All Forum Posts by: Teri Feeney Styers

Probably not tons different than people who have converted motels... you might try to find threads and info on that. 

Rather than a conversation with my buyer, how about you look at the program he leases to? https://www.newlyfree.com/

I'll jump in - I have assisted a buyer several times who bought houses specifically for this purpose. In his case, the ultimate tenants were felons transitioning back into society. The "program" was the tenant and they rotate the occupants in and out. Tons of good oversite and security and my buyer is very happy with the arrangement as are the occupants. My buyer gets higher rents and the occupants each pay about $600-$700 per month for a bedroom & utilities. They are grateful to have a clean space at an affordable price. Felons have difficulty passing background checks. This organization also helps them with jobs which is another big hurdle. The houses are located near public transportation too - most of the occupants don't have cars. 

Write two documents with the tenant who wants to purchase. The first is a lease with a monthly rent of $5500 or more (which is what the other people offered you). This lets them get into the building and start creating a financial track record. The second document is a purchase contract. Make the closing date work for both obtaining an SBA loan AND meeting 1031 guidelines. This will give you monthly income now, time to watch the local market and loosly identify a replacement property if that is your goal. Possible downsides? The tenant doesn't get their SBA loan and they just stay your tenant - you have a lease in place. The other possible downside is that the purchase transaction takes place and you are unable to find an appropriate replacement in time. In which case you pay the tax you were willing to pay today. 

No sales pitches – just coffee, soft drinks, some homemade goodies and fun “round table” real estate talk. Everyone gets a chance to introduce themselves. We've been hosting these events for a number of years and the format is super friendly to both newbies and experienced investors. Please try to let us know that you are coming so that I set up enough tables and chairs. Come at 10am so you don't miss any of the conversation. [email protected]

@Jossalyn Wallace so you are looking for short term rental as opposed to long term? What does "use it" mean to you and what do you want to do while here? 

@Jossalyn Wallace what the others have failed to point out is that there is a whole other 3/4 of the state of Colorado that isn't the Front Range corridor... you need to look on the west side of the Rockies or the plains where there are small towns that also need decent rentals and have cheaper real estate. 

@Soren Loftus to use some Dave Ramsey lingo: you have dug a big hole; but you have a big shovel (income) and with the proper discipline you'll get where you want to be. As a woman who raised 4 children I am going to challenge you on the premise that in order to homeschool the children your ex-wife needs to be a stay at home mom. She needs to look at contributing to her own upkeep. If she can get out of the house it will probably help her sanity as well. If not, perhaps combining the schooling with some paid childcare or something. Or maybe she can figure out an option to use that $360/mo car and make it pay for itself... 

@Matt Ten I have done some simple lot splits in the past (like half acre parcels that I cut in half). I have also done some new construction projects. This acreage had several water taps and a sewer tap in place and paid for from an old trailer that had been removed. I bought the land with the idea that I would divide it up somehow and probably sell off some and build a house or two. The area was already zoned for residential with fairly high density (8 units per acre and I had 3.25 acres). The county planning dept. is encouraging infill and has requirements when you split that you try to meet this density. I also discovered that before the 2008 bust someone else had started a development process on this parcel and there were some old drawings. That inspired me to go ahead and create a true subdivision; and I verified with a developer I knew that my numbers would be appealing. So with guidance from the planning dept and all sorts of professionals I worked my way through the process. I am super comfortable with "paperwork", rehabbing, and new construction - but building streets and sewer systems is not in my comfort zone financially or otherwise. Hubby and I are in our late 60s and being a million dollars in debt - even temporarily - is not appealing. So I pretty much always had the plan to flip it. When I sell next month I will have spent about $180,000 altogether including my original acquisition cost. I am selling for $325,000. That's about $20k per building lot which allows the developer to still have an affordable product after he does his work. Buying "paper lots" is appealing to a developer because they don't have any money tied up until they are ready to bring in the bulldozers - I have eliminated those carrying costs for them. They are off building somewhere else while I go through the long process on my nickel. Yes, I would do it again. 

@V.G Jason The "no further repairs or discounts" would be used in a case where you are trying to be more competitive with multiple offers or trying to obtain a lower purchase price.