All Forum Posts by: Neil Adams

B- neighborhood. Yeah I’m trying to keep conservative. I figure if each unit is open for 1 month out of 12, that’s 8.3% vacancy. I would hope it doesn’t take me a month to rent out, but I’d  rather plan for more, than less. Especially since this would be my first

Also. If I’m the sweat equity partner, shouldn’t I present this this to my partner without the management fees? I figure if down the line I have so many properties that I want to hire a property management team, it would come out of my half of the profits…. Not my partners. Thoughts?

In Florida so it would be lawn care, no snow. Doesn’t that come out of the maintenance withholding?

Hi ladies and gentlemen. Would like advice on a deal evaluation. My first offer on a triplex. Private financing from a somewhat experienced investor who has done a couple flips and a couple rentals. I am bringing deal and sweat equity for 40% of our first deal together.

Legal triplex 816 sq ft. I know it seems small. 2 studies and a 1/1. County tax assessor says 1068 adj sq ft.

Offer price: 240k

Repairs needed minimal. Partially rehabbed already. One unit still needs work. About 15k to bring to good condition(nothing elaborate as market wouldn’t support)

ARV: around 280

25% down plus 15k repairs= 75k out of pocket cost

Current rent:

unit 1(studio) $795/mo

Unit 2(1/1) $850/mo

Unit 3(studio)- assume also $795/mo

Total rent after stabilization: $2,440/mo

Taxes 440

Insurance 200

Principal/interest: 759

PITI: $1399

Maint: 5% $122

Capex 5% $122

Vacancy 10% $244

Property management myself, as I am the sweat equity partner with none of my own money in

Net income 2440

Monthly expenses 1887

Cash flow: 553

COC RETURN on 75k: 8.8%

Brrrr method: 75% refinance conservatively instead of 80%: 210k back from 180k loan. 30k in cash back in investor pocket. Instead of 75k out of pocket, 45k out of pocket after refinance.

New principal and interest: 885/month

New cash flow, down to $427/month

New COC RETURN on 45k left in the deal: 11.8%

Anything I’m missing?

Go/no go?

So someone else mentioned that they are the same. But you suggest arbitraging before cohosting.what do you feel I’d the difference?

Btw, to clarify, I am researching this as an investor/owner point of view. Not as someone looking to manage someone else’s property. But I’m trying to grasp what their responsibilities are, how much you pay them, what are some downsides to having a cohost.... etc

So recently I heard of this word, co-host, in reference to an Air BNB, on a BP podcast. It sounds like maybe someone in a long term lease rents the property while managing part of the property as short term rental? Like a live in manager of an apt complex, but just for 1 particular SFH or apt.

Can someone explain what the idea of a co- host is when dealing with short term rentals? What are the pros/cons?

So I’ve noticed lately that costs of building materials have severely increased over the last year. Between the deficit of plastics coming out of Texas, a decrease in supply from the lumber industry as ppl got laid of during the pandemic, rise in shipping cost, and on top of that.... an increase in remodels from those putting their stimulus checks to work for them. All of which has lead to doubling in price of lumber, drywall, and many other supplies.

So flippers, or investors using BRRRR..... basically anyone who does rehab to their properties after purchase. How have you adjusted your business strategy to compensate for increased prices on certain material costs?

I've started off learning an focusing on wholesaling, but that's just to learn the ropes and practice with acquisitions and gain some capital. My end goal is to focus on marketing to get inbound leads, and let the deal decide what the exit strategy. Primarily building up a portfolio of buy and holds with rehab. Hopefully implementing the BRRRR strategy. I imagine if I need more capitol I can't get from investors, I will sell a rehabbed property rather than hold. And those that don't fit my portfolio I will wholesale to other contacts i have made.

So I’m starting with wholesaling but my long terms goal is to have wholesaling just be a back burner strategy because if I find a good deal, but maybe have too many things on my plate, I still want to be able to act on it, and just make less profit than the full flip.   

I've never actually heard that acronym before. But read up on it a bit. That's the perfect solution I think to get started. So I can give myself a name without yet knowing the best tax strategy between setting up separate LLC's with different private lender partners, one for myself, or whatever my future CPA advises.

So, I should think about my company name, and check my state registry to see if there is an LLC with that name? Then create the DBA and just hope I can still claim it in another 6 months or two years when I decide to incorporate?

So I'm still a newbie but I am searching for my first property.... don't have a website, LLC, business cards, cause I don't need to wait for all that to be in place to actually get started. Right?

Many ppl debate if you need to create an LLC. And typical response is it's not necessary unless you own many properties. You can get the same personal protection by adding an umbrella policy to your homeowners insurance to make sure you have adequate coverage, so you should never have to pay out of pocket if you get sued.... obviously tax questions in play as well, for which is better for any particular person. But I'm not here to go over tax strategies

So my question is: If you are an individual investing in real estate without an LLC, how do you market yourself? Do you buy business cards that just say "my name, real estate investor. I want to buy your house" etc.

Do those without an LLC have a website without a company name? If so, don't you want your website to be associated with something besides your personal name?

What do you guys to, to brand yourself or what you call a company, without an LLC in place registered with your state.

I’m a newbie so let me know if there’s ways around this dilemma. Is it not a big deal? You tell me....