All Forum Posts by: Nicholas Utesch

The challenge we have is she set the log in up with her personal credentials and not our company credentials (even though it is our company bank account, EIN, etc.).  I wonder if they'd be able to update that if we prove ownership?

Hello,

I was curious if anyone in this forum could provide feedback about an issue we're encountering with a 4 plex that we have done AirBnB on for around 5 years.  I am a co-owner of the property (50/50) and my business partner had one of his employees initially set up our listing for the 4 plex.  She is the listing admin contact and is in Oklahoma City, where my business partner lives.  The property is in Fort Lauderdale and we have a co-host in Fort Lauderdale that has been our boots on the ground, handled all guest communications, guest check ins, etc. since we started.

The person that works for my business partner is no longer working with our LLC and she is refusing to transfer ownership of the listing to us--That AirBnB account has our LLC EIN, the property is owned by our LLC, The bank account is our LLC and she has zero ownership of the LLC, EIN, business account the AirBnB revenues are deposited into, etc. We are getting conflicting information from AirBnB.

Logically, I would think we could keep all 500ish of our 4.92 star average reviews we've worked hard for over the past 5 or so years on all 4 units by proving that nothing is changing with ownership of the LLC, Bank Account, EIN and that we basically just have a rogue former employee that doesn't want to release the listing that was set up under her personal account with her credentials. I'm also hearing that we may be able to retain all of those listings by filing a suspicious activity report with AirBnB indicating her non compliance in transerring the listing with us and prove our ownership of that LLC, bank account, EIN, etc.

We are very concerned about losing those great reviews--nothing will be changing on our end (bank account remains the same, EIN remains the same, boots on the ground host thats done all communication remains the same, etc.).  If anyone can share any feedback on whether or not its possible to keep those reviews, I would appreciate any input.  I'm not well versed in AirBnB rules as most of my rental units are long term so this is a bit of uncharted waters for me.  Thank you!

I use Two Doors Realty in OKC.    They should cover Newcastle since it is a suburb.   I have 25 residential units and they manage a majority of them.  They have Reasonable fee structures and responsive staff.   

Jon Pitcher is the owner and their website is at:  Two Doors Realty

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $260,000
Cash invested: $65,000

2 Duplexes in SW Oklahoma City in the Moore School District. Purchased both duplexes for a combined total of $260,000 ($130,000 per duplex). Haven't updated anything in the property (slightly dated) but the cash flow is pretty good--$750 per month (which is below market value) per unit so this returns $3,000 per month.

What made you interested in investing in this type of deal?

The numbers made sense. Great purchase price for 2 duplexes ($260,000 for both--That works out to $130,000 per duplex). Location is good--in a desireable school district (Moore Public Schools) and convenient to shopping areas

How did you find this deal and how did you negotiate it?

Thru a local real estate agent

How did you finance this deal?

Thru a 75% LTV commercial loan

What was the outcome?

Units have been consistently full. Not too many repair issues.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $530,000
Cash invested: $780,000

4 plex in Wilton Manors/Fort Lauderdale Florida. One 2 bedroom 2 bath unit, One 2 bedroom 1 bath unit and two 1 Bedroom, 1 Bath Units. Located approx 2 blocks from Wilton Manor's famous Wilton Drive. All 4 units are AirBnB / Short Term Rentals. (Before and after pics included--Unit was a Yellow exterior (picture 2) and very dated on the interior (Pic 3) at time of acquisition.

What made you interested in investing in this type of deal?

Great location--2 blocks from Wilton Drive in Wilton Manors, Florida--lots of tourists like to visit this area to visit the bars / restaurants on Wilton Drive. Decent price at the time (although the property needed a lot of worked). We wanted to rennovate this and convert it from long term tenants to Short Term / AirBnB rentals

How did you find this deal and how did you negotiate it?

Thru an agent in South Florida

How did you finance this deal?

Commercial loan at 75% LTV originated by Mandy Hansen with MidFirst Private Bank in Oklahoma City

How did you add value to the deal?

Extensive Renovations--interior and exterior

What was the outcome?

The property is performing relatively well. Consistently averaging approx $12,000 in monthly income from all 4 units

Lessons learned? Challenges?

Florida contractors can be challenging. It is very challenging to get people to show up and do things on time in South Florida.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $560,000
Cash invested: $560,000

2 New construction duplexes. Each unit is 2 bedrooms, 2 baths, 2 car garage in a location that is centrally located in Oklahoma City. Each unit is approximately 1,000 sq. feet so the total of the 4 units is right around 4,000 sq. feet.

What made you interested in investing in this type of deal?

Brand new construction so the property will have limited maintenance issues for a while. The price of the property for new construction was reasonable, especially considering the cash flow.

How did you find this deal and how did you negotiate it?

Off Market deal--purchased directly from the developer/builder who doesn't list the homes for sale on the MLS

How did you finance this deal?

Paid Cash

What was the outcome?

Signed a contract to purcahse the units in November of 2020 and construction took approximately 14 months. When I signed the contract, I was projecting the esitmated rent at $1,100 to $1,150 per unit and we ended up leasing all 4 units at $1,275 per month wihtin a few weeks of closing.

Lessons learned? Challenges?

