All Forum Posts by: Matthew Masoud

 This is what I opted for.

Raised rents to $750 and got approved for a credit card with a limit of $28k (15 months no interest) which could do 2-3 units, so if anyone leaves from the rents going up I can do the repairs.

Win-Win. 

For context, I'm spending $8k-$9k in unit turns and $2k-$3k in furnishing per unit

Yes, we purchased the properties 70% LTV financing

The property was purchased at $1.16m to be exact. $348k down. 

Cleveland like many cities in Ohio has some ROUGH areas.

Be sure not to accidentally purchase in a D-class area 

I made that mistake when I purchased my first property from California and also in Ohio (Dayton).

Be sure you are watching your DSCR closely.

Many people got into BRRRs thinking they can refi but with interest rates increasing, DSCR is usually the bottleneck on how much you'll be able to pull out.

Most lenders hover around a 1.25 but some go as low as 1.0. 

So I purchased a deal off market on a 20-unit multi-family property.

Rents were $500-$600/unit whereas I rent them out Mid-Term for around $2,000/unit (market long term $900)

I only had the funds to close + turn/furnish 5 out of the 20 units (plus do lots of external repairs). I turned and furnished 5 units and got them rented at $2,000-$2,300, plus did most of the external building repairs (roofs, gutters, landscaping, ect)

Now I have 5 units at $2,000+ and 15 units at $550-$600. It's pretty frustrating trying to use cashflow to fix/furnish the remaining units.

I know I bit off more than I can chew but the deal was too good to pass up.

I've considered raising the rents on existing tenants but I'm concerned they leave and now I have a vacant unit that needs turns and furnishing without the funds to turn it.

How can I get the funds to finish stabilizing the property? Is this something a hard money lender would lend on? If so would I have to refi to pay back when the balloon payment is due?

I'd prefer not to but can I bring on additional investors to complete the renovation? But at what valuation? I've already done some stabilizing so the property is already worth more.

Interest rates are too high to refi one of my other properties that have equity.

For context, I purchased the property at $1.2m, total renovation costs are $200k (of which I spent $50k already) stabilized value is about $2m.

The property is currently cash-flowing decently but I'm saving all the cash-flow to turn the other units.

Thoughts?

I'd get on Furnish Finder and see what others in the area are charging for similar properties.

From my experience renting by the room does not tend to work well for traveling nurses unless the room has a private restroom.

Your best bet is either renting long-term or building a relationship with insurance companies to house claims.

It'll take time and quite a bit of calls but insurance claims are quite rewarding reservations

 Well, to clarify $400/door is after I hire and pay a property manager full-time.

Do you manage your own LTR?

Hard to give advice without more details.

I would play with pricing and start reaching out to people through the "unmatched house requests" and "General Housing Request" options under "tenant leads". 

Either you're overpriced or demand is just not there.

I'm guessing the former with it being Temecula, CA. Could be wrong.

Sorry you're going through this.

Few things popped into my head while reading this.

1. is this an older property? If it's an 80-year-old property I wouldn't be surprised at the excessive repairs.

2. I would create more clear boundaries with the property management company. Any repairs over $x need to be approved by me. Once you spend more than $xxx per year on repairs, all repairs need to be approved by me, etc.

3. I would ask for more details of the repair history. What was fixed, how much did I pay for this repair, and why is the same item being repaired multiple times?

If they know you're looking carefully, they're less likely to engage in funny business.

I'm not sure why you would agree to lock yourself in with them for so long but if things don't turn around you may want to speak with an attorney about how to get it out of the contract, if at all possible

The need for a Mid-Term rental lease is that in most areas a guest receives "tenant rights" if they rent a place out for 30 days or more.

In most areas, this is what it looks like.

- If someone overstays their welcome for a stay less than 30 days you can call the authorities and they will remove them for trespassing.

- If someone overstays their welcome for a stay over 30 days you will have to go through the eviction process.

Therefore you'll need a lease for stays over 30 days.

You'll want to make sure it does not include month-to-month language. Have a clear start and end date.

You'll want to make sure it includes furniture and reimbursement for damaged furniture.

You'll want to make sure you have language about guests, noise levels, park ect. Many of which is already found in traditional rental agreements.