All Forum Posts by: Mark Cermak

@James Carlson I did not end up buying it. Even though it would cash flow well, it was just listed for wayyyyy too much for what it was ($$/SF wise). I think I'd rather be the guy that BRRRR's something like that into existence than the guy that buys the finished product. Waiting for the right opportunity - the market is HOT!

Hi there! I'm currently looking to form an LLC / Partnership Agreement to get started on doing BRRRR's and funding them with cash up-front. Looking to fully vet this out before getting started and want this to be set up correctly from the start. I've spoken to a CPA/JD and understand how to best set things up from a tax/liability standpoint, but the last piece that's missing is this: HOW DOES A BRAND NEW LLC (with no tax returns/credit history) GET FINANCING FOR A RE-FI ON A BRRRR? The whole point of this is to be able to replicate it, and if you can't get a cash-out refi, it doesn't work. Who can provide this financing over and over again at 75-80% LTV for a new LLC to leverage funds?

@Brian Ellwood @James Carlson  @Erik Stenbakken

@Erik Stenbakken

Hi there! I'm looking at buying an existing home in Denver (RiNo) that's currently set up as an AirBnB (upper/lower unit).  I'd live in the lower unit and rent the upper unit on AirBnB.  I've done some reading about the regulations / licensing requirements in Denver and I'm curious to hear others talk about any challenges they've had with licensing.  What are some of the challenges you've faced with the regulations?  Can the regulations be navigated if the cash flow is there? Is it worth it? 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $569,000
Cash invested: $80,000

Short term rental cabin in the Smokey Mountains generating in excess of $90k/year in gross income.

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

The high cash flow is what was appealing for this specific deal.

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

I connected with the Short Term Shop (Lucas/Avery Carl and Julie McCoy) and they guided me through the process of getting it up and running.

How did you finance this deal?

Traditional 30-year mortgage (2nd Residence)

How did you add value to the deal?

I made about $12k in improvements upon purchase by fixing up various things around the cabin, including all new TV's in every room, a new theater room set-up, etc.

What was the outcome?

Cash flow is currently trending higher than predicted.

Lessons learned? Challenges?

I've had just about every problem you can imagine with this property, from squirrels in the roof to replacing the oven. There's not a single thing in the cabin I haven't touched at this point from a maintenance perspective. Despite the headaches, it continues to produce cash.

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

Yes - Lucas/Avery Carl and Julie McCoy at the Short Term Shop