All Forum Posts by: Travis Moe

Big thanks to

• @Corey Clarkston for help with acquisition analysis, rehab estimates, etc
• @Alexander Felice for inspiration on out-of-state investing - "Suck it up, buttercup!"
• @David Greene for his book on Long Distance investing. Many, many, thanks. 

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Jacksonville.

Purchase price: $175,000
Cash invested: $38,000

Contributors:
Corey Clarkston

2/1 Bungalow with a 1/1 apt over the detached 2-car garage. Separately metered and addressed. Picked it up by submitting a 3-option counteroffer to the seller. Ended up with seller financing with 20% down, interest only until refi. This allows the property to cash flow even though the rents are sub-market.

When leases expire, the plan is to rehab both units. The 2/1 will remain a LTR. I plan to pivot the 1/1 apt to a STR. This should bump cash flow up nicely.

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

I like small multifamily as a gateway to growing into mid-size multifamily. I also needed to look beyond SoCal where I live since cashflow is very hard to come by here.

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

I found the deal and brought in my agent and my property manager to help vet it. Negotiations were handled by my agent (Danay Guenther-Root Realty). It went back and forth a few times. We got locked up on price and I was about to bail, but I thought I'd offer the seller a 3-option counter. I told the seller I could either get my preferred price and take the place as-is, come up to his price and he delivers place vacant, or meet in middle with seller financing. He chose #3.

How did you finance this deal?

Seller finance. 20% down. 6.5% interest only until refi.

How did you add value to the deal?

Will be replacing roof and some plumbing. Cosmetic updates once the leases expire.

What was the outcome?

So far, so good. Tenants are onboarded. Have my estimates for repairs. Just following the plan.

Lessons learned? Challenges?

Closed on 12/26. Day after a major holiday and just a few days before another one (New Years). I'll never do that again! Finding notaries, sending wires, talking to title attorneys on vacation, all with holiday travel and stress.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Danay Guenther - Agent, Root Realty, Jacksonville, FL
Corey Clarkston - Property Manager, Saint Johns Properties, Jacksonville, FL (he's also a BP member)

Be certain to do all your homework about the Desert (Palm Springs) area. The different cities all have different regulations on short term rentals. Palm Springs proper made them illegal. Palm Desert stopped issuing new permits and will sunset all existing permits on non-owner occupied rentals in 2019. Rancho Mirage has restrictions. Virtually ever HOA and condo association has tight rules about short term rentals.

La Quinta and Indio don't currently have blanket exclusions as far as I know. But, as will all things political, that could change at any moment.

Fellow Desert Dwellers - 

I'd be interested in attending this on a regular basis. Anyone else want to get this going again?

@Patrick Fraire

For RVCO....

@John D.

If you zoom in it will reveal more granular data. So if you look at the map and use the umbrella zoning color codes to know at a glance if something is residential, commercial, etc and then begin to zoom in, then you'll eventually be able to view specifics like R-1, R-2, CEIR, etc. 

Then, if you click on an actual parcel, you'll get a mini-report with additional zoning detail (if applicable). 

I sent tech support at PropertyShark an inquiry about overlaying that map data onto the MLS search page (or vice versa). I'll let you know what they say.

@Panayot (P.T.) Tomov

Always!

Buying and holding in what part of the Palm Springs area?

@Jessica Ruiz Lee

You could reach out to @Tyler Hungerford. He knows the Big Bear Lake and Big Bear City areas and is experience with STRs. 

@Walid Ajmal

[email protected]

Thanks

Property Shark maybe?

With a maps subscription you can search an area, choose a zoning map, and even overlay Opportunity Zones. 

Screen shot below has La Quinta, centered on Point Happy area. The "A" icon is showing a single address searched. Zoning map and Opp. Zone overlay were then selected. Property Shark has MLS data available with a subscription so you don't have to search address by address.

Try contacting them and seeing if they can get you what you need.