All Forum Posts by: Alexander Jenkins

@Brad Sand I’m purchasing at market value. It was going to be listed but I was able to put it under contract before it hit the market.

@Kevin Semenas

I understand what you’re saying. However, I think it’s still easily profitable with that amount of interest and I’m going into it with the understanding that I will need refinancing to a more institutional loan within 12-24 months. A lower interest rate will increase profitability, I don’t think the 11% is the deal breaker here. It’s only a different of 350ish dollars a month in payment compared to a 2.9% interest rate I could get on a primary home mortgage right now.

@Nic Stergion

Also I am supposed to close in a week but I have had it under contract since around June 20th. My original plan fell through though.

@Brad Sand

Yes, the hotel motel tax is 8% for the county which I will take off the top. Definitely plan to be legitimate, I have already started the process to change the zoning to allow for short term renting even though I don’t own it yet.

@Nic Stergion

It was going to be a property listed by another agent in my office. I put a contract on it before it was listed. But I gave them an FHA pre approval letter. What makes it seem like not the right time to purchase to you?

@Brad Sand

Thanks, the only number (which also may be the most important) that I’m not very certain on is the occupancy rate. I actually think it will do better than 65% but I felt like that was conservative enough. I just couldn’t find accurate info and the sites I checked had info for a whole area not a the hyper local resort area I’m buying in. And it was for all size and types of places. Just not very specific. I tried reaching out to a few vacation rental owners without much luck. Maybe if I contact some of the property managers in the area I could get more accurate occupancy numbers.

I think pitching it as a 33% return (or whatever all the exact numbers I have come up with) would be a great way to present to someone willing to put up the money.

I really appreciate all your ideas!

@Brad Sand

Wow thanks so much, I hadn’t thought about pitching it that way to a potential investor. I had a partner originally but they backed out so I have now I’m trying to figure another route. I’m supposed to be closing on the 28th of July so I’m pretty pressed to find out what I can do.

Thanks for all the advice, now I just need to get on the phones and call everyone I know and get it back on track to close!

@Brad Sand

The mortgage payment would be about 1070, taxes are about 800/year and my insurance quote (with short term rental insurance) is about 750/year. I planned on managing myself, I only live about 40 minutes away.

Based off other STR comps in the area I figured an average nightly rate of 140 and at a 65% occupancy rate throughout the year I came up with the appx 35k/year gross income.

I think it’s a great investment because of its location and price, it’s only 1 mile from the middle of Helen GA which is a huge vacation spot most of the year. And it was also renovated in the past few years and everything in the home is transferring with the sale. It was someones second home before but it’s already decorated how you would want it to be for a short term rental.

@Todd Rasmussen that’s a great option. I know the sellers are pressed to sell it so that may be a good possibility. Thank you so much

@Todd Rasmussen I’m open to that definitely, and I hear what you’re saying about it being an iffy time. I do have some reserves but I don’t want to throw everything I have into a down payment and not have any money left for unexpected expenses. The deal just looks very good on paper, especially if I’m able to put just 5% down.

I just don’t know what direction would be best for me at the moment.