All Forum Posts by: Matthew Drouin

@Rachel Yakubov do you own your primary residence?  If no, why have you not considered buying a place for yourself before investing?

@Rachel Yakubov  I'm investing in Rochester, NY.  I am getting about 11% cash in cash return on my deals. I have a blended approach of cash flow and equity appreciation and it's worked well for me.  Let me know if you want to talk about what Western NY has to offer.

Alan, I love Warren.  If you have a long relationship with them and this is a one off deal see if they will do the inspection and you can pay for fuel and commute time.  In my ten years of doing real estate I trust no one else besides Warren Engineering and AHA Home Inspections.  Warren is pretty inexpensive so the additional cost for the commute may end up washing out.

Greetings BP forums,

I have a portfolio of 16 residential units, all located in the Park Ave East Ave neighborhood.  I have a one bedroom apartment coming up that I was considering furnishing and doing an AirBNB set up of short term executive rental.  All of my other units are on 1 year leases so this would be my first time and I am just looking to experiment with it and see if I can juice my returns.

Landlords:

1.) What has been your experience in this lane? 

2.) For a higher end 1 bedroom apartment in a great area what should I budget for rental income on either the AirBNB or short term rental market?

3.) How do banks evaluate furnished rentals?  Let's assume it's a 1 year lease.  Will they value the property based upon the rental income for that unit or will the appraiser generally stick to strict market rents for valuation.  The reason I ask, is if the short term executive or AirBNB avenue doesn't operate somewhat in alignment with my expectations, I will just rent it out on a one year lease.

I would love to hear from some Rochester based people on this as well, because our city is very conservative and slow to catch onto stuff that trends in other cities.

Ben, it's great to hear from you.  I am a seasoned real estate professional in Rochester.  I have experience in small and large multi family and commercial real estate management, brokerage, and finance.  Give me a shout if you ever want to chat or get together for coffee.

@Sal Mazzone I have a couple of questions. Is the debt on the duplex in your name or in the LLC name? Even if there is a personal guarantee on the duplex it shouldn't show up on your credit report. It is considered a contingent liability on your personal balance sheet when you go to fill out a PFS or personal financial statement. As long as this loan doesn't show up on your credit, you don't need to report your interest in the LLC to the bank. Well... you should report it but you don't have to. ;-). As long as this is the only hair on your file to purchase the primary residence a bank should fund your deal. The fact that you are keeping your former primary residence as a rental could raise an eyebrow with Fannie and Freddie underwriters though. If you run into an issue with that you may either need to sell it or refinance it into an LLC with a portfolio lender... but you may run into no issue at all.

@Jason Yun  let me know if you want to link up.  Everyone starts somewhere and I would be happy to share my experience with you.  Besides I know nothing about NYC real estate and would be curious to hear about your market!

Ok maybe I need to rephrase the question because the discussion has gotten off topic. Have anyone of you had any experience selling notes held by your self directed IRA. If yes, what has been the best marketplace for selling those notes? The platforms that I have seen so far have very thin markets of buyers and sellers. Is the marketplace for notes just that fragmented?

@Kevin Moen I own and manage a medium sized portfolio of apartment buildings and want to grow that portfolio.  I would like to fund the expansion of the portfolio while preserving as much of my capital as possible.  I figured that funding the down strokes for deals with a 2nd mortgage held by my SDIRA and then selling those 2nd mortgage and notes to note buyers would be a great way to pour gasoline on the fire.

@Percy N.  I guess technically no, you are right.  ;-)