All Forum Posts by: Aaron S.

On the ADU's specifically, I can't really comment. We have an up/down conversion where we rent the studio basement as a STR. But bc we're not zoned for 2 units, every year permitting checks for a cook top/stove. If we had one, we'd automatically be non-compliant bc of our zoning. We also can't have an ADU, so my guess is the two go hand in hand, and owner occupancy is less of a factor.

I think Annapolis opened that opportunity up in 2021: https://www.annapolis.gov/1844...

But obviously, check zoning: https://www.annapolis.gov/Faq....

The other thing to note- you've got a limit on STR permits (don't believe there's a limit on long term). If you can find the right properties with available space, in theory you could do it, but there just aren't a ton of places that come available and fit the criteria... so scaling might be challenging. Also, I've seen/heard/etc. that permitting in historic Annapolis is not pretty so keep that in mind for extensive rehabs.

@Andrew Postell this is fantastic, thank you! Specifically, on your first point, I appreciate the clarification. Oddly enough I've heard differing viewpoints on this which is what prompted my question in the first place. I agree with your second point. My expectation is to gather enough equity (and hopefully appreciation) to cash out if/when taking the consolidating step. And I like the "use the best available" idea... very much aligns with everything else!

@Don Konipol 

Appreciate the detail! Removing personal guarantees is certainly an aspect I'm weaving into this as well. The high LTV may be restrictive to start at least, but great to know there's the option down the road.

Hi BP Community, 

Question for investors/lenders on portfolio loans vs commercial and conventional options with regard to the 10 property limit. I currently have 8 properties, 7 of which are rentals and one is my primary. My assumption is that a portfolio loan would free up conventional "bullets", thus would be a positive from a financing perspective but wouldn't have the benefit that commercial financing (via a LLC) would from a liability perspective. Do I have this trade off correct? Is there a standard way investors structure their last handful of conventional deals? I assume sizing is a consideration as well - as in saving conventional loans for larger purchases vs smaller ones? Thanks in advance and happy to be part of the community!