Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Reilly Carpenter

Reilly Carpenter has started 6 posts and replied 14 times.

Post: Know any good Phoenix real estate/LLC attorneys?

Reilly Carpenter
Pro Member
Posted
  • Investor
  • Phoenix AZ and Los Angeles, CA
  • Posts 14
  • Votes 3

I am looking for a lawyer to review my LLC and advise on the optimal entity structure for taxes and protection for my Phoenix rental/Airbnb properties. I have reached out to a few and none are taking on new clients. Has anyone worked with someone they'd recommend?

Post: Fix + Flip Financing Options

Reilly Carpenter
Pro Member
Posted
  • Investor
  • Phoenix AZ and Los Angeles, CA
  • Posts 14
  • Votes 3

I am trying to scale my ability to do more fix and flip properties beyond my personal capital and have been looking into loan products for investors as well as talking to friends and family about partnering on a deal. My preference would be to go the friends and family route, but it's been a bit hard to get people to commit. So I am preparing to use a fix and flip product if necessary. They just seem expensive, so I'm curious:

1. If you have used a fix and flip product before (with 1-2 points and 8-12% interest), how was your experience? Was it worth it? Are there any watch-outs you'd highlight?

2. If you haven't used them, are there any other lending products you've found helpful? I've heard credit unions and smaller banks can have more favorable terms or specialty products, as well as business lines of credit. But I haven't come across any that seem viable yet.

3. If you've done friends and family financing, how did you move them from "I'd love to help" to "I'm committed and we're doing a deal" without putting the relationship in jeopardy? How did you structure the split/terms/deal? Any watch-outs?

      Post: 1 Property, 3 Casitas... a good Airbnb?

      Reilly Carpenter
      Pro Member
      Posted
      • Investor
      • Phoenix AZ and Los Angeles, CA
      • Posts 14
      • Votes 3

      @Ryan Swan ahhh gotcha. That's kinda what I figured, but I did hear the two smaller back houses could be rented out as boarder income just like subletting rooms. But that makes sense about metering separately. I like the STR rental potential though and the property is configured well for that. We'll see... it's kind of an experiment!

      Post: 1 Property, 3 Casitas... a good Airbnb?

      Reilly Carpenter
      Pro Member
      Posted
      • Investor
      • Phoenix AZ and Los Angeles, CA
      • Posts 14
      • Votes 3

      Hey @Ryan Swan, it is zoned single family currently and not R3. I’ve raised this with my agent and he didn’t feel it would be an issue but I’m not exactly sure how to fact check that. I’ve also wondered what the implications are for renting it long term if I decide to pivot strategies, but I don’t know how complicated rezoning to R3 would be.

      Post: 1 Property, 3 Casitas... a good Airbnb?

      Reilly Carpenter
      Pro Member
      Posted
      • Investor
      • Phoenix AZ and Los Angeles, CA
      • Posts 14
      • Votes 3

      @Boris Mordkovich awesome suggestion! I was definitely thinking about how to position it both ways: a mini compound for large groups and quaint individual spaces with shared outdoor space, so I’m glad Airbnb allows you to sync calendars on something like that. I appreciate the tip on the premium too. I was thinking the same pricing structure for both but the premium to book it all out is a great idea!

      Post: 1 Property, 3 Casitas... a good Airbnb?

      Reilly Carpenter
      Pro Member
      Posted
      • Investor
      • Phoenix AZ and Los Angeles, CA
      • Posts 14
      • Votes 3

      Thanks @Sofia Sharkey! I’ll check that out. Appreciate you sharing that.

      Post: 1 Property, 3 Casitas... a good Airbnb?

      Reilly Carpenter
      Pro Member
      Posted
      • Investor
      • Phoenix AZ and Los Angeles, CA
      • Posts 14
      • Votes 3

      Thanks @Landon Moore! Great advice on the TPT, I definitely want to make sure I check off all the regulatory requirements ahead of time. As for setup, the beauty of this property is each house has its own kitchen already. The 1/1 casita had a tenant in it previously for $900 a month but I’m hoping with a makeover and Airbnb that number goes way up. We’ll see! Definitely love the idea of grills/lights/hot tub... I was thinking the same thing. Great minds!

      Post: 1 Property, 3 Casitas... a good Airbnb?

