: the building is structurally sound and they have done major updates such as septic, generator, and sprinkler system, and all mechanicals are recently inspected and tagged. The interior and grounds need a major renovation, which I am estimating at around 1MIL. They are are asking $700k currently for the building, down from a starting asking price of $950k. They inherited the property from his father, ran the home for many years, are facing some health issues and are retired. I know they are anxious to sell. The building has been passed over by many people due to the layout, but I have a creative and viable solution (boutique hostel/hotel hybrid in well-established and overpriced tourist destination). 

I'd just like to get a sense of some different scenarios that might be appealing to them, while mitigating my acquisition costs. And is it better to lead with suggestions or follow based on what they say they are open to? Thanks for any input!!

Hi Folks! I've been in REI for about 5 years. I started with an Airbnb, added several more, I am completing my second BRRRR and have successfully flipped 2 houses this year in Austin, TX where I live. This has all been very good experience, but I am ready to focus and scale: one asset class, one location, one strategy.

I am from MI and am starting to spend more time here. I'm excited about the future of Detroit! I feel like a gambler who got pretty lucky in Austin and I would like to get out of there while I'm ahead, as it is still a correcting market and houses are quite expensive. I do not feel I can scale there the way I would like to. I'd like to focus on flipping for the next few years, smaller SFH (entry point up to $150k) in up-and-coming neighborhoods, 10+ houses per year.

I feel pretty confident about the flipping process having done 4 full rehabs as well as several more minor ones. I have connected with an RE-focused agent who is sending me properties to research, but I'm not sure if he is the right fit yet. As I will not be living in the area it is imperative that I have a solid and active team on the ground, and I'm looking to connect with folks who have a deep understanding of the area and would like to do work together. 

I have working capital, a solid understanding of how to analyze properties and the rehab process, and I am great at design. I would be open to partnering up with someone on the ground who can source properties and project manage. Also looking for energetic agents, wholesalers, and other investors who might want to mentor, collaborate, and/or point me towards networking resources. Obviously I don't have much to offer currently in terms of local knowledge but I love connecting and sharing info and plan to be a valuable and helpful part of the investor community there. I am staying up north but can be down there a few times per month. I'll be ready to start buying in September! Thanks and I look forward to connecting with folks. 

After 5 years dabbling in STR's, BRRRR's, and flips, I'm ready to focus on one area and asset class, scale up, and build a portfolio that I can eventually retire on. My cousin's fiance has a painting business and has done numerous jobs for family members over the years. He has proven himself to be a hard worker, ethical, and as it happens, he'd really love to expand his knowledge base and grow into bigger responsibilities. I feel, and he agrees, that we might be able to do some good work together.

My question is what should I be considering as I think about the structure of our working relationship? I know that I stand to make more money per renovation by just paying for the work, but I'm attracted to the idea of partnering with him for a few reasons. One, I think it would give him a greater sense of responsibility, urgency, and dedication. My GC's have been ok, but they know they are getting paid no matter what happens with the rest of the deal, and I like the idea of sharing that risk and responsibility with the person doing the work. It would also lessen my out--of-pocket on either hard money costs or cash I spend, so I'd have more to work with to acquire more properties. I also know that he'd need to grow into the position, but once he has a grip on it and a good team of subs, a partnership would mean we'd work together exclusively and I wouldn't be sharing him with a bunch of other investors!

What I'd bring to the table would be researching and sourcing properties, cash for down payments and other expenses, and design and some finishing material sourcing. He would be responsible for budgeting and managing the renovation entirely. Does this sound like a 50/50 split? Maybe after I am paid a percentage on my cash investment? I'd love thoughts and advice from folks who have done it this way, thank you!

Great suggestion, thank you! Both houses are in Clarksville and thankfully were not damaged during the tornado!

Hi All! I lived in TN briefly and bought several properties there that I manage as STR's, and have a 3rd in MI. They are all currently in my TN-based LLC. I moved from TN to TX and have started flipping. My plan has been to transition out of STR's as I'm getting burnt out, and into flips at least for a while to build capital for longer term, passive investments. I am solidly on that path but need to get my business structures figured out to reduce my tax liability as much as possible. In 2024, my plan is to complete 2-3 flips in TX (already have 2 going!), 1031 my 2 TN properties into a BRRRR duplex in TX, keep my MI STR, and possibly start doing some flips in Detroit as well. Basically, I'm getting all the way out of TN, and doing all my business in TX and MI. Questions:

1. I assume it makes no sense to keep the TN-registered LLC after I sell the TN properties. Do I just start a new one or is there a way to transition to a new state? Does the 1031 process affect this at all??

2. I know I want to start an S-corp now that I'm involved in active RE. Do I need the new LLC 1st THEN the S-corp, or is the S-corp stand-alone?

3. Are there any considerations I should look at when deciding if I should base my LLC/S-corp in TX vs. MI?

4. My current flip is in my personal name- long story, the original plan was to hold it- but I'd like to get it under the umbrella of the S-corp when that's set up, is that possible?

5. Am I at a point where I should have an attorney or other professional oversee and set this all up, or is it still simple enough that I can do it myself online? I have a great CPA already. 

Thanks so much for any guidance!