All Forum Posts by: Nick Frank

@Marc Rice Thank you for the response, I just submitted my offer this evening! 

Hello BP community, this is my first post in the forums and wanted to say thanks to any replies in advance! I just bought my first short term rental investment property on a popular river for kayaking and camping in my state. I am currently planning to rent out a tiny cabin on the property this summer. In the fall/winter I plan to build several more small cabins on the property. First, I wanted to see if it would be better to transfer the property into an LLC immediately or if it's ok to wait a year and get umbrella coverage and short term rental coverage for the property for the time being until I build? Secondly, I wanted to make kayaks and rafts available to the guests if possible because I have a launch/landing point on my property and want to take advantage of the public drop off points in the area. With the kayaks and rafts being an additional liability, I was wondering if there is anything else I need to do to protect my assets if something were to happen?

Hello BP community, this is my first post in the forums and wanted to say thanks to any replies in advance! I just bought my first short term rental investment property on a popular river for kayaking and camping in my state. I am currently planning to rent out a tiny cabin on the property this summer. In the fall/winter I plan to build several more small cabins on the property. First, I wanted to see if it would be better to transfer the property into an LLC immediately or if it's ok to wait a year and get umbrella coverage and short term rental coverage for the property for the time being until I build? Secondly, I wanted to make kayaks and rafts available to the guests if possible because I have an access point on my property and want to take advantage of the public drop off points in the area. With the kayaks and rafts being an additional liability, I was wondering if there is anything else I need to do to protect my assets if something were to happen?

Investment Info:

Single-family residence buy & hold investment in Seville.

Purchase price: $92,500
Cash invested: $25,000

This house is my primary residence that I bought as a foreclosure before I knew anything about real estate investing. It was located right next door to my parents and I purchased it about $13,000 under original appraisal value. It has definitely been a learning experience and really peaked my interest in real estate investing, which brought me to bigger pockets. My plan is to continue working on the place and eventually renting it out.

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

I originally intended to buy a house in the range of $180,000 - $200,000 but my step-dad said that I wouldn't want to be "house broke" so I ended up getting this place and decided to fix it myself.

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

The house was bought by the bank at the sheriff's auction and then went on the market as a foreclosure. Originally put in a lower bid but there were multiple offers, and ended up getting the winning bid at $92,500.

How did you finance this deal?

Traditional financing, 5% down on a 15 year mortgage.

How did you add value to the deal?

I have currently renovated the living room, bedroom, office, kitchen, living room, foyer, and attached garage on my own. I hired a contractor to do the siding, stone veneer and roof. I paid for all materials and labor as I went, and did not use any loans. My next step is to complete the basement, back porch and landscaping on my own.

What was the outcome?

Still living at the house, split the rent with my girlfriend and continue to learn DIY remodeling in my spare time.