All Forum Posts by: Alan C.

I have a 15-bedroom, 16-bath Valencia model home being built in Sonoma Resorts, Kissimmee, FL which is ideal for STRs as each room has its own private bathroom. The location is less than 20 minutes from Disney World. The home is also located only several homes away from the main resort pool. Sonoma Resorts is building out its phase 2 of 4 project. I placed a deposit and it is being built to be completed sometime in November-December 2023. I am willing to sell it for $1.36 million if anyone is interested in taking it over.

There are very few Valencia models, so they do well with STRs. See Topvillas website for other current Valencia models to see their current calendar and rental rates.

Please PM if interested in more details.

Hi all,

I am looking for options to borrow roughly $300-500k to close on a new STR home build that will be completed roughly around the end of summer 2023 (it is a $1.3 million project and I have about $450k deposited and have a $500k HELOC, but will need more to close and furnish/decorate). What options would you suggest? A bridge loan, then refi after furnishing it has been completed? Any suggestions would be much appreciated!

Thank you Nancy and Austin for your advice and recommendations. I will reach out to Dani for further advice!

Thank you John for your input.

I was curious if any STR owners in the area find that most renters in the historic DT area are looking for shorter stays (like weekends) rather than a full week. Perhaps the beach rentals can rent more easily for longer stays but are far more expensive from a STR investment standpoint? Are renters in the DT area looking more for an old Victorian house, or is walking distance most important?

I was looking to purchase a STR in the St Augustine area. I am seeking guidance on what type of homes do best and which locations generate the best rental returns. I read that finding good cleaners and handymen are more challenging here. Any advice would be much appreciated.

Thanks so much for the input. I've decided to go with the cash out option as I believe I could use this for another investment.

I am refinancing a duplex and can buy down points to get a 3.125% APR on a 30 year fixed mortage (will cost me $11k to buy the points). This will be a long term hold investment. If I went through with this option, I would be positive cash flowing $750/mo on this property which is very enticing.

The other option would be to cash out ($110k) but the rate would go up to 3.875% APR and it would cost me $17k to buy down the points. This would put me in a cash flow neutral position.

I was planning on retiring in 3-5 years and so the positive cash flow would be very helpful then, but if I cash out, I could use this for the down payment on another property. 

My opinion is that inflation will be sustained for at least the next 5 years, and that I could grow more equity during this time while real estate values go up...and then when I finally retire, I can sell one or more of the properties, transfer it via 1031 exchange into a Delaware Statutory Trust, and maximize cash flow then.

What do others recommend if they were in the same position?

Thanks!