Rents generally rise over time so it's important to consider the possible future earnings potential. When I bought it, the returns were looking nice at a $1,100 per month rent estimate but it's nice that when construction was completed the market rent was $1,275 per month so that was an extra bonus of $175 per month per unit (or $700 per month total) over my initial cash flow projections when I signed the contract to buy the properties.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $359,000
Cash invested: $359,000

New construction Duplex. 4 bedroom, 2 bath, 2 car garage located in the highly desireable Oakdale School District in the Oklahoma City Metro area. Approximately 2,900 square feet total (1,450 sq. feet per unit).

What made you interested in investing in this type of deal?

Purchased the home from the developer at a $13,000 discount over what all comps had sold for (last property in the nieghborhood). Desirable location in a very sought after school district and the property has 4 bedrooms which is ideal for families with school aged kids.

How did you find this deal and how did you negotiate it?

Off market deal--purchased from a developer that does not list his properties on the MLS

How did you finance this deal?

Originally financed the property with a 75% LTV conventional investment property mortgage at an amazing rate (2.875% on a 30 year fixed). Ended up paying off the loan in Early 2021

What was the outcome?

Property has consistently been full--Appreciation has been great as well--present market value estimate around $475,000. Cash flow is pretty good

Lessons learned? Challenges?

I kind of wish I wouldn't have paid off the mortgage so quickly--It's not likely that we'll ever see a 30 year fixed investment property duplex rate at 2.875% again in my lieftime but I wanted to eliminate the payment and increase my monthly passive income by getting rid of that payment.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $440,000
Cash invested: $440,000

New construction 4 plex in Oklahoma City--great freeway access and conveniently located--10 minutes to downtown, 10 minutes to Edmond, 10 minutes to Chisholm Creek. Two units are 2 bedroom, 2 bath 1 car garage and Two units are 2 bedroom, 2 bath, 1 car garage. Each unit is approx 925 sq. feet (approx 3,700 sq. feet total)

What made you interested in investing in this type of deal?

Great price--New construction quadplex in a good location for $440k. Minimal maintenance issues since it is new construction. Grat cash flow

How did you find this deal and how did you negotiate it?

Off market deal--purchased directly from developer that does not list his multi family properties for sale

How did you finance this deal?

Paid cash. Added a 75% line of credit to access equity if the need ever arises

What was the outcome?

All 4 units have stayed full since closing. Rents are increasing and the neighborhood supports current market rents at approx $1,200 per unit, raising the cash flow up to this property up to around $4,800 per month as old tenants leave and we raise the rents to the present market.

Lessons learned? Challenges?

The property was broken into one day after closing (wow! Not a pleasant phone call) and someone stole all of the appliances from all 4 units (they were vacant at closing). Added an alarm system to the property after that happened).

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Mandy Hansen with MidFirst Private Bank is an excellent multifamily lender in the OKC area and she originated the 75% line of credit against the property.

Investment Info:

Townhouse buy & hold investment.

Purchase price: $381,000
Cash invested: $381,000

Townhome located at The Hill in Bricktown, Oklahoma City's entertainment district. Approx 1,850 sq. feet, 2 bedroom, 2.5 bath, 2 car garage.

What made you interested in investing in this type of deal?

It originally was a unit I purchased to occupy as my primary residence. I ended up wanting a larger unit in the same complex so I retained this home and converted it to a rental property

How did you find this deal and how did you negotiate it?

Purchased from developer

How did you finance this deal?

Originally financed with a conventional mortgage

What was the outcome?

It has been consistently occupied. Not the greatest returns in the world (Approx $3,000 per month rent on a $381k purchase price and HOA dues / taxes are high (approx $1,000 per month for HOA dues / taxes) but I have picked up some decent appreciation--presently worth approx $525k

Lessons learned? Challenges?

The tenant quality has been great and I've consistently had good paying tenants that tend to stay long periods in that monthly rent price range. I'll likely hold for many years due to it being little to no maintance (HOA maintains all of exterior) but the cash on cash return isn't great due to the high fixed costs (HOA dues, property tax).

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $790,000
Cash invested: $790,000

New construction 6 unit property (3 duplexes--each unti 3 bedrooms, 3 bathrooms) next to Oklahoma City Unviersity, a prestigious liberal arts university in the Oklahoma City Metro Area. Approximate combined square footage for all 6 units is 7,600 sq. feet (approximately 1,250 sq. feet per unit).

What made you interested in investing in this type of deal?

This property presented a great cash on cash return. Each unit rents for $1,500 per month and I was able to acquire the property as a brand new construction for $790,000. Great price per foot and excellent cash on cash return / monthly income

How did you find this deal and how did you negotiate it?

Off Market deal--purchased from a developer that was building for his own portfolio that decided to sell.

How did you finance this deal?

Cash deal. Added a line of credit for 75% of the property value in case I ever needed to tap any equity.

How did you add value to the deal?

Purchased in a transational area of Oklahoma City that was just starting to get developed and gentrified. One of the first new construction projects in this area in 2018 and the neighborhood surrounding it has since experienced a tremendous amount of new construction, gut rennovations, etc.

What was the outcome?

A long term hold that generates excellent monthly income

Lessons learned? Challenges?

Don't be afraid to invest in an area that might be a little fringy but has a great location (this one has great proximity to a popular area (Uptown / 23rd) and has excellent appeal as it is right next to a prestigious local University so students enjoy having other housing alternatives.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No agents Involved. The 75% Equity Line of Credit was originated thru Mandy Hansen at MidFirst Private Bank in OKC--she is an amazing banker for commercial / multi family.