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A house/property just became available across the street from my house. I have been contemplating getting into properties. For those who look for and purchase properties what are the main factors you look for?
This home is on almost 3 acres, 2 br and 1 bath...got renovated in 2019. Asking price is around 225k. I am thinking for Airbnb purposes. Again it is right across the street.
A house/property just became available across the street from my house. I have been contemplating getting into properties. For those who look for and purchase properties what are the main factors you look for?
This home is on almost 3 acres, 2 br and 1 bath...got renovated in 2019. Asking price is around 225k. I am thinking for Airbnb purposes. Again it is right across the street.
Before you start looking at properties, you need to decide if you want to be a landlord. If you do it yourself, how are you going to handle the 2AM phone calls from the tenants, where the toilet has overflowed, etc ? If you hire a property management company, that will eat into any profits.
For AirBNB and similar, you need to confirm the property can be rented out on a short term basis (HOA restrictions, etc). You also need to have someone to clean, maintain, etc.
Don't forget to account for down times, where the property is not rented, due to maintenance, time of year, etc.
You don't have much time to decide about being a landlord. If lots are 3 acres it's unlikely another house so close will come available.
Go ahead and write a contract with an inspection clause. Then take time to decide if you want to go short or long term. Do you have the option to rent furniture and try the air bnb for the summer? You'll find out soon enough if it suits you.
Long term rental doesn't have to be miserable if you screen tenants well. Not saying you won't ever get that midnight call but they will be rare.
There doesn't seem to be value-added by the investor. And there doesn't seem to be a distressed price available to the investor.
Well, the current mortgage rates can be mitigated with large down payments simply by those with capital. But have property values yet bottomed relative to upcoming recession ?
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Thank you everyone. I do consider myself a strong negotiator but have a question... assessment is in the 80s, it was sold in 2019 at 80k...does say lots of upgrades since bought. What would you throw as an offer?
Real estate diplomacy involves making an offer as low as 3% to 5% below the asking price. Then wait several weeks to see if the offer is accepted.
If an asking price needs to be pounded-down drastically to reality then the situation is just avoided. The seller shouldn't be insulted but instead be given time to understand the market for themselves.
Also, a renovation just brings a property up to theoretical value
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Location: In a city within a state where politicians come to get their PHDs in Corruption
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Quote:
Originally Posted by E.Beef
A house/property just became available across the street from my house. I have been contemplating getting into properties. For those who look for and purchase properties what are the main factors you look for?
This home is on almost 3 acres, 2 br and 1 bath...got renovated in 2019. Asking price is around 225k. I am thinking for Airbnb purposes. Again it is right across the street.
My advice; don't. You're not asking the right questions, your intended use is in a johnny come lately frothy market--airbnb. Short term rentals are not for newbies.
Thank you everyone. I do consider myself a strong negotiator but have a question... assessment is in the 80s, it was sold in 2019 at 80k...does say lots of upgrades since bought. What would you throw as an offer?
Have you estimated how well it could cash flow? I feel like you haven't really run the numbers. The question shouldn't be how much should you offer, it should be how much income could you expect it to generate. That income needs to cover the mortgage, taxes, insurance, and still leave a cushion for unexpected repairs.
With that being said, you should be analyzing local AirBnB rates and estimate the vacancy rate for the year. Once you estimate your expected monthly income you can then determine your maximum bid amount.
Some pieces of advice for you:
1) Short term rentals like AirBnB can be extremely lucrative if you're in the right area. However, they are significantly more work than a traditional rental property. They will also always generate more wear and tear on a property than a longer term renter.
2) Consider long term rental income expectations as well. That way if AirBnB fails you can fallback on a long term renter. It also is a good option if you can't quite keep up with the turnover short term rentals have.
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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$225k sales price investment RE must yield $2,250/ Month income
I use 1% capital return / Month (net if possible)
$225k sales price investment RE must yield $2,250/ Month income. Neighbor gal gets $500/weekend VRBO for a remodeled horse stable/ turned 'couples retreat'. ~$12k renovation. Been booked solid for 3.5 yrs. But I could never do the revolving door of ST rentals, I like to be GONE.
Get an appraisal. Only buy what is actual and pencils and is easy to sell tomorrow (for more than you paid). I always make my money at the time of purchase (buy right, or don't buy).
Be realistic on rents / income. We know nothing about your location or property, but you MUST know everything!
$80k >$225k increase in resale value needs to be examined and validated.
I've rented very complex props for over 50yrs, I've never been called at 2am, never have cleaned or unplugged a toilet, I don't use a management company. I travel 50% of the time, often overseas. I have properties in a few states. So far so good
I plan 12% annual returns + appreciation (usually 10% in my regions)
I prefer commercial RE, or speculation on rural view lots. For renters, I prefer mature adults. Military retirees seem to be responsible and self sufficient. No pets, kids, or parties.you're late with rents?, You're GONE. No second chances. Mess up once and you're toast. most of my tenants stay 7-10 yrs.
Currently selling my rentals and carrying back the paper. Similar income, no more appreciation, no more deductions, no more hassles or responsibilities. Properties all paid for themselves through rents, sometimes many times over. Huge demand to sell nice rural view properties on acreage, with owner financing. Suits me for this season of early retirement. (Been without a J-o-b for 18 years (no pension) and haven't needed to touch retirement funds, yet.)
RE makes up about 30% of my assets and gained wealth. Just one of the many tools that might work in your toolbox. Everyone is different. (Good thing)
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$225k sales price investment RE must yield $2,250/ Month income
