All Forum Posts by: Logan Knight

Elliot, I am specifically looking at what exit strategies are working for people buying only long term buy and holds. BRRRR, I've done and it's definitely an option but more specifically, is anyone using partial ownership/long term JV, 5+ year balloons, revenue shares, etc, where the exit isn't as immediate as BRRRR. I am wanting to scale my buying power with incentives for investors other than basically "hard money" returns.

Hey @Khemraj, I have not bought any properties using DSCR loans but am open to them. What markets are you working in and what markets are you seeing the most success? What's your min ratio and what rates are you typically seeing? Also how do you structure these loans if significant improvements need to be made where rent revenue is 3-6 months away and rental projections are based on improvements that haven't been made yet? Thanks for your insight!

I have been flipping and investing for 6.5 years as a side hustle. Been able to do well flipping 2-3 homes a year in the Boise market, but flipping right now and the returns I'm projecting have me worried. In the current, and what I believe will be the near future of this market, I want to start to raise capital from friends, family, and current flipping investors, to rehab value add single and multi family properties to keep. How are you structuring private money in these scenarios? I have considered BRRRR but with refinance rates as high as they are (and my market depreciating), I can't make them pencil on either side of the deal. I know there are several options and rather than listing all the ones I'm aware of here, I am interested in what is working for you and your investors. TIA!!

@John D. thanks for providing so much value to this thread. If you have any short term rental managers you would recommend that would be great. That's what I am in search of, I've got plenty of help and knowledge about whether I can operate one and how to file the paperwork correctly. 

@Lou V. the type of traveler that's looking for an air bnb style STR is not usually the same type of traveler that wants a hotel room. The fact that there are so many rules, regs, and the eventual elimination of STRs all over the valley makes anywhere that allows them attractive to me. Especially a place that is on a golf course with all the amenities of a high priced country club that any guest can use.

I talked to a few people on property while I was there and that's where I found Randy who manages 80 properties inside of DP. That's the group that is more focused on month+ rentals which may still be the route we pursue but want to talk with managers that are focused on short term rentals before making a decision. 

I just purchased a truly turnkey fully furnished 3/3 1841 sq ft villa in Desert Princess. I have been working to educate my self on all the rules and regs for short term renting a home in Cathedral City. Desert Princess does allow for a minimum of 3 day rentals and I am starting the paperwork to get my short term rental license. We currently reside in Boise ID and don't have a network of home care professionals to feel comfortable managing the property from this far away. We may get there but to get our rental off the ground and start off with the right foot and hopefully positive reviews we want to work with a property manager. 

We just left the property and we will have it completely ready to rent by late July. We met with a local (onsite in DP) property manager while we were in town but his model is more focused on month+ rentals in the winter months. We feel like there is more revenue potential in STRing it plus it gives us more flexibility to use the property a few times a year. We think this also gives us our best chance at a decent return in the summer months. With all the regulation throughout the Coachella valley for STRs we've seen pricing surge on nice rentals that people don't have to commit to 29 days of renting. We also know this comes with more maintenance and higher property management cost. 

Does anyone have a property management company they currently use for a STR in the Palm Springs area that they use and would recommend? What rate should we expect? I would always choose a local company with great reviews and experience over a national outfit. Any help here would be greatly appreciated!!

@James Wise, do you have any turnkey property providers you work with in Cleveland? I am looking to invest in that market as it provides several upsides for me personally with the company I work for being headquartered in Canton. Would love to connect with you and pick your brain about investing in Cleveland. 

I agree with Aaron K. I would buy your home in Boise with a traditional mortgage. Being your primary residence there are tax breaks and you are able to borrow at a lower interest rate. I would use the cash left over from the proceeds of selling your CA home for buying your investment properties and leveraging cash for a better price. 

James, I would be interested. I have flipped 5 homes, all in the Boise ID market (fastest growing city in America in 2018 according to Forbes). I have tons of before and after pictures of all my projects and can provide details on all costs and profits. Let me know if you are interested.