All Forum Posts by: Matt Hogge

Greetings

I am looking to set up a lease on a residential zoned property with four units on it. House is approximately 100 years old but in good shape overall. I plan to rental arbitrage the property and run a short term rental out of the units.

The landlord is requesting a triple net lease. Wondering what the communities thoughts are on structuring NNN on an old residential property ?

Thanks!

@Bruce Woodruff . Thanks for your reply. I think you may have misunderstood my initial question.

I will be leasing the entire property to run my Short term rental business out of. This is rental arbitrage scenario.

These costs will not be directly passed on to our guests.

Does this change your thoughts at all?

@John Mckee thanks for your reply. While it is a residential house, We are leasing entire property to operate as vacation rental.

Does this change thoughts at all?

Greetings all.

I am going into a rental contract on a residential property that has four units on it. The house is 100 years old, but in descent shape, and there is a large yard. The property is going to be used for a short term rental.

The owners would like to set up a triple net lease, and wondering everyone's thoughts on using the strategy on a residential property?

As it stands the rent will be similarly priced as housing in the area, and if we priced it per square foot as I have seen other triple net leases drafted, it is overpriced.

Thanks

Thanks for the insight Brandon and Ethan !

Greetings, and thanks in advance for reading

We have recently gone into contract with a residential house that is commercially zoned in a small town with heavy tourist traffic. We plan on making three different Air BNB units, but it is currently set up for two. We would get a residential loan, and live in the biggest of the 3 units while rehabbing the other two, then focus on rehabbing main unit.

House itself is 425K

Down payment is 39K

Mortgage is 2100

We have a family member who is interested in being an investor, but are unsure how to structure deal, or if we really even want to partner. The family member is knowledgeable, but can be controlling. Having the extra money would make things a lot easier, but we are trying to keep as much cash flow in our pokiest as possible.

We currently have about 35K we could use as a down.

Estimated rehab costs 50K for all 3 units

Estimated monthly Air BNB income is 7500-9000

My question is what would be the best way to structure this deal. If we took the family members money, it would make things easier but how would we split percentages? We have two other Air BNB's as well that do quite well. If they were to come on we just do percentages on this house, or would we have them invest in the business itself?

The other options I have circulating in my head are; hard money lender, 203K, and HELOC on my current home.

Any thoughts on how to structure this are greatly appreciated

Matt

Wish I could make it, but I work late Thursdays. Next Time!

Greetings, and thanks in advance for reading

We have recently gone into contract with a residential house that is commercially zoned in a small town with heavy tourist traffic. We plan on making three different Air BNB units, but it is currently set up for two. We would get a residential loan, and live in the biggest of the 3 units while rehabbing the other two, then focus on rehabbing main unit.

House itself is 425K

Down payment is 39K

Mortgage is 2100

We have a family member who is interested in being an investor, but are unsure how to structure deal, or if we really even want to partner. The family member is knowledgeable, but can be controlling. Having the extra money would make things a lot easier, but we are trying to keep as much cash flow in our pokiest as possible.

We currently have about  35K we could use as a down.

Estimated rehab costs 50K for all 3 units

Estimated monthly Air BNB income is 7500-9000

My question is what would be the best way to structure this deal. If we took the family members money, it would make things easier but how would we split percentages? We have two other Air BNB's as well that do quite well. If they were to come on we just do percentages on this house, or would we have them invest in the business itself?

The other options I have circulating in my head are; hard money lender, 203K, and HELOC on my current home.

Any thoughts on how to structure this are greatly appreciated

Matt