All Forum Posts by: Michael Heisterkamp

That is possible, it all comes down to cost.  Also it opens you up to tenants that don't get along defrauding one another by flipping the switch back and forth.  Outside of these claims there isn't really any issue that I can think of.

@Richard Lovering another point to consider is that the high HOA fees will put a tight clamp on appreciation. If you look into the past sales history of the unit I wouldn't be surprised if you found out it sold for around 100K many times. High fees seriously limit the properties ability to appreciate. But the rents should be able to climb, I would write up a contract and see if you can get the HOA rep to sign that the fees will never rise and make sure the contract is transferable. This will add some value to the property.

Did you use new appliances?  If so warranty replacement.   If not then do what others have suggested and find the part.  They are out there.

@Richard Lovering First thing to check is the condo boards guidelines to see if you can do STRs at all.  Second is if you can look for others in your area doing STRs and ask them for roughly what you can expect in terms of revenues, vacancies, etc. also be sure you ask about seasonal varainces.  These are one of the biggest problem points for new investors in the area.  Then check into property management, cleaning services, etc.  Insurance is another big one to look into.  Once you have all of these things in place then financing is something to consider.  I would say 20% down is a safe target for lending on this kind of property.  

Once you have acquired the property pay for professional stagings and pictures.  These can make a difference in tens to hundreds of dollars per night. 

Also your rent situation could be worse. There is another situation called NNN or tripple net where you pay even more of the expenses. What you need to do is one of two things, show the value of the landlord sharing in the leashold improvements or organize the other tennants to all request improvements at once.

@Zach Reichert My first question is how many doors are in the portfolio?  Second question is can you stand doing the engineering work for free?  Why these two questions?  Well the first is relevant in understanding what type of portfolio we are dealing with here, the second is becuase that is a potential way to put up a "down payment" on the portfolio if the onwer is willing to do seller financing.  Getting creative when you are young and have energy is a great way to get your foot in the door.  

There is plenty of capital while there is a lack of deals.  The deal has more value.

Pam, there are many ways to get financed as Mark has mentioned.  There are also hard money and private loan solutions.

@Derek Buescher I know an investor who has a really interesting strategy in the MHP space.

Nicki, I would love to learn more as well.

@Nick Eldridge Please dm me.  I would love to dig deeper into your experience and see if I can help.