RentalStarter - A Midwest Real Estate Investment Company

[Chris_Sabian]

any information on the June dividend?

[Branny]

any information on the June dividend?

Give me 15m to break it down, will explain the delay

[Chris_Sabian]

any information on the June dividend?

Give me 15m to break it down, will explain the delay

Ok. No worries.

I figured you were busy buying up most of central Ohio 

[Branny]

June's dividend will go out in the next few hours, here is the breakdown.


Logan - $600 rent | $400 after expenses - $188 investor yield.
W. Mill - $1,000 rent | $700 after expenses - $329 investor yield
Scioto #1 - $550 unit A + $460 unit B + $350 unit C = $1360 rent | $850 after expenses | $399 investor yield
E. Mill St - Still in Rehab
Mulberry - Still in rehab
Scioto #2 - $650 a side X 2 = $1300 rent | $900 after expenses | $423 investor yield
Walnut - Still in rehab

Total investor yield = $1,399 US Dollars
Coinbase BTC/USD Price as of 6/16/2014 @ 11:08 - $594.97

2.351btc investor payout
Yield as per Havelock - 4.3% APY

Net property equity - $555,000 (After repairs)
Total cash in bank after liabilities & outstanding repairs are accounted for - $74,375 approximately.

Net asset value of company - $629,375 or 1057btc. , $4.12/share or .006935btc

[Branny]

As for late dividend.

This was father's day weekend here in the US and I had been invited to participate in a fishing charter up on Lake Erie near the Canadian Border (We actually got within a mile of the Canadian border).  I was collecting rent & figuring expenses up till the moment I left and I didn't have the ability to schedule the payment before I left. I use T-Mobile for my cell phone and their tower can't support the hundreds of thousands of people that were there this weekend.

What's significant about my trip to Oak Harbor/Port Clinton Ohio was the fact that I'm always looking for investment. The group of guys I was with rented a condo that cost $1,000 for the 3 day weekend. Everyone joked about me buying several condos up there so we could have a place to stay next time, but I didn't take it as a joke.

When I came back here to Central Ohio Sunday night I started researching condo and vacation house pricing and metrics. What I found was pretty amazing, you can get a condo or house needing a rehab up there just as cheap as you can here. I located a few dozen condos (Even ones in the specific complex we stayed in) for $50,000 to $75,000.

Now, you're gonna ask yourself why a $50,000 condo rents for $1,000 per 3 day weekend when the season lasts from May through October. The answer is management - Everyone that rents their condo out up there hires a local Real Estate company to manage it, procure renters, clean it and so on. Said firms take roughly HALF of all income off the property. This leaves you with a much lower return.

So, I said to myself "We can manage it ourselves!" Thankfully i have all the contacts needed to set up a pretty robust management setup. Automated rent collection (Which few seem to be interested in), automatic advertisement, and fix most of the issues one could run into with automation. It also would help that I'm less than a 3 hour trip from up there.

This isn't something I want to do so soon, because when we buy property I want 4-6 properties and not just one. The investment will run around $350,000 or so, and would have a return I figure of roughly $100,000 a year in profit. A great return, but nothing too crazy since we can get similar yields here. I think it would be a good investment to diversify our portfolio. Part of this would also help me to springboard the plan/method to Florida and do condos down there in similar situations, all while avoiding management fees. The only purpose is for diversification, which I Think would work well ,and we can maintain a high yield on the properties as well as appreciation.

In current business news - Our bid on Scioto #3 was accepted by the sellers at $23,000. It needs <$6k in repairs (Not so much as repairs, but we're finishing the attic into a big bedroom). Rent will be ~$650/month or 26.8% Simple interest.

As always if you have questions just let me know!

[DebitMe]

The main thing about "condos" is keeping them rented and clean up.  My family had looked into that in the past, and the work that it would take to find renters without paying half of the income out was astronomical.  If you have the channels set up, this may be mitigated and become easier, but it is still quite an endevour and would take a lot of time, just to keep them rented.  Also, busy times are very cyclical where you would be busy at certain times and slow for others.

Then you add cleanup, in a rental house, you have families moving in who rent yearly, and you really only need to evaluate the property once they move out.  But with a condo, where people are renting every 3 days, you will constantly be making trips to clean up after the previous tenants and get it ready for the next ones.  Add on top of that, that you will be getting a lot of college kids for spring break or other school holidays who are partying and drinking, and cleanup can be more work than one might expect.

On the whole it is a good idea.  If you have the channels in place to keep those units rented, then it could be a great investment (especially if you give discounts to investors but I foresee keeping them rented and cleaned as being a bit of work, this just coming from someone who has actively investigated this space in Myrtle Beach, SC (obviously different pricing conditions, but the main points are the same).

But, I am sure you will do your research and due diligence before jumping into anything, just wanted to throw in my 2 cents as I would like to see this be successful and grow my investment.

[Branny]

The main thing about "condos" is keeping them rented and clean up.  My family had looked into that in the past, and the work that it would take to find renters without paying half of the income out was astronomical.  If you have the channels set up, this may be mitigated and become easier, but it is still quite an endevour and would take a lot of time, just to keep them rented.  Also, busy times are very cyclical where you would be busy at certain times and slow for others.

