All Forum Posts by: Travis Sperr

I do the following for all pest control – in a single family house I let the tenant take care of it. In a multifamily I take care of it. Not sure what Bloomberg would say in your area, but the people upstairs are going to be calling your friend pretty soon about bed bugs they didn't bring in.

@Katrina P. I think you are losing sleep over this, considering you spent the time to find out when it was manufactured. If it is a good tenant that you want to take care of just replace it and everyone is happy. You could send a repair person out to take a look, but at that age it probably isn't worth it.

I always buy used appliances for my rentals from a place that warranties it for a year and has a in house repair team.

Welcome @Jason B. Sounds like you are getting after it. I am in the area so if I can be a resource let me know.

@Biko Mulah It is all about the numbers. If there is room in the deal to convert back to a garage, that seems like the easy answer. If you need the additional square footage to make the deal work, i would spend ample time getting hard bids to see what it would take and if the city would permit it.

Without knowing your market very well, it is hard to say if what you are asking is too much for the seller to fix, but price fixes everything.

I have to agree with the messages above. If finding investment properties isn't her forte, why not find someone who focuses on it. Investment deals are much different than historic and likely different than what you explained as expensive homes. Furthermore knowing rents, cost of money, minimum profits, how to work with appraisers on flip houses, etc. is a lot of work.

Try this - find an agent that is investor focused and always have that friend to ask questions to, maybe related to contracts, comps, finishes etc.

It sounds like you might be wanting to work with her because it is convenient, get out there and find someone you wont feel bad about firing.

@Nick G.

$50 a foot sounds a long way off, even national builders who's whole business is volume are around $85 a ft.

In some places even if the land is free it has no value because of the cost of construction. You can always try to sell the lot, at $2,500 your exposure is limited - but could be tasked with demoing the house, asbestos, etc.

Sure, they could, but without a strong relationship or a deposit in hand it may not be the best business practice. I have had wholesalers call me with a deal in a neighborhood they know I buy in, I typically need to give an answer in a couple of hours before they open it up to other buyers

@Nick G.

This deal is not strong enough based on the information provided. I do not see that you accounted for cost of capital, although you might be paying cash.

In my area you would be at about $115 +/- a foot to build if you hired it out, if you GC'd the project (not recommended if this is your 1st go) you might get closer to $100 a ft. You can quickly see that it costs you more to build than it is worth.

Finally to the profit question - minimum 20% net profit on the final product. New construction projects are a different animal and need to be rewarded as such. I think you will find it is difficult to be profitable on new construction with a sales price of less than $200k+.

Welcome @Account Closed we do a lot of lending in the Cities. If I can help you with anything let me know.

Everyone has a different comfort level and profit expectation. If this is your first deal, I wouldn't recommend it, if you have a sizable portfolio or more money then you know what to do with you might consider it. The property management on short term rentals can be as high as 30%, there is more work involved with collecting payments, finding tenants, keeping the place and contents in good shape, utilities, cable, etc. The expenses go on - that doesn't mean that you can't make it work, it just means the numbers need to be very strong.

I know of a few investors in my area that have mountain rentals, most of them use it themselves and rent out for some income to offset expenses but not as a true income property.