All Forum Posts by: Taylor Burback

 Yes, very fortunate I was able to refi at that time.

Hey fellow real estate enthusiasts,

I'm reaching out to the community here for some guidance and help with creating a comprehensive spreadsheet to analyze the potential of turning my primary residence in Marina Del Rey, CA into a mid-term rental property. Essentially, I'm trying to figure out where the numbers stand today as a Primary and where the numbers could stand as a mid-term rental. I've been trying to crunch the numbers myself, but I'm feeling a bit overwhelmed by the various factors involved. Any assistance or advice you can provide would be immensely appreciated!

Here are the details of my situation:

Property Purchase:

• Condo purchased in Marina Del Rey, CA in 2019 for $1.3 million. 2k sqft, 3bdrm/2ba loft with large outdoor patio. 20ft cielings with industrial/contemporary architecture. Walking distance (or a very short drive) to shopping, restuarants, hospital, grocery store, gym, and pretty much anything else you'd need. 15min to LAX. 10min drive to the beach. 10min drive to Aboott Kinney. neighboring Culver City, Venice, Playa Vista, and Santa Monica.
• I put 10% down and secured a 30-year fixed-rate mortgage at 3.875%.
• A second loan (10/1 ARM) of 10% or $130,000 was taken at a 6.24% interest rate to avoid PMI.
• Estimated funds to close, including closing costs, amounted to $1,320,000.
• Loan amount: $1,040,000. 10/1 ARM: $130,000. Cash from borrower: $150,000.

Refinancing:

• In July 2021, I refinanced both loans into a single 30-year fixed loan at 3.125%.
• The property appraised at $1.35 million.
• Closing costs were $40,000, and my cash to close was $3,500.
• Closing costs were added to the loan, resulting in a total loan amount of $1,188,000.

Rental Details:

• Planning to rent out the condo as a fully furnished mid-term rental (30-day stays or longer).
• Comparable properties in my building are renting long-term for $8,500 per month. I'm seeing comparable mid-term fully-furnished rentals on Airbnb renting for ~$10k-$12k.
• Additional monthly expenses: HOA: $640, Insurance: $175, Property Taxes: $1,300, Principal & Interest: $5,100.
• Property management will be done by myself, and tenants will cover utilities.
• Estimating a vacancy rate of around 15-20% for mid-term rentals, though I'm unfamiliar with this type of vacancy rate. I am also open to long-term renting the property if the mid-term AirBnB route is not working.
• Property appreciation rate has been around 6% annually for the past decade.
• Planning to increase rent by around 5-8% annually.

I've tried using tools like DealCheck, the BP calculator, and creating my own spreadsheets, but I'm finding it increasingly confusing to put all these variables together. If anyone has experience in running this kind of analysis or has a template that could help me out, I would be extremely grateful. *Also, please let me know if I'm leaving out any information that would be helpful.

If you're willing to assist, I'm even open to compensating for your time to help me run the analysis. Please feel free to DM me if you're interested.

Thank you all so much in advance for your support and expertise. This community is truly amazing, and I'm excited to learn from your experiences and insights.

Cheers!

Thanks for the feedback! I'm certainly going to look into the cost segregation study and insurance placement options.

Best,

Taylor

 Hi Bonnie,

Thanks for the kind words! You nailed it, very glad I refi'd when I did.

The target market for this property is focused on high-income individuals and families who work in the Silicon Beach area, particularly at major tech companies such as Google, Facebook, Snap, Apple, Time Warner, Tencent, and others. This includes professionals in sales, engineering, product development, and similar roles within those companies. Additionally, the proximity of the property to the state-of-the-art Cedars Sinai facility makes it attractive to high-income doctors and other healthcare professionals.

My ideal demographic consists of individuals or families who require a conveniently located place to stay within a 10-15 minute drive to their workplace and the LAX airport. They are seeking a mid-term, fully furnished, turnkey property that offers higher-end amenities and attention to detail, catering to their accustomed lifestyle. The availability of a backyard is also a rare and desirable feature, particularly for those with large dogs or other pets, as well as families with children.

By targeting this specific customer segment, I aim to attract high-net-worth individuals and dual high-income earners who value convenience, luxury, and spacious accommodations that meet their needs while being close to their workplace, centrally located to Playa Vista, Playa del Rey, Venice, Culver City, and Santa Monica (and the beach!).

Full disclosure, I am totally new to the real estate investing, mid/long term rental game. I listen to BP podcast daily and I'm trying to educate myself as much as possible to inevitably fully commit to real estate in the long term (via different strategies including: BRRRR, short/mid-term rentals, flipping, etc) with the end goal of replacing my current W-2 job in tech sales. Any advice is beyond appreciated :)

Best,

Taylor

Investment Info:

Condo buy & hold investment.

Purchase price: $1,300,000
Cash invested: $143,000

I acquired a stunning 2,000sqft 2bd/2ba condo with 17ft ceilings in Marina deI Rey by investing $143,000 (down payment and closing costs) for the property, securing a favorable 3.1% interest rate. Upgrading the condo with modern features and amenities, I've transformed it into an exceptional living space.

