All Forum Posts by: Alain Martinez

I bought my first STR property in January, rehabbed it, and now it's already in the market and generating income. I'm ready for the next one but I lack knowledge for the whole BRRR strategy. I was hoping you all could give me some guidance to get some money out of this property to use for the next one. Here are the facts:

I have a DSCR Loan for that STR property

I currently have an 8.925 % rate

I owe about $172.5K and the property is probably worth now $380K

STR was purchased in January

Given these facts, and with interest rates being so high, where and how can I get some money to proceed with the BRRR?

Also my primary residence has about 400K of equity.

Your help is greatly appreciated.

Can you clarify a few things here - you say there is a DSCR Loan on the property but it was purchased in January and then rehabbed? Was it just a pure cosmetic rehab - since DSCR Loans are more meant for the refinance piece and wouldn't be eligible pre-rehab if there was any significant rehab (generally more than $2k in needed repairs) - and also how did value jump by so much?

Something seems a little off - but assuming you want to start a new BRRRR I think the HELOC on primary + a hard money to buy the next prop may be the best best

Definitely spent more than 2K. In fact, I spent close to 50. Seeing the house's current value is actually another question I have. It appraised for 300K before I even did any rehab to it. It was original, untouched, and now everything is new, so I'm assuming the value to be higher now naturally. What else can I clarify? What seems off about this?

You got a DSCR Loan on the property now, did you get that loan prior to the rehab? A true DSCR loan shouldn't be possible if that much rehab was needed

Yes, prior to rehab. The house, even though was ugly and outdated was perfectly livable. In fact, it had a person living there prior to my purchase. I redid the kitchen, bathrooms, flooring, and paint, not sure if all this is considered only cosmetic.

0 Votes

Quote from @John Underwood:

Let the first one season for 12 months to make sure you can actually make money.

I heard of a guy that bought 2 pretty quick and then sold 2 even quicker because he was losing money at todays inflated RE prices and higher mortgages.

Slow and steady wins the race.

That's the plan, I plan to get the next one in January (12 months), that's low season over there and it will give me time to rehab it and have it ready by the season. I'm doing all this research ahead of time so I'm ready by January.

0 Votes

Quote from @Robin Simon:

Quote from @Alain Martinez:

Hello BiggerPockets community,

I have a DSCR Loan for that STR property

I currently have an 8.925 % rate

I owe about $172.5K and the property is probably worth now $380K

STR was purchased in January

Given these facts, and with interest rates being so high, where and how can I get some money to proceed with the BRRR?

Also my primary residence has about 400K of equity.

Your help is greatly appreciated.

Something seems a little off - but assuming you want to start a new BRRRR I think the HELOC on primary + a hard money to buy the next prop may be the best best

0 Votes

Hello BiggerPockets community,

I have a DSCR Loan for that STR property

I currently have an 8.925 % rate

I owe about $172.5K and the property is probably worth now $380K

STR was purchased in January

Given these facts, and with interest rates being so high, where and how can I get some money to proceed with the BRRR?

Also my primary residence has about 400K of equity.

Your help is greatly appreciated.

2 Votes

Quote from @James Carlson:

Quote from @Alain Martinez:

What's up everyone,

I want to invest in my first airBnB property. I live in Miami where most of the tourist destinations have airBnB restrictions and besides the prices in Miami are completely out of control. Where else would you look to invest for AirBnB. What other areas do you know that are nice AirBnB locations? I'm open to anything as long as it cashflows nicely. I want to focus on the tourist airBnB market vs the person working or going to a convention. Any reqs would be greatly appreciated.

Thanks,

Alain

Come on out to Colorado! 300 days of sun, beautiful mountains, Denver's an awesome city, Colorado Springs ain't bad either, great beer, legal pot, the economy is solid. The prices might not be much better than Miami, but the STR demand is pretty good, and the prohibitive Airbnb regulations in most areas decreases the competition for those who can buy in the areas that are actually friendly to short term rentals. Plus, who doesn't want a vacation rental to visit in Colorado?

That's definitely in the short term goal for me since I ski a lot. I wonder if the real estate season is the winter or the summer?

0 Votes

Miami, Florida

Hello,

I'm reading Rental Property Investing by Brandon Turner right now and I'm at the chapter about analyzing a property and seeing if it's going to be a good deal or not. There are quite a few things to take into consideration and instead of re-inventing the wheel I'm wondering if there is a tool (spreadsheet or otherwise) where one can plug in numbers and at a quick glance know if a property is worth a 2nd look? I probably sound lazy but there's gotta be a tool out there. Thanks in advance.

Alain

0 Votes

Miami, Florida

Quote from @Jean H.:

@Alain Martinez Miami investor here. I'm selling all my Miami/Ft Lauderdale Airbnbs (11 altogether) and buying near Disney. Kissimmee and Davenport are (and will probably continue to be) STR-friendly and my insurance went from $12,000 to $4000!

Yeah that has always been a choice on my radar. Is the real estate market there as crazy as in Miami?

0 Votes

Miami, Florida

What's up everyone,

Thanks,

Alain

4 Votes

Miami, Florida

Hello everyone,

I'm wondering if you all could advise me on best practice. Got 4 people including myself pitching-in for a project in Costa Rica. Everyone is bringing their own money, financed or cash. What's the best way to go about this? Should we open one account and put that money in there? If so where is the best place to open the account? USA? I'm the only one from the USA, the others are from Canada and Costa Rica. Anything things to avoid? What measures should be taken for max protection?

Thanks in advance.

0 Votes

All Forum Posts by: Alain Martinez

Alain Martinez has started 6 posts and replied 13 times.

Post: Got my first STR property, need guidance for next one

Post: Got my first STR property, need guidance for next one

Post: Got my first STR property, need guidance for next one

Post: Got my first STR property, need guidance for next one

Post: Got my first STR property, need guidance for next one

Post: Miami's is out of hand, where else to invest for airBnB .

Post: Tool to see at a quick glace if a property is a good deal?

Post: Miami's is out of hand, where else to invest for airBnB .

Post: Miami's is out of hand, where else to invest for airBnB .

Post: different peeps from diff locations pitching into project. how to