All Forum Posts by: Rudy Planter

Understood. Wow. You were going big! What strategy are you  running currently?

Thank you and thanks for the direction. I have come across a couple potential properties with 30 day minimal stay rules.  Just could not see how to make that work as a prime residence.

I have started considering buying land and standing up tiny homes for str. I imagine same type of rules could apply in addition to ensuring zoning allows that type of structure. 

 Thanks again!

Thanks @Michael Baum, I've really come to enjoy the area and see some potential if the ordinances are in favor. Where did you visit while here? Did you use an air bnb or more traditional rental?

Anyone here currently using an an STR strategy in the New Hampshire lakes region? Recently (under a year) relocated to the area and after a long search including 30+ houses/multiple offers set to close on primary in a few weeks. With that said, really got interested in short term rentals for future vacations and as a foundational investment strategy for other RE investing.

My biggest concern is getting a handle in ordinances. Is there a good general source to go to across the board for a town/city?

FYI - https://www.nhhfa.org/emergency-rental-assistance

@Filip Reutov the universe has a way with timing.....I just finished Mike Butler's "Landlording On AutoPilot" this morning and I felt like i could hear him scream "No" lol. All kidding aside, any perceived benefit holds no value if something goes wrong, including what others have commented. Perhaps look at it this way:

If you were going to build said shed what steps would you need to take - Permitting, materials selection, time, updating your insurance policy?, possible survey, etc. Now assuming you'd allow the tenant to construct this shed, which is the same as going into an agreement with a contractor with appropriate skill do you expect/know if the tenant has similar skill, licensing and insurance?

Now let's say the tenant is in fact licensed and insured. Are you prepared to give him the job as a contractor and not as a tenant doing you a favor - proper quote, expectations, etc? If no, then you're risking losing a tenant and incurring unnecessary expenses. If yes, there exists an element of managing him/the job which could get tricky especially if he thinks he's doing you a favor in the long run.

Continuing the "favor" angle, do you think you'd be able to charge the tenant(s) for the additional storage, similar to garage access, basement storage, etc.?

 Any luck? Brandon demos the various calculators in some of the archived webinars and short videos. 

One last thing....without knowing the "nature" of the tenant or reason for nonpay, a total rehab of at least that unit as a worst case also should be considered when/if an eviction happens.

Side note: How does the seller's books look for this property?

@Dhondup Chime

Full disclosure: I have bought/sold one live in flip. Currently pre-approved for much less than what you present here.

Relative to this deal as objectively as perhaps possible:

1. Have you run multiple analysis on this deal considering worst to best case considering at a minimum all of the allowances that i.e. are baked into the BP calculators or some comparable tool? (put aside the tenant non-payment issue.) If no, I'd recommend doing so to see the range of return and risk exposure you could expect. If yes, then consider the cost of the non-paying tenant. Some may consider this just the same as a vacancy. Personally I'd keep it separate because you literally can't put a paying tenant in the unit.

2. Now considering all of the scenarios from analysis, does acquisition still look like a deal if another tenant decides to halt payment and either refuse to leave/abruptly vacate? Is there any deferred maintenance you would need to do impacting putting another tenant in asap? Could you increase rent on the unit turnover to cover a portion of the non-paying tenant?

3. How much reserved capital do you have to cover (theoretically pay the rent) the opportunity cost of holding the property while floating the non-paying tenant? In other words, how long are you prepared to bleed your reserves for this tenant to make the mortgage?

4. I know NJ is not exactly cheap but can you assume less upfront risk by deploying that down payment on another deal? Even if you still want to take down a larger deal, is partnering and sharing risk a posdible strategy?

I know - wordy but given the details you may want to pause and maybe run this by another local investor or two for a sanity check before pulling the trigger. Best of luck!

@Lawrence Fu welcome to the club! What's driving you (your team) to settle on EOQ1 as a target for your first deal?