My goal is to tap into the thriving mid-term rental market in Marina del Rey. Offering fully furnished accommodations, I anticipate rental rates between $8,000 and $10,000 per month, presenting an attractive income potential.

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

First and foremost, I recognized that Marina del Rey offers excellent potential for growth and value appreciation. While neighboring neighborhoods like Venice, Santa Monica, and Playa Vista have experienced significant price increases, Marina del Rey has remained relatively undervalued. This presented an opportunity to invest.

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

Zillow.

How did you finance this deal?

I initially purchased the Marina del Rey condo with a 10% down payment on a 4% Jumbo loan, supplemented with a $130,000 7/1 ARM to avoid PMI. However, during COVID, I took advantage of low interest rates and refinanced to a 30-year fixed mortgage at 3.1%. This allowed me to meet the 20% down payment requirement, remove the ARM, and secure long-term stability while maximizing equity.

How did you add value to the deal?

Remolded the bathroom, kitchen, and landscaping, and I intend to convert the dining room into a 3rd bedroom.

Investment Info:

Condo buy & hold investment.

Purchase price: $1,300,000
Cash invested: $143,000

I am an enthusiastic real estate investor who acquired a remarkable condominium in the highly sought-after Marina del Rey Arts District in November 2019. With a purchase price of $1.3 million, I invested $143,000, covering both the down payment and closing costs associated with the property. Securing an advantageous 3.1% interest rate, I have taken advantage of favorable market conditions.

Since purchasing the property, I have dedicated myself to enhancing its appeal and functionality. With a keen eye for design and meticulous attention to detail, I have upgraded the condo to create an exceptional living space. The property now boasts modern features and amenities, showcasing my commitment to providing a high-quality residential experience.

At present, this exquisite condo serves as my primary residence, allowing me to personally appreciate the comfort and elegance it offers. However, my long-term goal is to leverage the thriving market for mid-term rentals in Marina del Rey. Recognizing the demand for fully furnished, upscale accommodations, I aim to transform this property into a sought-after mid-term rental opportunity. With rental rates anticipated to range between $8,000 and $10,000 per month, this investment holds significant potential for attractive rental income.

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

First and foremost, I recognized that Marina del Rey offers excellent potential for growth and value appreciation. While neighboring neighborhoods like Venice, Santa Monica, and Playa Vista have experienced significant price increases, Marina del Rey has remained relatively undervalued. This presented an opportunity to invest.

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

Zillow.

How did you finance this deal?

I initially purchased the Marina del Rey condo with a 10% down payment on a 4% Jumbo loan, supplemented with a $130,000 7/1 ARM to avoid PMI. However, during COVID, I took advantage of low interest rates and refinanced to a 30-year fixed mortgage at 3.1%. This allowed me to meet the 20% down payment requirement, remove the ARM, and secure long-term stability while maximizing equity.

How did you add value to the deal?

Remolded the bathroom, kitchen, and landscaping, and I intend to convert the dining room into a 3rd bedroom.

Investment Info:

Condo buy & hold investment.

Purchase price: $1,300,000
Cash invested: $143,000

I am an enthusiastic real estate investor who acquired a remarkable condominium in the highly sought-after Marina del Rey Arts District in November 2019. With a purchase price of $1.3 million, I invested $143,000, covering both the down payment and closing costs associated with the property. Securing an advantageous 3.1% interest rate, I have taken advantage of favorable market conditions.

Since purchasing the property, I have dedicated myself to enhancing its appeal and functionality. With a keen eye for design and meticulous attention to detail, I have upgraded the condo to create an exceptional living space. The property now boasts modern features and amenities, showcasing my commitment to providing a high-quality residential experience.

At present, this exquisite condo serves as my primary residence, allowing me to personally appreciate the comfort and elegance it offers. However, my long-term goal is to leverage the thriving market for mid-term rentals in Marina del Rey. Recognizing the demand for fully furnished, upscale accommodations, I aim to transform this property into a sought-after mid-term rental opportunity. With rental rates anticipated to range between $8,000 and $10,000 per month, this investment holds significant potential for attractive rental income.

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

I was drawn to investing in this particular deal for several reasons, and the unique advantages of the Marina del Rey area played a significant role in my decision.

First and foremost, I recognized that Marina del Rey offers excellent potential for growth and value appreciation. While neighboring neighborhoods like Venice, Santa Monica, and Playa Vista have experienced significant price increases, Marina del Rey has remained relatively undervalued. This presented an opportunity to invest in a d

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

Zillow.

How did you finance this deal?

I initially purchased the Marina del Rey condo with a 10% down payment on a 4% Jumbo loan, supplemented with a $130,000 7/1 ARM to avoid PMI. However, during COVID, I took advantage of low interest rates and refinanced to a 30-year fixed mortgage at 3.1%. This allowed me to meet the 20% down payment requirement, remove the ARM, and secure long-term stability while maximizing equity.

How did you add value to the deal?

Remolded the bathroom, kitchen, and landscaping, and I intend to convert the dining room into a 3rd bedroom.