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Updated 5 months ago,
Creating a property management company to service my own property and I have question
So I own a triplex with 2 of the units being managed by a PM and used for Airbnb and myself living in the third and I have 20% equity. In the near future id like to move out and purchase another similar property but I'm trying to maximize my income and property performance before hand to give myself the best chance at qualifying for a fha loan 3.5% down. Ill put the questions I have below and if anyone has any answers or advice, I'm all ears!
1. I'm looking to self manage and also manage a few units of some one else's portfolio. When I do my own units, should I charge a really low price to my own property to make it self sufficient as it would then cover its own expenses, or should I charge the regular full price for cleaning and pay myself the entire cost for cleaning to boost my income? I don't know if their is much of a difference but that's why I'm writing here.
2. Do I need a full year of rental history to prove to the bank that it can cover its own debt? Are bills like electricity and water something that's figured into weather or not a property is self sustaining? Finally, If I'm living in the 3rd unit and plan to move out upon purchase of a new property, can they estimate the income of the 3rd unit will provide with me moving out and apply that to the property's sustainability?
Hopefully the questions are worded correctly, I have just been thinking about this over the past few days and figured someone might have some insight. Cheers!