All Forum Posts by: Ryder Cotton

@Sam Abe

Hey Sam,

I hope you're doing well.

IMO there's a few things that will help in the future:

1.) Of course, better screening.

2.) Include in either the lease agreement or tenant's rules & regulations that there is absolutely no subletting or "guests" staying for more than 5 days.

3.) In CA, if someone needs to move/get out of the property, you have to, by law, within reason, to re-rent the property or accommodate them, 

Example: We had roomates who had a falling out. They needed to move ASAP after 2 months into a year lease. We found a new renter; however, we secured them at $100 below previous tenants rent. We took the difference out of the previous tenants security deposit and everyone was happy. 

4.) Quick question: These people just up & leaving your rental, are they generally college students?

5.) If you're renting to younger people have the OG renters sign a lease agreement. When one moves out, they will notify you. It is up to the remaining roommate to secure a new tenant. Once they find you, you will run a credit check on them and you will have the final say. You can ammend the lease and add them on as a roommate. The security deposit in your acct. will not be touched by you; however, that will be handled between the roomates.

6.) Sorry for rambling. 

Message me if you would like to see the tenants rules and regulation we use.

@Pat Leri Got it. At the end of the day, if you're comfortable with a STR and you're confident it will cash flow, then I would say go for it. Are you going to have a STR manager in place?

Also, why are you steering away from using the money purchase several, smaller units?

I don't have any STR owner/operator/manager experience; however, I am a licensed realtor in CA & TN w/ more than 4 years experience. I've had the pleasure of working on 30+ transactions and I also property managed 45 units before I moved from Cali.

@Jennifer Soltis 

Okay. If you're comfortable and confident that you're able to cover the expenses in the event something happens  then I would say, Go for it. :)  

Do you have your financing in place? 

Hey Anthony,

I hope you're doing well! 

Just my thoughts on the situation:

1.) How much does he need to cover those expenses? Perhaps you can cover the cars and you can finance the rest. 

2.) If it's your first house why don't you try to use a FHA loan? I'm sure he may be willing to wait a little bit so you can get your financing in order.

Let me know your thoughts,

Hey Jennifer!

I hope you're doing well.

IMO: Both properties have great CoCROI; however, if the 6 unit is going completely wipe your reserves, then it may be best to consider the tri-plex. What would really suck is if you had a non-paying tenant on your 6-unit and didn't have the reserves to cover the costs. Then you're in the hole immediately. Bigger reward, but bigger risk. Since the other property is in the city, it should be easier to rent out faster in the event of a vacancy. Either way, I don't know the areas or your risk tolerance. 

Let me know your thoughts,

Hey Pat! 

I hope you're doing well.

It would be hard to offer any advice w/o further info. What city/state are you looking to invest in. If this potential area is cracking down on STR's you may have an issue w/ growth in the future....or....it could make yours even more valuable. Hard to tell at this point.

Why are you choosing STR's vs. other methods?

Talk to you soon! 

Congrats!! 

Hey Amber, 

I hope you're doing well. 

Would this be your first investment purchase? 
IMHO, if you're able to use your cash that's spread elsewhere, I would use that first. As you become more experienced, then I would look into leveraging my personal residence. Maybe it's better to keep your primary residence off the table for a while longer. 

Where are you located? 

Hey Calvin, 

I hope you're doing well. 

I'm a realtor in TN & CA and have some experience w/ 1031's. The place you will probably get the best answers  is from the accommodator that your parents will be using. They will be able to give you all the in's & out's. 

Where are you located? Do you know the accommodator they will be using? 

Hey Joan,

I hope you're doing well.

Have you looked into just doing a refinance into a 30year conventional? Perhaps this will give you the best amount of leverage and maybe you'll get better rates, while cash flowing more.  Unfortunately, I'm not a lender, so those are my thoughts. 

Let me know what you think.