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Author Topic: My first deal  (Read 48856 times)

Offline andydallas

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Re: My first deal
« Reply #15 on: February 21, 2011, 01:53:52 pm »
Justin, I'm glad to know I'm not the only person with  a perfectly good paint sprayer sitting around collecting dust,,every time I start to use it I figure its too big a mess,,,,,so it is still collecting dust,,I'm sure the first time I use it I will use it more

andy

Offline furnishedowner

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Re: My first deal
« Reply #16 on: February 21, 2011, 07:33:31 pm »
WTSinvestor,

That $70/day per diem is now up to $77/day, I believe that is a national rate adjusted every October.  Ours went up then.

THAT'S $2310/MONTH for a furnished place.  Two thousand three hundred dollars beats $600-$800 rent unfurnished. 

With your knowledge of what military guys like you could really make money on those 30 or 60 day stays.  Just give them the contractual right to move anytime, and require a minimal 30 day stay or you must pay gross receipts and lodging tax.

You need a big flat screen TV and a recliner in the living room.  BBQ in the yard.  A manly, neutral decor.

Wow, if it were me, and with regular military guys in hotels, I would so pursue them as tenants.  But that's what I do for a living.

You can pay off your mortgage much faster and have higher quality tenants if you go the furnished route. 

If that cow is in your barn--why not milk it!

Furnishedowner

Offline justin0419

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Re: My first deal
« Reply #17 on: February 21, 2011, 09:12:21 pm »
Furnished,
Here's a link to the per diem calculator.  $77 is the standard daily amount, but certain places around the country can be more.
http://www.defensetravel.dod.mil/site/perdiemCalc.cfm

Andy,
Yeah, the paint sprayer doesn't get as much use as I originally thought.  When I worked construction back in between a couple college years, we were building new construction homes so we used a sprayer to finish out the inside in about 1.5-2 hours.  It's much different when I'm trying to mask off an entire room in a house now so I guess I'll just use the sprayer on exteriors. 
If you like rock music, check out www.Lynamsucks.com
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Offline WTSinvestor

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Re: My first deal
« Reply #18 on: February 22, 2011, 12:49:48 am »
Furnished,

Your correct, its now 77 in Jeff county.  But they include breakfast free.  And Sunday brunch at my hotel was AMAZING!  People from the area go there for the Sunday brunch like its IHOP, its really that good.

Your business model is just too hands on for me I guess, but I did run the numbers and here is what I came up with.  Based on these I think I will stick with the straight rentals.

Furnished rental - 3bed/1bth - $2100 (70X30) must pay utilities approx $350, trash $20, water $40, internet $40, cable $100 - Gross income before prop taxes - $1550 that is also before furniture and entertainment expenses.  also have to assume higher vacancy rate than straight rental.  Also higher cleaning costs bases on high turn-over rate.  And it could quickly turn into a full time job just keeping them leased. 

Unfurnished rental - 3bed/1bth - $1200 Gross income before prop taxes.  No furnishing costs, lower vacancy rate, less hands on, less cleaning costs.

So for this duplex I will go with just a straight rental.  But I like your idea.  In NYC there are furnished rentals and they do very well.  So I know this business model does work very well.  I just dont think I am ready for it with this duplex. 
Now if I come accross a inexpensive SF that is maybe just a 2BD I might try it.   
« Last Edit: February 22, 2011, 01:15:22 am by WTSinvestor »
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Offline furnishedowner

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Re: My first deal
« Reply #19 on: February 22, 2011, 04:52:12 pm »
WTSinvestror,
Yes, if you can get that much for an unfurnished unit then you are better off doing that.

Here are rents are about $700-$1000 max. for a 3-bedroom unless it is really something special.

justin0419,
Thanks for the military per diem website info.

Furnishedowner

Offline WTSinvestor

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Re: My first deal
« Reply #20 on: March 06, 2011, 01:30:26 am »
Thought I would post an update to the Duplex rehab.  Sorry no pictures yet.

To recap we started with a 55K purchase price Cash (500 appraisal fee, wife is too

kind :banghead)

Now we are 11K into the rehab and one side is almost complete.  Just have to refinish floors.

The other side has only had plumbing and electrical upgrades and we already paid for the kitchen

cabinets and countertops.  I hope we can get the rest done with 5K.

I am deployed so have not seen the house in person the wifey is running the show.  I used to

get detailed updates on whats going on and expenses but for the past few weeks... NOTHING! 

Huge red flag for me I am pretty sure I will be literrally  :banghead when I get home (shortly)

and see and figure all the numbers for myself. 

The good news is that I know this place will gross net 2000-2400 monthly so there is some

cushion to justify the renovation costs. 

I am thinking if both units rent quickly I will not do the Vynil siding until a few years down the line.  Save that 5600 for a rainy day.

On a side note:

 Furnished, I think I found someone in my immediate area that is following your business model

I just saw his ad on cl and he is def trying to attract short term renters with his fully furnished

units to include nice TV, internet, cable and leases from 30days to 6mths.  He even goes into

how his apartments are better than the certain places most contractors stay in the area.

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Offline furnishedowner

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Re: My first deal
« Reply #21 on: March 06, 2011, 01:05:20 pm »
WTSinvestor,
It would be interesting to email or talk to someone who does the furnished rentals like I do.

So far I have only talked to a couple out of Kansas City who rent furnished to mentally-challenged individuals and their agencies.  They have a huge on-going and labor-intensive business.  Very interesting and profitable business model, but not one I thhink I want to handle at this time.

Good luck on your investment duplex.  Hope you give your wife some praise for all her hard work in your absence.  Even if she makes mistakes.  I make them all the time, myself.  There is a learning curve in rehabbing.

Furnishedowner

Offline gorderngarnar

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Re: My first deal
« Reply #22 on: March 09, 2011, 02:20:32 am »
I just partnered with my member and bought a real good 3/2/2 in a subburb of Politician. It's a foreclosure that needs small ($5,000) rehab. We are achievement to pay currency for it $54,000 and then take for $1200mth. So we apiece get $600mth! Now, go ask your boss if you can someone a $600 a month conjure and see what he says! I'm so intoxicated to be getting corroborate in to Concrete Estate after so extended. I joined the DG menage back in Sep '09 and there's so many deals out there it is rediculous! I craved to buy another, using finance this period but my hubby said I can exclusive do 1 at a minute! I'm intellection around wholesaling but
{move but I cerebrate there are a lot of those deals out there also. I"M SO Prosperous!!!!!

Offline justin0419

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Re: My first deal
« Reply #23 on: March 09, 2011, 08:27:38 am »
I crave to have a menage a trois on concrete and can do 1 a minute.
That's what I got from that...
If you like rock music, check out www.Lynamsucks.com
New EP titled "Halfway to Hell" is now available!
Check out the merch store on Lynam's website.

Offline kdhastedt

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Re: My first deal
« Reply #24 on: March 10, 2011, 07:50:38 am »
I just partnered with my member and bought a real good 3/2/2 in a subburb of Politician. It's a foreclosure that needs small ($5,000) rehab. We are achievement to pay currency for it $54,000 and then take for $1200mth. So we apiece get $600mth! Now, go ask your boss if you can someone a $600 a month conjure and see what he says! I'm so intoxicated to be getting corroborate in to Concrete Estate after so extended. I joined the DG menage back in Sep '09 and there's so many deals out there it is rediculous! I craved to buy another, using finance this period but my hubby said I can exclusive do 1 at a minute! I'm intellection around wholesaling but
{move but I cerebrate there are a lot of those deals out there also. I"M SO Prosperous!!!!!


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