All Forum Posts by: Nathan Jackson

@Dennis M. It cash flows 650+. Short term gross rent would be low end of 1050 with upside of 1700 (depending on usage and nightly rate increases after we gain traction). 50k all-in for 1k-1700 short term rent OR 50k all in for 750-900 long term tenant. I likely didn't communicate that well, but it's not 650 in rent. 

 

@Michinori Kaneko Yeah the well concerns us as well... We contacted the city but can't be hooked up, so we'll have to figure out how to make it nice+obscure. Cleaning/replens costs will be rolled into whatever we charge them for cleaning, so it should be a break even. The reason I was leaning towards AirBnB is that I don't want to update the older electrical needed for a long term tenant. 

I may not understand if/when a house needs to be fully up to code, but I think I would need to do that for a long term tenant. Between the pipes+electric that would cut into rent profits pretty fast. 

For yard maintenance, I could fence in a smaller portion and let the rest meadow out. 

Zillow+Realtor+Chase+Redfin all estimate the house at 110k. This has a pretty big sway on my mind when I see that I can get it for 40k. Perhaps this is dangerous thinking though? Since this is my first, "I don't know what I don't know."

It's the 2nd or 3rd largest city in Indiana but not really a tourist place. 

People need AirBnB everywhere though, not just tourist areas. Judging by the utilization rate and number of reviews of the other AirBnBs in town, there is not much supply and a fair bit of demand. 

conservatively estimating $70 per night as that's the low end of the area, but with the right reno and marketing I'm sure we could hit $100/night. It's a cheap house in a cheap city, so we wont get 250-300/night rents like other areas do

Hey guys!

My wife and I are fairly certain that we're going to be moving forward with our first deal shortly. If everything checks out, we will be buying a house from a relative who wants to retire. We're completely new to this, but trying to make our first buy. Sorry in advance if anything i say or estimate is way off base.



The house is located at 510 Ansley Dr. Fort Wayne IN

Our offer is for:  Seller financed purchase. Total cost being $40,000 with 10% down payment. We would also add a deed restriction for if we ever resell the property, the owner would receive a % of the future profit (Likely between 10-20%, this is still being negotiated).

It's a 3/1 on roughly an acre of land. Biking distance to Fort Wayne's Upscale Mall.

Current property taxes are roughly $1,000/year
Current owner pays $350/year for insurance.
Current Tenant is paying for electric and sewer (House is on a well, so no water).

We think the property will need $10,000 of work to be ready for a short term rental (Air cons, some drywall work, moving/updating the well, landscaping)

Our ideal plan is to turn it into an outdoorsy airbnb with a nice backyard feature. 3+ bedrooms in the area go from 60-120/night with ~68% occupancy on airbnb. We're conservatively estimating 70/night with 50% occupancy.

Our estimated gross short term rental income = 1050/mo
Our estimated gross Long term rental income would = 750/mo

Our estimated expenses are at $400/mo


TLDL:

-Total Price = 40,00 + 10,000 reno
-All in cash = $14,000
-Estimated Cash flow = 650/mo
-CoC return = 55%
-Falls within 2% rule.
-ARV = (We really have very little idea on this as there are not many similar properties.... and we're newbies. From my research, I think it would be anywhere from 70k-120k)
-Bonus upside that it's located between commercial districts and could have a potential land buyout in the future.

Home run? Good deal? Bad deal?

Thanks guys!

Most of this sadly went over my head (Again, this is my first deal).

From what I've gleaned, it sounds like when I get the title I can add a deed restriction that lets my family member receive some of the profits if the house is sold within X years. How do I go about adding this deed restriction to the title? Is this something that the title company can just simply add if I tell them about it?

Hey guys,

So I've been looking into getting my first deal when a family member mentioned wanting out if their house.

They are willing to sell it way below market value to me, but there is one stipulation.

The property rests between two major shopping centers and there is a good chance that a commercial investor buys the neighborhood for a big lump sum. My family member wants a % of the profit if/when a commercial buyout we're to happen.

Im new to this, so I may be way off base ... But I thought I could likely write in an owner equity share clause into the contract. It will likely be seller financed, so I won't have to deal with the bank on this either. Anyone have experience in having the seller retain a bit of resale equity?

So I'm fairly new to this world of investing, but I'm trying to soak up all the knowledge and experience that I can. I recently came across a listing for a 12 unit complex near an area I'm familiar with (C+ neighborhood. No crime. C schools.), listed just under 50k per unit. I myself am not in a spot financially that I could purchase, and I'm not comfortable with my first purchase being a 12 unit as that seems like a rather huge jump from nothing.

So what are my options as far as anything I could do with this property? I've been looking into Wholesale and may try and go down that road, but I'll need to learn quite a lot more before I'd be able to put anything under contract.

I'm able to look at the property and even check in on it (I'd rather not actively manage something like this tho). I think my options are:
-Try to wholesale it,
-try and "bird dog" it, 
-partner with someone,
-or just watch it and learn what I can about what I don't know.

Any recommendations or comments?

Hey everyone!

My wife and I are looking to get into this whole lifestyle and are wanting to "househack" our way to our FI. I was wondering if anyone had any good resources as far as roommate rental agreements that we can use. Any big tips or things to avoid when adding a roommate to a house? 

Thanks!