All Forum Posts by: Michael Dumler

@Guillermo P Manso, I would be cautious and considerate about investing in short-term rentals across seas. There are so many variables here that it's difficult for me to decide where even to begin. First and foremost, your budget of $200k will likely be tight, respectively. While I'm not well-versed in the market of New York, I think it's fair to say you're not going to find anything within your budget there. Moreover, you mentioned that tax consideration is important to you, yet New York and Texas have some of the highest property taxes relative to other states.

Furthermore, it's vital that you are knowledgeable about local ordinances and HOAs regarding short-term restrictions/bans. The last thing you want is to source a deal that looks great on paper only to find out after acquiring it that the HOA bylaws do not permit short-term rentals.

I hope this clarifies your strategy a little! Based on your criteria, I think it's fair to say that you should at least narrow your search down to Florida or Georgia. After conducting further research, I highly recommend visiting the respective area to get a feel for the market once you decide on one. Many markets, including Atlanta, can vary block by block; hence, it is advised to visit first.

@Tar-U-Way Bright, as noted above, title would be held in your name since you'd be utilizing a primarily home loan product to finance your acquisition. The LLC would essentially serve as a business checking account to collect rental payments from your roommates/tenants and potential write-offs for expenses such as property repairs/maintenance. However, it's always advised to consult with a CPA regarding this, and I'd imagine there may be some nuances since, again, title is held in your name, not your LLC's.

How far along are you in the property search/acquisition process? Which areas of metro Atlanta are you interested in targeting? 

@Jerry Cox, be mindful of your dates and contingencies within the binding agreement if you go under contract. I will say that communication with OpenDoor is much better than that of other institutional sellers I've worked with. That said, expect a 24-48-hour response time to requests/negotiations. 

Moreover, they'll push to close with their preferred closing attorney, which shouldn't necessarily be a deal killer. However, with this in mind, contact the closing firm and ask for an escrow fee sheet to ensure that it somewhat aligns with the standard title/escrow fees that other closing attorneys offer. Furthermore, there is likely an Affiliated Business Agreement Disclosure that you'll need to sign. 

Overall, I've closed on multiple properties with them before and had no issues. 

@Jay Check, I recommend getting licensed if you're interested in real estate sales. As a licensed agent, you have far more avenues to produce income and receive a compensation check than hassling with the grind of trying to wholesale a deal. Wholesaling is a full-time business. I believe you're either in it for the long haul or not at all, but this is my opinion. Needless to say, don't spend thousands on a course when the vast majority of material you'll need can easily be found online. 

I really like Ryan Dossey's content on YouTube. I'd recommend searching and starting there for insight on methods to establish and run a successful wholesale business. 

Good luck! 

@Matthew Samson, I have a connection with a structural engineer I've worked with multiple times on deals in metro ATL who will shoot you straight. Feel free to send me a message, and I can connect you two. Even though there are multiple variables to assess here, what's the age of the property? 

@Andrew Labban, as Josh noted above, our team is highly familiar with co-living properties in metro Atlanta. Andrew, are you interested in working with a platform/company like PadSplit or HomeRoom to help facilitate the process of sourcing and screening tenants, or do you intend to manage this aspect on your own to save on expenses?

I'd be happy to introduce you to each respective co-living company if you are interested in learning more. 

@Chris Brown, Georgia is an attorney state. Without question, do not open escrow or transfer funds without going through a Real Estate Law Firm. 

@Krystle Glass, I haven't heard of many PadSplit properties in Lithia Springs. Nevertheless, it may be an untapped market with potential; I can't say for certain. I recommend connecting and consulting with an account representative at PadSplit to get their intake and see if they can provide any data on room rental rates/demand. If you don't have a point of contact at PadSplit, I'd be happy to connect you with one so you can get the ball rolling ASAP. 

How did you finance this deal? I'd like to hear more about the numbers to help give you a better idea of whether this would cash flow as a PadSplit. 

@Mitchell Kosek, if you can afford to buy in your market, without question, you should explore house hacking before investing out of state. Moreover, think long-term. While we don't have a crystal ball, most would agree that all things being equal, the property in Southern Florida will be more valuable than a quadplex in Huntsville, Alabama, ten years from now. Furthermore, you'll obtain better financing rates/terms with a primary home loan than with an investment mortgage product.

To get the ball rolling, connect with an experienced house hacker and investment-focused real estate agent in your market ASAP. 

Good luck! 

@Seth Gehle, house hack.