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Mod B+B is a property development business model to create high design properties to market as short-term lease options. We believe that the market has urgently shown the need for these types of properties in the greater Phoenix area. The goal for Mod B+B is to not only provide great properties to the market but also to build value building assets for the company's ownership. The primary goal of the company is to create a balance of passion projects to create wealth with a healthy lifestyle and freedom for its ownership.

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1- Property evaluation tool

System for evaluating each potential property for further pursuit. Acquisition Cost and Renovation Cost estimates are more in depth. Could be done either via spreadsheet or app. Helps keep numbers clear and true, gives a checklist of easily forgotten items.

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Acquire + Renovate + Furnish + Rent

Convenience Packages:

Mod Pack: Includes basic amenities to hold the highest standard on Airbnb including extras

Concierge Pack: cook, driver, stock refrigerator and grocery, etc.

Airbnb:

GuestGuide.PDF (I have a PDF of mine as a sample, available upon request)

Automated Responses

Property Management

Cleaning


****I think we should talk a bit more in depth about the buying strategy and get everyone on the same page. Below is a buying strategy that I worked out a few years back for flips to help me visualize things.

Phoenix Area Property Investment Case Study

-Prepared by Joseph Ballard

 

1 - Example Property w/ Cash Purchase:

200,000    Cash / Purchase Price

 40,000    Rehab Costs

240,000    Total Investment

 

 275,000    Sale Price

   20,625    Closing Cost (7.5%)

            *-    Holding Cost (Technically you would have the cost of not accruing interest)

   14,375    Profit

      5.9%    ROI

 

2 - Example Property w/ Construction Loan Purchase:

 48,000    20% Down on 240k (Construction Loan) / Purchase Price

          -    Rehab Costs (Rolled into Loan)

 48,000    Total Investment

 

 275,000    Sale Price

   20,625    Closing Cost (7.5%)

  **2,000    Holding Cost (per 30 days) Mortgage

   12,375    Profit

   25.7%    ROI

 

*Utilities are not calculated into either study

** Variable Cost depending on Closing Date

 

In Conclusion: If long term continuation of either model is desired, a person within the entity needs to be a licensed real estate agent.

The benefits of the full cash purchase model is the overall control (no appraisal, faster closing, no monthly payments) and you can hold a property longer. If the investor is comfortable with it I’d say it’s less likely to eat up profit, but the liability extended per project is much greater. Full cash allows purchase of auction properties, off market, wholesale as well as tax forfeitures.

 

Goals:

What type of reasonable profits are we looking for?

What type of Purchase makes the most sense for us?

What is our per project cap on investment?

Timeframe per project?

Minimal reno house = 30 day reno, 30 market. reno budget 25 to $45,000

Medium reno house = up to 60 day reno, 30 market. Reno budget 46 to $60,000

Major reno house = up 90 day reno, 30 market. Reno budget 61 to $90,000


Airbnb Case Study + Saguaro Sanctuary

2 Bed / 1 Bath 848 sqft Condo - Airbnb Listing - MLS Details Here

Property Acquisition Cost: $115,500.00

Renovation Cost: $16,000.00

Furnishing Cost: $4,000.00

Total: $135,500.00

Rental Income by Month: (First 5 months listed / busy season) Estimated Yearly Rental Income: $25,000.00

D: $1,656.00

J: $3,347.00

F: $2,959.00

M: $4,168.00

A: $3,665.00

Total: $15,795.00

With the average monthly lease in the area of $1,200.00 x 7 mo: $8,400.00

$15,795.00 + $8,400.00 = $24,195.00

 

Like I said before, I was listing for $95-105 a night I should have been at $125-$150 per night. We wanted to test the first year and manipulate pricing around events / popular dates the following year to maximize the nightly stay price but still maintain the proper booking schedule to hit our marks.


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