All Forum Posts by: Nate Burgher

We’ve stayed at the same AirBnB a couple of times and found out yesterday from their neighbor that the owners property is actually two lots, and they’ve waffled over many ideas of what to do with that second lot for years. Our young family absolutely loves it here, and have been looking for property in this area for about a year. 

I’m curious on how we should approach the owners to inquire about buying their lot adjacent to their AirBnB? I know AirBnB provides a certain sense of security and privacy, so I don’t want to invade that and come off the wrong way. But I’ve already done research on the parcel itself from the county’s website and have all the info out there. Should I just send them a simple message over the AirBnB app? Should I leave a note with the neighbor to give to them? Should I send the owners a letter in the mail? Any other suggestions?

Hey @Joe Cicero, is this the final closing statement? Sometimes the interim closing docs along the way aren't totally accurate and have weird things like this. Whenever you see these things and have questions, you should be calling your lender, they're the ones that will have the answers. If you're not jiving with their answer, your realtor should be able to walk you through it too and at least tell you if it's normal or not.

Well your LLC is a business / company. Right now it sounds like the father is the one that wants to call the shots / set the terms. Doesn't seem like that's the best way for your business to run. I think you and your business partner need to determine if you need the fathers money to continue to grow, and if so, you need to communicate with the father to find terms that work for everyone. Ultimately though, a good business is one that prioritizes itself financially.

There's about 15 different ways to start, and each of those paths have plenty of turns in them, so on a so forth. So there's no easy answer, just what's best for you. Learn about all of them, read books, listen to the podcast, follow the forums, and educate yourself.

If you haven't already, I'd start meeting with lenders, at least three different ones. They're the ones that will be making the calls / answering the questions you asked, unless you go to private lenders or hard money.

Ask yourself "Will this $800 / month for two years be a big deal to me in 15 years?". I think that will answer your question.

Bummer that Short Term Rental's aren't an option, that thing would kill! The other option I see is a refinance if you wanted to pull a bunch of capital out and invest that somewhere else to make up the difference.

@James Wise please just get rid of all the links we don’t need to see then. Give us the information we want and remove the spam. @bigg@BiggerPockets .com there’s gotta be something you guys can do to resolve this, it’s too widespread.

I hear you, @Antonio Martinez. I guess for me I just want the least amount of risk on the place I personally call home. If I HELOC my home I'm literally increasing risk. But hey, risk / reward? I think it's going to come down to what you're comfortable with doing, but I'll be curious to see what others say too!

Two things that are associated... A 3% CAP Rate is crazy low, but maybe that's normal in LA? It's also low because it's turnkey, the two go hand in hand. $900 out of pocket isn't bad at all for LA, I know that much. I'd be curious though if there's a similar deal to this with Value Add Opportunities, and if you're handy I'd live in the worst one first while I rehab it, and then when a lease is up in another unit I'd move into that one and rent out the one I just rehabbed, and keep doing that cycle until all three are rehabbed (2-3 years / lease cycles). By then, you could refinance and pull out some cash, maybe even more than you invested, and move onto the next project. Just a thought. Turnkey's are nice, but they're definitely not where the value is, they're not gonna be turnkey after being lived in for 5 years.

Hey @Stevie Delacruz, welcome!

Good on you for thinking, studying and reading about REI so young, nice work!

I don't think age is ever a factor, but knowledge and self control will dictate everything. If I were in your shoes, I'd save up as much as I can until I have around 3.5% of whatever it is I'm looking to buy (I'd suggest a duplex, or a house you can rent to a bunch of buddies and you live in one room). In my area, I could get a starter 3 Bed home for $235k and rent out each room for $750. My mortgage (Principal & Interest) + Taxes & Insurance (Read "PITI") would be about $1500 with 3.5% down, so I'd be living rent free. Roughly the same numbers for a duplex, one side pays roughly the PITI and the other side you live in for super cheap or free, maybe even get paid to live there!

Keep on reading and studying. Save money. Stay Curious.