All Forum Posts by: Noah Hoffman

@Pete Perez 

It's hard to know exactly.  I havnt seen inside the units.  The city is Vacaville 

Hi Wes,

Thanks for the very detailed reply!  

Hello,  

I have been hosting airbnb units for just over 4 years and its great. 

I agree with several previous comments. 

You can make over and above what you earn with long term tenants,

It does take time and effort (management) which is what I do as a co-host for several owners I work with. 

Guest communication is the biggest factor as well as repairs basic maintenance and explaining how things work in each different unit to a stream of new guests.  

Make sure the property would be at profitable with long term tenants because it may end up with them sooner than you think. 

Supply and demand is closer to hotel rooms than long term rental units -  this past Nov-Dec-Jan has been very slow which means prices have been down. 

Airbnb is working closely with city councils that opt in to hotel tax collection - for example the city of oakland and San Francisco has accepted airbnbs offer to collect a 14% tax for all stays under 30 days. 

Ok I want to get some opinions on how bad this deal is. This is about a 1 hour drive to San Francisco- So rents are below market but that doesn't mean we can raise them anytime soon. --- If I moved into one of the two bedroom units- Including listed expenses it seems that it isn't cash flowing well. Any thoughts? Asking price is $550K Ideal for owner-users who can live in 1 unit and earn income from the other 3. Property has significant upside in rents - all rents have significant room for increases. Rents have been kept low because owner is long-distance manager. Attractive unit mix. No major maintenance or capital expenses required. Selling because wife retired 1.5 years ago, husband is going to retire in the summer. Live in El Sobrante and are selling the property to enjoy retired life. Community park is right across the street. Close to schools, shopping, shopping centers, and downtown areas. * Buyer agents will receive 2.5% commission Building built in 1966. 3,328 sq ft. Lot is 6,018 sq ft. (A) 3bed/1bath - $1100 (B) 1bed/1bath - $800 (C) 2bed/1bath - $900 - section 8 tenant. (D) 2bed/1bath - $850 Expenses: Maintenance - $2,000 Taxes - $5,000 Insurance - $1,125 Utilities - $5,415 (water, garbage) Tenants pay own PGE

Hello,

I am new to BP and wanted to see if anyone had any thoughts on a question I had. 

My question is about buying a multi family property 4 units with a low down payment FHA loan.

If I only put in 3-4 % down how long would it take for me to refinance that property? 

Do I need to have more than 20 percent equity to do that? 

What might the soonest I would be able to refinance or somehow use the property as collateral to borrow in order to put a down payment on another property?

Thanks,

Noah

Hi Ashley,

My name is Noah, I am an up and coming property manager mainly specializing in short term rental (which I started doing in 2012).   I am just now getting ready to make my first investment and have a few sub markets under consideration. 

I grew up in the east bay, Berkeley and Oakland area, now live in Richmond. 

I think this area is very specific with its opportunities and challenges. Including the very high demand as well as things like rent control with specific exemptions and clauses depending on the city. 

Here in Richmond rent control was just voted in but the rent board hasnt been formed yet so there are lots of questions un-answered. 

I think I have a pretty good handle on many aspects but the biggest unknowns for me are possible  maintenance and repair expenses for the foreseeable future as well as the biggest wild card would be when a tenant might voluntarily move out of a rent controlled unit.  

I would be happy to discuss some of these issues with you and you could weigh in on what you think about expenses, accounting etc?