All Forum Posts by: Logan Badenhop

@Greg Dickerson thank you for the advice and getting back to me. With it being a small town I figured the rates would be the best if I shopped local. Being that I would be occupying the top space my biggest fear is the effect on my DTI. I have the money to make the monthly payments to the private money lender no problem. However once you add the rental payment I am paying into the LLC (for myself to myself) my DTI will be lopsided.

Hello, I came across a mixed use property in need of major rehab that I believe has a ton of potential. I already have a private money loan pre approved that would cover the purchase price and the est. rehab for the entire building. This is a retail space with an apartment unit above. The plan would be for my wife and I to live in the 2nd floor unit for 3-5 years (she's already on board) and rent out the retail space below.

The first floor retail space is 1600 sq. ft. and completely open with no partition walls and a basement that can be used for storage of a similar size. It also includes a bathroom and a kitchenette in the back (not part of the 1600 sq. ft.) as well as a 6 car parking lot that is included with the parcel next to the building. The possibilities are endless as it is zoned for most uses including retail/restaurant/bar etc. The second floor is a 1600 sq. ft. apartment with a separate entrance outside and separated utilities already. it currently is 2 bed/1 bath.

Each the units needs about 20k in renovations to be fully operational. The purchase price is 40k so all together I'd be in for around 80k total. The retail space comp. lease rates fall between 600-750/month and the apartment above would bring in 600-650. The ARV should come in around 120k when it's all said and done.

I should also include that this building is in the middle of a small downtown that in the past 2 years has dropped some serious money into revitalizing this specific district which has slowly brought new business to the area.

My questions here are with the cash out refinance. Does anyone have any experience when it comes to owner occupied (as a residence) commercial property and refinancing it. I know the NOI is the biggest factor here but how does a bank look at that when technically it is just me moving money from my personal account to the LLC account (which I am the sole owner of) and then back into my personal account eventually. Is that taken into effect? And what other issues am I going to have with the bank when it comes to refinancing. Obviously I want to cash out of the higher interest personal loan into a longer term commercial loan as soon as possible to increase monthly profit.

Any advice from anyone with experience here is welcomed. Im sure there are other factors I am not thinking about. Thanks

Depending on the location of the house as @Paul Sandhu mentioned earlier it may be more lucrative for you to target working professionals rather than just weekenders. In the past I worked the construction contractor circuit and am currently traveling with my wife who works in the health field. We have found houses using craigslist, airbnb, and vrbo but another one that many people don't mention is "furnished finders". If you don't want to full out lease the house why not meet it half way and offer a weekly discounted rate or a discounted monthly rate? 

Say you rent out 100/night mon-thurs and 150/night fri-sun. That comes to 850/week and 3400/month (850 x 4). But I'm assuming you don't book every day of the month so lets say on average you get 9 nights/month at the weekend rate of 150 and 8 nights/month at the weekday rate of 100. Now you're looking at 2,150/mo.

This is just quick/simple math but if I'm a working professional with a temporary contract or maybe even a snowbird looking to spend the winter months somewhere warm, you are definitely going to get my attention if instead of an added up daily rate of 34000 a month you offer me a flat monthly rate of say 2,500.

Even if that's a little higher than an apartment goes per month in your area you are saving me the hassle of a standard lease, setting up utilities, furniture, you get the idea. plus instead of having 4 or more tenants a month your only dealing with one. At the least I would consider it during the winter months (labor day - memorial day).

Hello Everyone! I am fairly new to the bigger pockets world and trying my best to soak up as much knowledge as I possibly can. To rewind and give a little background I am a practicing tradesman, specifically electrical/plumbing/home inspection and have recently spent the better part last year employed as a remodeling specialist for a military community in central CA. I enjoy the work that I do but the catch in my unique situation is that I am married to a traveling nurse and for the last two years we have been on the go moving from city to city across the US, specifically the west coast. A typical contract for us typically last anywhere from 3-5 months and then it's off to a new location. The good news is we get to pick from all available locations so we do have a say when it comes to that. We both love the lifestyle (for now) but it gets kind of old for me finding new employment 2-3 times a year.

My question to anyone who can point me in the right direction is if there are any avenues as far as real estate goes that I can continuously pursue while my family is in this current transient lifestyle. If there is a specific investment strategy compared to others that I should focus on that can potentially show promise from a remote location? Or are there other careers that involve real estate but not necessarily investing that I can successfully pursue and build on while we are constantly on the go? The moving part kind of puts a damper on the idea of getting any certain licensing in a specific state. I am originally from the midwest (Ohio specifically) and have recently been thinking about planting a flag in a specific market and beginning the team building process. 

I am not looking to get rich quick (although that would be nice) but to find a potential career avenue that fits my current lifestyle and will allow me to build on my real estate education. I have plenty of motivation and nothing but time. Any advice or suggestions would be a ton of help!

If you can offer a furnished location in the general area of a hospital that employs travelers it can be beneficial for you as a landlord. My wife is a traveling nurse and we have been on the go for almost two years now. We started out renting unfurnished short term/month to month but for the last year now we have been lucky enough to rent furnished. How it works is depending on the company you have the choice between taking their provided housing or a reimburses weekely stipend for housing and cost of living which is determined by the county the hospital is located. The stipend is typically 1.5 - 2 times whatever the comps for a higher end one bedroom in the area to give you an idea. A contract is typically 13-15 weeks so it’s a high turnover rate but we have never been anywhere that hasn’t offered an extension. Typically traveling nurses are either alone or travel with a spouse and it is also common for two nurses to meet and then take assignments together so anything bigger than a two bedroom isn’t going to be on their radar. Our last three land lords have rented exclusively to traveling nurses with with 1-2 week gaps in between tenants. We typically pay a little more than your average one bedroom to get utilities/internet provided so we don’t have to set it up for such a short amount of time. Hope that’s helpful