All Forum Posts by: Ryan Hilbun

I don't have those answers from you but I just wanted to see if you have listened to the latest BP Podcast- link below. Jered Sturm had some interesting info on how he is dealing with water in his recently purchased apartment building. It may not apply to your situation, but thought I'd mention it.

https://www.biggerpockets.com/renewsblog/bp-podcas...

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Originally posted by @Isaiah Turner:

Hello, in the last few weeks I've really grown infatuated with real estate investing, specifically multifamily homes. I am currently a married E-4 in the Army at Fort Bragg, NC. (Fayetteville) My question is should I utilize the VA Loan to purchase a quadplex now or should I wait until I ETS and head to my target market in Houston, TX. Please keep in mind I will be house hacking and I also make an extra $1160 a month in BAH which would be pocketed while hacking. I have roughly 21 months left on my contract.

I would wait.. I have rentals in two different states, currently at Ft. Riley. I manage the rentals myself and it's completely doable, but I ultimately want my rentals consolidated locally. If you're not planning on using a PM you can save yourself a lot of money managing the property and making repairs yourself. Even if you need to hire a worker, you will be able to meet them in person. You will overpay for work if you have to hire them remotely. I recently coordinated a complete kitchen remodel in WA from KS due to a leaking pipe. It went OK but I would have spent a lot less if I was there in person.

Good luck, it sounds like you have a good plan. I know its tempting to jump in right away and plenty of people invest out of state successfully. But from my personal experience I would start locally and build my portfolio to the point that you need a PM and then invest out of state if you know of a market that has good opportunity.

-CW2 ETSing SEP 2017

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I'm also moving back to AZ next year. I have a condo in Mesa right across the street from the new Cubs Spring Training facility that I'm thinking about turning into a vacation rental.

Had anyone had good success with VR's in the Phoenix area? I'm also looking for buy and holds but it looks like the market is pretty high right now. Any further insight to the current market would be appreciated.

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Phoenix, Arizona

I like them both. not sure what kind of neighborhood it's in but the first one may be to fancy.

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Very nice! Thanks for sharing.

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Originally posted by @Patsy Waldron:

It depends what kind of deals you are looking at doing.... Do you plan to flip, buy and hold, rent to own? Each of these would lead to a slightly different approach. Generally speaking, you can either (1) use your friends/family as the bank, I.e. use their money as a loan to be repaid over a certain period of time at a agreed-upon interest rate, or (2) use them as equity partners, where you split profits/cash flow according to each partner's stake. Each scenario has risks and opportunities for them and you. You need to figure out what you and they are comfortable with.

Buy and hold. I'm looking more into the VRBO market right now. What do you do more of, loans or equity deals?

1 Vote

Originally posted by @Josh Miller:

I use family and friends money all the time and I treat them just like I would any other investor. On Home purchases they get a mortgage that gets recorded and a promissory note. Of course consult with your attorney and closing company but I'll be happy to provide you with a copy of the documents I use if you need an example.

Please do, that would be great. Do you mind giving me a little more detail on how that works?

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Originally posted by @Stone Jin: I'll

We own and manage 4 VR in Chandler. The winter season is almost 100% booked via VRBO/Homeaway. The rest of the year is a mix of Airbnb and VRBO, we no longer advertise on CL as it just didn't yield much results. We are pretty on top of it so our vacancy rate is usually less than 1 month total per year per unit, so a week here and a week there.

VR are significantly more work than unfurnished rental (which we also have). If you are out of state, you will need to find a PM that does VR, they generally charge about 25%. I think VR is one of the few ways you can still make decent returns in the PHX market however just be prepared for the extra work, the unexpected utility bills in the summer (some tenants just leave the AC at 70 all the time, so $300-$400 a month is not unexpected, you can put clauses in that say you will cover only the first $150 but that's hard to do with short term rentals that may not start on billing cycles). The cleaning staff scheduling, the restocking of consumables, the counting of inventory, etc etc.

Best of luck

Stone

I'll be moving back to Scottsdale next September, so I'll be managing local. My strategy has been buy and hold SFH, but recently started looking into the VR's because I think they may give bigger returns. I'm not worried about the extra work involved. Thanks for the feedback.

Ryan

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Thanks everyone for all the great info! It looks like Airdna.co has reports that will provide a lot of info that you can pay for. Has anyone used those? Are they worth it? Competitors pricing is easy enough to find, but occupancy rates and revenue for a specific area is a different story.

I definitely need to look into my HOA..

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I think there's a good opportunity to invest in vacation rentals in my area. I own a condo in Mesa, AZ that I rent out as a SFH. Recently the new Cubs Spring Training Facility was built within walking distance, they rehabbed the park next to it and shopping/dining is very close. I've noticed lots of new properties on Airbnb in the area so I've been considering converting the condo into a VR.

I haven't had much luck researching what kind of income or occupancy rates I can expect.

Please share how you conduct your research for potential VR's.

Anyone in the Phoenix area using Airbnb or any of the other sites, have you had success? Please share your experience.

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All Forum Posts by: Ryan Hilbun

Ryan Hilbun has started 4 posts and replied 33 times.

Post: Being charged 18 times for water - 18 unit building with 1 meter

Post: VA Loan - Use in the Military or wait until I get out? HELP!

Post: Rehab & Flip? Buy & Hold? What are the best REIs in Arizona

Post: Which kitchen design should I chose for this project?

Post: Closed 3 Houses Today!!! $$$$$

Post: How to Structure Deals With Friends/Family

Post: How to Structure Deals With Friends/Family

Post: How do you research vacation rental income in your area?

Post: How do you research vacation rental income in your area?

Post: How do you research vacation rental income in your area?