      Reilly Carpenter
      Pro Member
      Posted
      • Investor
      • Phoenix AZ and Los Angeles, CA
      • Posts 14
      • Votes 3

      I’m under contract on a property in Central Phoenix that has a main house and 2 casitas all around a central garden. Because the property has 3 detached houses on one lot (a 2 bed/1 bath, a 1 bed/2 bath and a 1/1), I thought it would make a charming short term rental because guests can have an entire home at an affordable rate with nice shared grounds/outdoor space. I’m curious for anyone with Phoenix Airbnb experience...

      1. Are there any policy or regulatory considerations for using the property in this way? From what I've read so far it seems fine as long as they are properly registered under the city's STR regulations.

      2. Do you manage STRs or know of any good management companies for historic STR properties in central Phoenix?

      3. Anything else? What do I not know I don’t know?

      Post: What's one quality you look for in a real estate agent?

      Reilly Carpenter
      Pro Member
      Posted
      • Investor
      • Phoenix AZ and Los Angeles, CA
      • Posts 14
      • Votes 3

      A personal brand/following. On my last deal, I partnered with an agent that has a huge following online and a personal brand known for the type of house I had. The network effect paid off because he was able to sell my home for top dollar off-market to one of his many clients just waiting for houses like mine. And he's also bringing me new deals that are off market, all because of the following and network he has.  

      Post: Historic Brick Bungalow in Downtown Phoenix

      Reilly Carpenter
      Pro Member
      Posted
      • Investor
      • Phoenix AZ and Los Angeles, CA
      • Posts 14
      • Votes 3

      Investment Info:

      Single-family residence fix & flip investment in Phoenix.

      Purchase price: $410,000
      Cash invested: $60,000
      Sale price: $535,000

      This 3 bedroom, 2 bathroom brick bungalow is located in one of the most desirable neighborhoods in Central Phoenix, the Willo Historic District. Though the house was built in 1940, it had great bones and mostly needed design updates to bring it back to life. The house has 1,312 square feet plus a detached 2 car garage with workshop.

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

      I am from Phoenix and know this area really well. Over the years it has seen continued appreciation and continues to be one of the most desirable neighborhoods in Phoenix. I knew the area was strong and would appeal to buyers, renters and visitors alike so I'd have a number of strategies available.

      Initially, I purchased the property as a vacation rental, but after watching the market as I began renovations, I decided it might actually make sense to resell it.

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

      I found the deal from a real estate agent I contacted after finding him through Instagram (he's @thehousejudge if you're curious). I chose him because of his expertise in Central Phoenix and experience doing flips, rentals and Airbnbs himself. I felt like his experience aligned with my goals and he was able to find a deal that made sense for me.

      How did you finance this deal?

      For this deal, I used traditional vacation home financing and was able to get an interest rate in the low 3% range and put 10% down. That financing worked because I was initially purchasing it as a vacation home and the lower down payment was going to leave cash for renovations and furnishings.

      How did you add value to the deal?

      When analyzing this deal, I used neighborhood comps and price per square foot as the primary basis for my valuation. The home was originally listed for $439,000 but had already fallen out of contract so I saw an opportunity to negotiate. I was also looking at what my purchase price would do to cash flow as both an Airbnb and a traditional rental to make sure I was underwriting the deal with wiggle room for multiple strategies.

      What was the outcome?

      I ended up selling the property after 75 days as an off market deal through my realtor. Because of his expertise, network and brand in the area, he had several off-market buyers interested before I even completed the renovations. So it was a fairly seamless transaction. Additionally, I sold it to a realtor and was able to only pay 3% commission to my realtor, which helped with the profit margin on the deal.

      Lessons learned? Challenges?

      1. Having an amazing realtor is an invaluable asset. Someone who can connect you with local experts for the renovation as well as move the deal quickly is the number one reason this was a success.

      2. Know your numbers and don't deviate. In negotiations, I knew what I needed to pay and I knew what I needed to get and that helped me not get emotionally invested on either end of the transaction. I had a plan in place and it was about executing it.

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

      If you're in the Phoenix area, I highly recommend James Judge with HomeSmart. He is an investor himself so he understands the strategies you can deploy to make the most from a property. And he's really well networked and very generous with his advice/help, which was invaluable for me as an out-of-state investor.