All Forum Posts by: Marcus R.

Well done @V.G Jason!  Been very interested in the franchise/small biz model for a while now.  Still learning for now and saving up so I can do it right.

Scaling fast food with a full-time job is not easy (like you said, if someone calls in sick you gotta show up) but after diving into the economics it isn't worth it IMO if you don't scale.  Single store just doesn't cut it and the model lends itself well to economies of scale...supply chain, GM across multiple stores, etc...

Only looked at fast food and gyms but I'll check out UPS.  Gyms are more of a passion project but even with that the numbers are hard to justify.  Capital intensive, over subscription, high competition, etc...  

Same thing as Bruce with the flood zone...on paper was located in a flood zone but the actual risk seems very low and the owner of the last 40 years never had a problem.  But now that I mentioned it...it'll probably flood tomorrow. 

It was an off-market purchase in Jackson MS with a partner who's local.  Tough market to navigate and very different market dynamics than CO.  Business partner is a real close friend so I just couldn't say no.

Always sending us gems...thanks James!

It's a copycat league so figured we might eventually see this in CO after watching things unfold in CA and FL.  I recently went through something similar with a purchase OOS in a flood zone.  Had some add'l work on the front end but was able to just take over the existing policy.

One potential positive...if you have a higher risk tolerance and you're the buyer use this position to your advantage to negotiate a lower price point. 

We have some experience with this in Jackson MS due to the expansive soil and yazoo clay.  

This is beyond the scope of a home inspector, likely in your inspection report it recommends contacting a structural engineer.  It may be about $500 to $1,500 for the structural engineer but I recommend getting it fixed.  They should be able to draw up a scope of work that you can then take to 3-4 foundation companies to receive competitive quotes.  It's a tough situation to be in but it is a known issue so you'd either have to disclose or fix before selling.  

One thing to be mindful of is jacking up the house may cause settling/cracking in the walls or other areas so you may also have to address those down the road with drywall repair and paint.

The positives...Use this knowledge in your next purchase to land at a better price point. 

You got this!  Focus on the plumbing before the roof.  

If everything else is right with the property then don't let $10K stand in the way. Fix the plumbing and look into 0% APR credit cards for 12-15 months. Fire up the gig economy apps, work during peak demand, and aim to knock it out in half the time.

Recommend the usual suspects as others have mentioned above.  Some alternative methods to consider...

1) Dropping the price or creative move-in specials.  I know, it hurts.  But figure out what a day of vacancy costs and go from there.  Dropping your price by a few hundred is often more profitable than another few weeks of vacancy.

2) Play offense on FB marketplace.  There likely is a group for rentals/homes in your area.  Join that group and actively market your rental and reach out directly to folks looking.  Play matchmaker with people looking for individual rooms and connect them with one another so they can collectively rent together or rent by the room if you choose.  Ex: You'll see 2-3 posts from travel nurses in the area looking for a room to rent. 

I haven't done this but would do it.  Explored doing something similar with car rentals at one of our STRs and others in the area but didn't quite pencil out because of the depreciation on the cars we were considering.  

Sounds like a business problem in the area that needs to be solved and could be worthwhile.  You don't know what you don't know and there is risk involve but I wouldn't let that stop you.

Who knows, you may uncover this local bike rental business is more profitable than your local STR and deserves more of your time. What if you become the local bike rental business that all these other STRs rent from...

Great post, I also have this as a lifestyle goal but adjusted it.  Instead of investing where you want to vacation, invest where you have an opportunity to do best (maybe locally) and vacation anywhere.

It's easier than ever to rent homes, boats, houseboats, huts, treehouses, etc... so invest well (doesn't have to be RE) and take the cash flow from your investing to go anywhere in the world where it's 75 degrees instead of the same places every time.  This also opens up the opportunity for geo-arbitrage.  Best part is...when it's time to move on, you just hand back the keys and you're on your way and don't have to spend time caring for the property while you're visiting.  

If you're just starting out I highly recommend buying a live-in flip. Capital requirements are much lower and you get to go slow and learn the process. Fix it up over 1-2 years then evaluate what's the best play (stay, sell, refi, STR rent, LTR rent, etc...)

Hey All - I co-own two properties in Jackson MS 39211.  Not very active in that market but still evaluate good deals from time to time.