All Forum Posts by: Thomas Hundtoft

@Julie McCoy Thanks.  I meant to post it to the multi family forum.

Hi All,

I am working on my third property and I bit off a big chunk to chew on.  The owner is willing to take on a significant portion of the debt with a second position.  I am having trouble finding a source of financing that will allow the second position.  I have attached the worksheet for your viewing pleasure.  I have read " Low or No money down" twice and seem to have run out of creativity.  The sale price is 1.4M and the owner is willing to take on a second for .4M.  I would be financing the 1.0 for a no money down situation.  Am I smoking something here thinking I could get into a 24 unit deal for little or no money down?  I ran the numbers with a 1.3 purchase price.

https://www.biggerpockets.com/...

I have been hosting on VRBO here in Winter Park, CO (my home away from home in GJ) and have been doing well with the revenues on the condo. I am really liking the renters. For the most part people have been great. Only one pet owner caused me some heartburn with the other condo owners. One positive externality on the condo rental is the refreshing trend of beverages being left behind. A few months ago I left a few choice beverages in the fridge for those arriving at the condo for their ski vacation. I was pleasantly surprised to see that the beverages I left were replaced with more beverages and a note. The note stated: thanks for the great beer and here are a few from our home state. During the many "turns" of the condo this trend has continued as I did not drink the beverages and those have since multiplied after each visitor departs. Not all leave me their favorite selections, but I do enjoy the ones that do. It is a great way to get 5 stars. Does anyone else host and have a good experiences to share? I know that the vacation rentals have exceeded my expectations and I would like to purchase another. With the current rental market the math works for a nice ROI.

Thomas 

@Dale Byram I Calculated with less money down, owner taking a second position for a low money down situation (3.5%), Water/Sewer/Trash in the city runs 59/month(no way around that within city limits).  Here is how I ran the numbers.   One of my goals is to put as little into the deal as possible so there is a better cash on cash return.  Perhaps I am way off and your calculation is much more accurate.  https://www.biggerpockets.com/...

@Dale Byram the 16th street property would be a conservative deal.  A good one for someone starting out.  The math indicates a good couple hundred bucks per month cashflow.  

@Renee Yarbrough the seller is taking on risk when the repairs are needed. I'm not sure you are responsible because you are the customer/buyer. The FHA 203K loan program is available for making repairs after the closing. Of course it will need to be your primary residence for 1 year (Think house hack). The vendors should be paid by the seller if the repairs were made prior to the sale. They will lien the house if they are not paid. My advice is to line up financing as you are shopping for deals. Also listen to the audio book on "no or low money down" by Brandon Turner (although affiliated with BP, it does have a lot of good information).

I have my property in Winter Park, CO that I purchased "furnished".  Many of the vacation rentals here come furnished.  There are always ads on Craigslist and FB market place for furniture.  If you look in the resort areas, you can normally find someone that is liquidating the entire inventory of the condo for extremely low prices.  

@Dale Byram did you take a look at that place.  I was thinking 160 offer and 10K in repairs and you would have a place worth 190 that rents for 1350 or better.  

@Jim Rohman the best deals are off market and you will  need to look in some obscure places to find them.  I have found deals driving around in my travels for work.  One method you could use is to keep an eye on bankruptcy notices and find out through the clerks office who owns their property and call them to see if they are selling.  Also, it is a good idea to get a list from the public utility company to pursue those that have had their power shut off or late.  You can find people that are in need of a quick house sale.  

@Dale Byram Look at a property on 1611 N. 16th street. It is an FSBO and would make a nice college rental. Their listing price is high. It needs about 20K worth of work. An ARV of 195000. I was looking at it and am currently tied up in another deal. Use the BP rental or BRRR calculator to check out the math.