All Forum Posts by: Mackenzie Grate

I would consult a lawyer about your options and I would also call other property managers to see what they would do in this situation. I'm sure property managers have dealt with other more difficult property managers before who have been upset about losing a contract. See if you can get and advice there... I also would call the commission like @Nathan Gesnersaid. Additionally I would file a complaint with the BBB as well. Either way, don't give up. This is your property and you have a right to quality management. Don't let them bully you around. Stay persistent and keep taking action and hopefully they will just let it go.

You got this! I'm rooting for you! :)

I use Simpli Safe. 

I have 3 cameras set up: 1 by the garage to see which cars come and go, one in the front porch to see who enters and exits the house and one in the backyard to see who comes and goes there and what animals pass through. I like the cameras. They are clear and give good footage. 

The only bummer is Simpli Safe doesn't notify you of the motion until it is complete. So if something were happening in real time, you have to upgrade to their emergency monitoring system in order to get that alert immediately. I opted not to do that because with an Airbnb, I would imagine that there may be a lot of false alarms and calls to the emergency number. So I just went with the recording of motion sensor. You can always click on "live video" but that may be after the person or animal left...

Hope this helps! Good luck :)

I agree with @Bjorn Ahlblad I wouldn't charge anything. For some bubbling to happen in a 15 year old floor, even if it was in fantastic shape before...you would have a hard time getting any judge to not consider that "normal wear and tear." Plus, if you plan on selling it without doing the renovations, this sounds crazy but in this seller's market, buyer's like seeing "value add, cosmetic" updates when looking. This is something minor that won't be difficult to replace. Buyers will see this little project and feel like they can tackle it since the whole floor has to be replaced cosmetically anyways. It's not a major repair and won't be a deal breaker for most buyers, especially investor buyers.

Hope this helps! :)

If you are using a HELOC for financing, it's important to go into it already having a strategy in place to get out quickly. That is why this is often used with the BRRR method, because refinancing a property after you renovated it, and then using that money to pay off the HELOC is crucial. HELOCs are essentially like credit cards. They tend to have higher interest rates that fluctuate. And you don't pay anything unless you are carrying a balance. So if you have already charged money towards a HELOC and you didn't have a plan to get out of it before you started, treat it like any other high interest credit card and funnel all your extra cash towards it to pay it off as quick as possible. If you haven't used it yet, make sure you run your numbers on the property you are purchasing so that when you refinance out, you will be able to pull that money out and pay it off quickly.

Hope that helps! Have a wonderful week :)

This is the age old question, lol. Honestly, it comes down to where you are in your investing career and what you need. If you need cash flow to grow your business and to cover your expenses then you need to buy a property that does that straight away. If you have the luxury of having other sources of income and can carry it for a bit, go with the appreciation play as long as it's in a great neighborhood that actually will actually appreciate. 

I'm always the middle one in Goldilock's and the three bears scenario. I need it to pay for itself and then some to cover other rising costs, but I'm okay with less cashflow in exchange for a home in a nicer area that will appreciate more. In the future, cash flow will be less important to me so I'll probably then steer towards appreciation plays more, but right now, I'm still growing my business where my properties need to pay for themselves and then some as well.

So long story short go with what works best with your goals at this moment. You can't go wrong that way.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $172,000
Cash invested: $40,000

I bought this cottage to use and #airbnb out when I'm not there. It was a total fixer upper and I did the classic thing of buying the worst house in the best area. I've spent the last 4 months fixing it up and I'm excited to start hosting some guests! The major transformation included popping out the living room ceiling, to create a loft space instead of an attic. It created a 2nd sleeping space for guests, thus more heads in beds!

What made you interested in investing in this type of deal?

I needed a place there that I can use myself when I'm up there. So this made perfect sense to then do the reno so I can airbnb it out when I am not there.

How did you find this deal and how did you negotiate it?

A client of mine passed on it and I asked if I could put in an offer. She said "definitely." It took a very long time to negotiate because the seller was very difficult to get ahold of. So start to finish it took about 6 months to close.

How did you finance this deal?

Regular financing.

How did you add value to the deal?

I created a 2nd bedroom essentially and added about 200 square feet.

What was the outcome?

After the acquisition costs and reno costs, I now have 85k more in equity on the conservative side. :)

Lessons learned? Challenges?

I learned a lot about buying a country house. There were 2 wells and I needed to get the sulfur water treated. I had to build a second well house for the new well because the one on the property was for a well that ran dry. I also had to get all the electrical updated, including the lines and poles that run up to the street. This wasn't just cosmetic. I had more mechanical work than expected but learned how to tackle it and built a team so that the next one will be easier.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Me! I'm an agent! :)

I am so sorry you are going through this. I see a lot of different possible solutions in this thread. Try them out and see what works for you. 

Don't shy away from critical conversations though. It is your property and the fact that you are taking ownership of it being an Airbnb and you are being proactive to make sure there aren't issues with the neighbors is a great thing. Articulate that when you speak to them. Give them the reasons why the rules are in place. As an educator I've learned that the more you can explain why a rule exists and how it benefits the person to follow the rules, the more likely they will follow it. So perhaps saying something like this:  

"In order to avoid disturbing the neighbors and having the police called, we have to limit the number of occupants because this is a very quiet neighborhood. I want your stay to be as peaceful and smooth as possible so we ask that you please adhere to the limited number of guests. If you can't, no worries, but we ask that you book another property where you can. Any guests that end up staying overnight past the allotted amount will incur an additional fee of _____. I hope you understand, it's not personal but we want to be able to keep this Airbnb open so you can come back and enjoy it again and so others can as well."

And if you require them to pay more if they bring extra guests, make sure you follow through.

Hope this helps. Hang in there and I'm sure you will work out a solution soon. 

I'm rooting for you! Good luck!

Absolutely. Consistency is key. As soon as I buy one, I start looking for the next deal. I am conservative with my underwriting, but I am always in the market to buy a new investment property if the numbers work.

Assuming you have the downpayment ready and that you have reached out to lenders and have a pre-qualification letter, you are ready to go. Find a great agent who knows what you are looking to do and can support you through the process when it gets nerve-wracking. Analyze the numbers on any property they send through and make lots of offers. You will find the right place soon. Don't give up because the market is tough. Just keep going and it will happen. :)

Good luck!

I also would consult a lawyer first before you do anything. I don't know what the laws are specifically in your area. There may be squatter laws that now give her officially tenancy if she's been there a certain length of time or had mail delivered to the place. It's important too that you document every communication in writing. Send notices via email and certified letter so there is proof they arrived. If they don't resolve this amicably it could lead to an eviction so it's important to start building your case now in documentation. We also installed a camera in the hallway when this happened with one of our units to further collect evidence of a lease violation.

Good luck. This is never an easy situation. Hang in there though. This is all part of the learning curve. You got this!