All Forum Posts by: Nick Liddell

Hi Everyone,

I am about to close on an 11 Unit building that will need all windows replaced (31 to be exact). I am looking for advice/recommendations on where and what type of windows I should be looking at? The windows I am looking for need to be black as white windows will not go with the exterior of the building. Also, I plan to hold this building for 20+ years so I am looking for something that will last but also is economical.

Nick

Hello Everyone,

I am about to close on an 11 unit property which all the units will need to be rehabbed to bring them up to market rent. (currently almost in slumlord condition).

The question that I have is it possible to make your rentals "hardened" but at the same time make them feel like they above average rentals. I would love to hear anyone's input on materials (flooring, appliances, paint color, countertops other areas etc.) that have worked for you to achieve this. I am trying to get away from the basic tan paint color, brown vinyl flooring etc. to set them apart from other apartments in the area.

This property is in an upcoming area and I am trying to rehab them to a style that seems "luxury" but still are bulletproof and mid to low market materials. No expensive materials (granite etc.) as the rents won't justify the costs. 

Love to hear anyone's input. Thanks!

Hi everyone,

Looking for some advice or input on contacting a landowner about buying their plot of land. Has anyone had any experience or success writing personal letters to owners for vacant land that is not listed for sale?

A little about the parcel of land:

- It is located directly across from the owners residence. It hasn't been built on for about 14 years since when it was purchased. 

- I don't plan on building a home on the land for at least 5 years 

- The land is the last vacant plot of land in the neighborhood 

- The land has a view and is directly across the their residence. Should I also include that whenever I decide to build, to agree that the home will not negatively effect their sight of the city?

Any advice or input on the way I should write the letter would be greatly appreciated. I am trying to find a balance of expressing interest but not coming off as desperate or trying to make money on the deal.

Thanks!

Nick

Hello everyone, I am about to close on my first flip (FINALLY) and am looking for any recommendations on any contractors in the Harrisburg, PA area (experience with house flipping is a bonus). The GC's I know seem to be geared towards more high end/custom home finishes. Looking for a GC with solid work at a reasonable price. I appreciate any and all suggestions, Thanks!

@Shanna Bechtel That is interesting point you brought up. I sent you a PM.

@Joshua D. Thanks man! I think I could rent it full time for the winter but I am not sure the amount I could charge would be worth it. Its a rather nicer home but a smaller square footage (3BR, 2BA) so I think my ceiling is capped. I think I am leaning towards short term renting over the winter and seeing how it does.

As far as connections, my mom has been a realtor in the area for about 15 years so that has helped me out a lot as far as having access to the MLS and looking at properties. I also have a good connection with a local bank as far as being able to obtain loans.

I have been looking at tax sales but haven't pulled the trigger on any. I am definitely leaning towards splitting the money I have saved on 2 down payments on 2 different properties like you said. Just figuring out which route I want to take as far as location and property type.

Thanks again for the advice and congratulations on getting ready to close on your 7th unit. That is awesome news. Best of luck to you and your wife!

@Dylan Succa Hey buddy, the renting term varies. I have a 3 night minimum set because it really isn't worth my time to have people stay for less than that which means less cleaning and meeting guests. The longest I have had a guest stay was 9 days from 3 guys from California who were working in Downtown Harrisburg. I also have a older couple from out of the country who are booked for 15 days from early to mid October which is pretty cool. 

I have the price a little higher on weekends but not much. I have people who stay through all days of the week. 

I think the success of this is based on the house itself. If I were to try to do this with a normal cookie cutter rental house, I doubt I would have as half as much bookings and probably a much lower price. 

@Jason Stutenroth I am not really sure at this point, still weighing different options. I would eventually like to break into the MF property market but want to wait for the right property. 

I help manage my families portfolio of commercial industrial/flex properties along with brother so I am learning a lot with that and would be interested in expanding into commercial as well.

@Christian Bors The property is actually located in a rather nice area in Lemoyne. Most of my past guests have been Hershey Park families along with people in town for business or attending conventions. As someone who has lived here his entire life, I almost took for granted how much there is to do here and in the surrounding areas. I would like to either buy another short term rental property closer to Hershey or Lancaster, those markets seem to be doing well. Eventually, I would like to diversify my portfolio between Commercial, Multi Family and Short term rental properties. I am also looking at properties that I would have no problem switching to yearly rentals if anything were to happen to the short term market.

And i will definitely look coming into the CARPOA, Thanks!

@Jason Stutenroth That definitely crossed my mind, however the property has been doing better than I originally expected being almost 90% booked into December. It is rather a unique property with a lot of character in a desirable location. 

At the price I have the listing at now, I would only need to have 9 nights out out of the month rented out to break even with all expenses which I think is achievable. I do expect it to slow down (Jan- March/April), but with the cash flow now + the money I have saved, I think I will be OK. But only time will tell.

Maybe It would be a good idea to put a percentage of the money I have saved towards the HELOC like Josh mentioned to get that payment down a bit to help with the slow months I expect to come.

Thanks for the reply guys!

@Josh Mitchell That definitely crossed my mind. I am leaning towards using a percentage of the money I have saved to put towards the HELOC and the rest towards another property, depending on how much it will lower the monthly payment.

@Charlie Claxton That is very interesting, I will definitely look into that. I am somewhat familiar with the existing corporate housing companies in my area but never really did much research in that area. The returns on the short term rental market are very attractive like you mentioned so I would not be opposed to that idea.

Hello everyone,

I am a first time poster and relatively new to the real estate investing scene but I am kind of stuck on where I should take my next steps.

A little about myself:

I'm 25 and purchased my first property last year. I have been renting it out on Airbnb for a few months now after moving in with my gf and doing quite well with roughly $1800 cash flow positive per month. The property is worth 210k and I owe about 140k on it.

This is a more detailed breakdown on that property,

Purchased the property for 195k, put 40k down, did some renovations and had it reappraised for 210k

HELOC payment- $1150 per month

Utilities: $250 per month

Taxes- $200 per month

I have had it on Airbnb for 3 months now and am averaging $3100 per month (June, July, Aug). I do expect this to come down a little now that the summer months are coming to an end.

$3100- $1600 = $1500 cash flow.

I have another 80k saved up and would like to put about 60k towards my next property (leaving 20k for emergency funds, rehabs, personal fund etc.)

I have zero debt (no student loans, no car payment) outside of the HELOC I had to purchase the first property I stated above and most of my living expenses are paid by my employer (car, gas, cell phone).

I am based out of Central Pennsylvania and am looking to stay somewhat locally for my first few properties (Harrisburg, Camp Hill, Lancaster, Hershey etc.) and am not really interested in out of state investing.

Just looking for some advice or input on what you would do next if you were in my situation,

Any input and info would be greatly appreciated,

Thanks!