All Forum Posts by: Alan Bostick

Yea, time to close is the primary reason for requesting cash payment. If a buyer is offering cash that means there is no lending contingency which in turn reduces the risk that the seller is wasting their own time. 

Hello Billy Farley!

I am not sure about Richmond VA, but in my area in order to have the basement be considered part of finished Sqft is to have an escape route that does not include the access to the main house.
So this would entail having direct access to outside the home from the basement. Thru a deep well window that swings open or actually digging down the side of foundation and adding a door leading out of the home. 
Could be different in Va though.

Thanks everyone for your time and input! Hope to see you all out there killing it in STRs! 

Hey guys! I am looking to buy my first STR in the Smokey Mountains in Tennessee this spring/ early summer, and am looking for some input from experienced owners in the area. I will be investing with an active equity partner with a price range of 400-600k. I have read and am currently re-reading the BP book on STRS.

Could you shout out some lenders that are familiar with lending on STRs? What are some of the terms I can expect being first time STR investor?

What kind of reserves are lenders looking for in a property 400-600k range? 

What average price for insurance are you experiencing right now? 

What are some mistakes you made while starting up your first STR?

Can you recommend companies to get furniture and commercial bedding that work well for you? (Is it traditional for cabins in the Smokey’s to be sold furnished?)

While this is not an all inclusive list of the questions I have, What questions have I not asked that I should be asking? (You don’t know until you know, you know?) 

I appreciate any and all information! 

Hey Jeff, you could look into The Applecreek Banking Co. ask for Mike Frost, they have many commercial loan packages for residential. Most branches are in Wayne county just south west of Akron, but they do lendinf in the Akron area. 

@Amit Chawla thanks so much! I’ll keep that in mind!

@Scott E. thanks for your input on this! I have been studying up on this topic and will continue to do so! 

Hello! I am looking to purchase a small apartment complex, they want it at 6.52 cap rate, 5.25M asking.   (I think) I vaguely remember something being said that if you make a purchase with your interest rate higher than the cap rate it will eat most if not all of the profit. With rates being 7-8% would this be a wise point in entry for this asset type? I have only taken  preliminary look into this specific property. 

If you are still living in the property then The loan status would not change. FHA requires owner occupancy for 12 months. So if you don't refi into FHA you should be good. And refinance would depend on how much you owe now, how much you can pull out, will market rents cover your expenses with higher mortgage payments. And the kind of return you can expect to get from the monies you pull from the property. Figure out your return on Equity, would it be better for you to sell than refi?.

@Jaron Walling if the cash out refi is done in an llc, could one transfer any of that amount from llc to personal account and still not pay taxes?