Then you add cleanup, in a rental house, you have families moving in who rent yearly, and you really only need to evaluate the property once they move out.  But with a condo, where people are renting every 3 days, you will constantly be making trips to clean up after the previous tenants and get it ready for the next ones.  Add on top of that, that you will be getting a lot of college kids for spring break or other school holidays who are partying and drinking, and cleanup can be more work than one might expect.

On the whole it is a good idea.  If you have the channels in place to keep those units rented, then it could be a great investment (especially if you give discounts to investors but I foresee keeping them rented and cleaned as being a bit of work, this just coming from someone who has actively investigated this space in Myrtle Beach, SC (obviously different pricing conditions, but the main points are the same).

But, I am sure you will do your research and due diligence before jumping into anything, just wanted to throw in my 2 cents as I would like to see this be successful and grow my investment.

Realistically investors could rent them for free in off-peak times or for a major discount around/near peak times.

The reason I mentioned 3-4 properties is that you then would be paying one specific dollar value for advertising. Alot of these guys buy one condo, pay say $1,500 per season on advertising for the people to be interested. We'd be paying the same $1500 per season and funneling people to 4-5 rentals that would have varying needs being met. In the off season we then can donate the property to local charities (Churches specifically) who can put up ministers/ect in the properties and we then can further reduce our tax liability.

The big secret will be developing an advertising/rental platform (AirBnB is great for this) to insure good rentals through a season. As I have said before, I have a background in Real Estate, and have delt with this stuff plenty of times along with understanding the business model. The condo renting business has many similar problems to traditional renting, the difference being everything is accelerated and done each week rather than once or twice a year.

Edit - a potential investment here in Circleville has dropped down to $22.9k. 3br 2ba, would rent for $650-$700/mo. I'm not willing to commit at $23k but might do it at $17k or so.

[VJain]

I think an Air BnB model would be great. One of my friends rents a Vancouver condo for approx $2000/month, and uses it as a BnB and is apparently getting a return of close to $3500/month (excluding expenses).

[Branny]

Met with potential tenants for Walnut, we have set the move-in date for July 1st, so it *should* show up on the July div payment when it goes out.

That will put us at 8/12 units rented, $5,050/mo in gross income out of $7,775 when everything is 100%

E. Mill *should* be tenanted by the div pay period which would add up to another $750/mo onto July's total income (Or $5800 gross| 9 of 12 units rented). Scioto #3 *should* be a 1 week or 10 day period and that also may show up, but I wouldn't push it. If E. Mill & Scioto showed upon the period that would bring us to $6475 and 10/12 rented.

[Kushedout]

Good news, Great progress.
At this point, I can care less what the share price is, divs look good

Thanks Branny.

Met with potential tenants for Walnut, we have set the move-in date for July 1st, so it *should* show up on the July div payment when it goes out.

That will put us at 8/12 units rented, $5,050/mo in gross income out of $7,775 when everything is 100%

E. Mill *should* be tenanted by the div pay period which would add up to another $750/mo onto July's total income (Or $5800 gross| 9 of 12 units rented). Scioto #3 *should* be a 1 week or 10 day period and that also may show up, but I wouldn't push it. If E. Mill & Scioto showed upon the period that would bring us to $6475 and 10/12 rented.

[Chris_Sabian]

Excellent news.  Glad it is working out for you (and us)

[pummle]

Good news, Great progress.
At this point, I can care less what the share price is, divs look good

Thanks Branny.

You should care what the price is. If it is really low then you should buy some more shares, if it is really high then it makes sense to sell some.

[AcoinL.L.C]

Price is very very low, it dropped ~20% 

Dont mind picking up a few shares my self

[Chris_Sabian]

If you look at the volume of the trades on Havelock, there isn't much.  Most of the trades are 1-10 shares with an occasional 30 share trade.

[thehun]

If you look at the volume of the trades on Havelock, there isn't much.  Most of the trades are 1-10 shares with an occasional 30 share trade.

Yep. If i wanted to dump my ~1500 shares I would make the price plummet, and if instead I purchase an extra 1500 the price would double

[Kushedout]

If you look at the volume of the trades on Havelock, there isn't much.  Most of the trades are 1-10 shares with an occasional 30 share trade.

Yep. If i wanted to dump my ~1500 shares I would make the price plummet, and if instead I purchase an extra 1500 the price would double

Can you please dump that 1500 shares?      but let me know first before you do.

[AcoinL.L.C]

If you look at the volume of the trades on Havelock, there isn't much.  Most of the trades are 1-10 shares with an occasional 30 share trade.

Yep. If i wanted to dump my ~1500 shares I would make the price plummet, and if instead I purchase an extra 1500 the price would double

Dump the shares, could use more cheap shares

[Branny]

A personal friend of mine asked me how/where to buy shares in the company , as he wants to allocate a lump sum + a portion of every month's check towards RS share purchases.

What's interesting to me is just how much a $5,000 USD investment will raise the share price. All the share price crazyness is due to low volume more than anything else. I should likely buy some more shares, but then due to the low volume my money will only buy so much before it's back up again pricewise.

[thehun]

If you look at the volume of the trades on Havelock, there isn't much.  Most of the trades are 1-10 shares with an occasional 30 share trade.

Yep. If i wanted to dump my ~1500 shares I would make the price plummet, and if instead I purchase an extra 1500 the price would double

Dump the shares, could use more cheap shares

Nope, I'm actually in for the long term and definitely not selling at this low price 

[NotLambchop]

Boop!