All Forum Posts by: Will Pritchett

Can't wait!! See you all there!

@Sarah Groth appreciation is hard to predict. We always sought cash flow and then appreciation changed our lives for the better. Andrew has a good point about income tax and property tax. Our property taxes are terrible and can kill deals in a hurry! That's the only bad thing about investing here though. 

@Kevin Cullen LA Heights is good but most houses are very old. Depends on your strategy. For rentals, I prefer newer than 1950 and newer than 1980 when I can find them. Just my two cents. Lots of people are successful in LA Heights though.

Thanks @JD Kumala! Yes, that's a great little duplex that has definitely added value to our portfolio. Keep 'em coming!! 

Welcome Brian,

We have been doing the BRRRR thing for quite a while but we are leaving more cash in deals as of late. Interest rates being the biggest change. We do love this market though. @Andrew

@Andrew Postell is my conventional lender of choice - who posted above. He has helped me see how to best use conventional lending in the investor space. He is an investor so he gets us! 

I am curious where pure BRRRR deals are working these days. We got a little spoiled over the last few years. Prices have softened a bit but not enough to compensate for rate increases yet. We have also done "slow BRRRRs" like the one we're doing now where we are leaving money in it but one day in the future will pull it out when we can still make cash flow. I try to remember that money left in a property isn't gone like spent cash on groceries, it's just moved into a property that we still own. That takes the sting away a bit!

Best of luck to you. You came to there right place!

I actually passed on the deal due to it being all in a flood plain. I wish I could help. We've continued with long term rentals for now.

Good luck,

Will

@Corey Hawkinson Thank you so much for your reply. Very helpful. I'd love to see those listings if you don't mind.. Much appreciated.

@Paul Sandhu these cabins are too small for kitchenettes without sacrificing beds. There is on-site laundry but not for each individual unit. Would these disqualify from Air BnB?

@Luke Carl thank you. I was thinking the platforms for bookings and some marketing if no one is physically present to check people in.

That quote is hilarious, by the way!

I am a long-term rental investor considering a group of about ten cabins that are being run as a motel. Are there any limits on the listing platforms regarding what type of property can be listed? This place seems too small for on-site staff but I've never stayed in a place set up like this that was listed on Air BnB, VRBO, etc. They also don't have kitchens which is uncommon for BnBs that I've seen. I don't know if motel type properties are disallowed as they are somewhat the competition for the STR model. It is currently run by a resident owner/manager that lives on site. Switching models seems like it could bring efficiencies into play and increase cash flow through automation.

I appreciate any and all feedback.

@Daniel Moscoso

You already have great feedback here. Did you use their hard money company too? I’m just curious as I’ve seen a few stories like yours lately.

Also, at your price do you still stand to make a profit? Can you slash the price and break even and chalk it up to “tuition”?

While the outcome may not be what you planned, you took action. Don’t let one deal deter you. Lots of people will talk about real estate but never get started.

Good luck.