388: How to Save Your Cash Flow When Dealing with a “Problem” Property w/Ashley Robinson

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 3 April 2024

⏱️ 47 minutes

🔗️ Recording | iTunes | RSS

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Summary

How many things can possibly go wrong with ONE rental property? Well, you’re about to find out! Today’s guest had to flex her problem-solving skills on multiple occasions to get her “unique” rental up and running, and in this episode, she’s going to show you how she pulled it off! Welcome back to the Real Estate Rookie podcast! Investor Ashley Robinson bought a triplex in the little town of Salida, Colorado, with plans to live in one unit and rent out the other two. Despite her thoroughness during the due diligence phase, however, she ran into several problems along the way—from rental caps and building code issues to financing troubles and poor home appraisals. But Ashley persisted, creatively working through each hurdle until she was finally able to launch her cash-flowing rental property! If you’ve ever hit a roadblock in your investing journey, this episode is for you! Ashley shares how she chose her investing market, changed her property’s use to sidestep rental caps, and got her building fully up to code. She also talks about the ins and outs of commercial loans—getting approved, coming up with large down payments, and refinancing when your property’s appraisal comes back low! In This Episode We Cover: How to convert a residential property to a commercial property Zoning versus land use (and how they work together) The biggest advantages of investing in a smaller market Short-term rental caps explained (and how to work around them!) How to get approved for your first commercial loan Funding a LARGE down payment for a commercial property And So Much More! Links from the Show Find an Agent Find a Lender Ashley's BiggerPockets Profile Ashley's Instagram Tony's BiggerPockets Profile Tony's Instagram Real Estate Rookie Facebook Group Join BiggerPockets for FREE Submit Your Real Estate Rookie Question! Apply to Be a Guest on the “Real Estate Rookie” Podcast Rookie Reply: What to Do When an Appraisal Comes Back Low? Do You Know the Fundamentals of Zoning Rules? Here’s What You Need to Know Wait: Don’t Get Started On Your Development Project Unless You Have Zoning in Place Connect with Ashley Ashley's BiggerPockets Profile Ashley's Instagram Ashley's Website Check the full show notes here: https://www.biggerpockets.com/blog/rookie-388 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email: [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is real estate rookie show 388.
0:05.0	Have rental caps plagued the market you want to invest in?
0:08.0	Are you confused by zoning restrictions?
0:11.0	Well, today's guest found a creative solution when looking for a way to invest in a capped
0:17.1	short-term rental market in Colorado. So guys, my name's Tony Jay Robinson, your host for today's show, and welcome to the Real Estate
0:24.3	Rookie Podcast, where every week, three times a week, we bring you the inspiration, motivation, and
0:30.0	stories you need to hear to kick start your investing journey. So today I'm here with
0:33.8	Ashley, not my co-host Ashley Care, but another Ashley, Ashley Robinson, no
0:39.0	relation to me, but Ashley and her husband are military vets who've done a number of living flips and now work full time in real estate.
0:47.6	So we're here today to deep dive on a problem property that Ashley was able to find a unique work around for and how you may be able to do the same and making zoning work in your favor.
0:58.5	So Ashley, welcome to the show. Happy to have you on board today.
1:01.5	Hey Tony, thanks for having me.
1:03.4	So I understand that you submitted a question to seeing Green,
1:06.3	which is from our sister podcast, the real estate show.
1:09.4	But you actually end up solving this question on your own.
1:12.6	So I'm excited to dive in and kind of understand how you did that.
1:16.7	But first, let me read the questions so our listeners can understand what your situation was.
1:21.7	So here's Ashley's question. It says I'm trying to decide
1:24.4	between my options for increasing the value of a duplex I recently purchased. It's
1:29.6	in an area with short-term rental caps and the waitless is extremely long. The duplex is on
1:35.6	commercial land and it has a third unit that was created but not to code and never
1:41.3	permitted through the county. I live in the main unit with my spouse and we want to rent the other two units.
	...

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