All Forum Posts by: Amit Sharma

@James Ohliger
I came back to the forum for a similar matter at hand. 

Perhaps I'll search more on the limited information I currently have. here goes : 

I learnt that people establish a "land trust" , and buy the property under the trust. - where in initially they as individuals are the trustees, and later they simply change (not sure if that's quit claim) the trustee to LLC.

My current understanding is : One gets cheaper mortgage, LLC owned outcome, No "due at sale" clause is triggered. Based on your question - I'll also explore on changing the trustee (Individual <>LLC) ...instead of the quit claim Individual <> LLC.

I may not be directly answering all your questions, but thought of sharing a different perspective I am learning. 
This isn't legal advice obviously. Something to explore. 

Thank you @Jay Fradd . That is a very usable detail. 

@Sean Wilson"That AIRDNA ranking"  it was for me. I did a deeper dive in AirDNA and I found signs of what you mention here. Appreciate the info

Thanks @Ryan Moyer. This is a lovely takeaway for me. 
I'll reach out to folks at STS. Thanks so much 

 Open to other cities in / around Smokys as well as FL pan handle. 
I saw that AirDNA recommended Chattanoonga, TN last year as a hot investment destination. Open to something like that. I see. MAkes sense for 25%. 

 yep. I just quickly learned that by adjusting my excel. 

Thank you @Avery Carl. That helps alleviate the cash down pressure quite a bit. 

If I am not going to be staying near the property then I guess go for a smaller property management setup instead of a full incorporated company?

Will the cleaning fee be included in the payment to the prop mgmt company  whether medium or large entity? (say roughy at 15% for Medium and 20% for large?). Looks like for me there is no way to self manage, so I am prepping for that hit on my cashflow.

Would you advise to go the route of buy land and build? Does that have a tax advantage? Haven't come across that in my research ( which includes your wonderful videos). 

Thank you in advance. Looking forward to the group zoom call with STS.

Hello Group. I am in the beginning phase of my journey towards 1st listing. So every variable, and every unknown is an uncertainty that I need to flip into a confirmed piece of information as I move forward. Request you all for your kind inputs and assessment for the income / expense sheet below. 

This is for Market : Gatlinburg. 

Price 450,000 ( Yes, very conservative)

Interest rate 6.5%

Avg Nightly Rate $180

Avg annual Occupancy rate - 63%

Going with a property Manager commission of 20%

I landed up with -ive cashflow. 

Questions for y'all.
1. Are these numbers close to accurate ( ball park of real life operations)? Does that mean current market doesn't allow a 450K property to have a +ive Cashflow?
2. Is the first property usually a low(or -ive) cashflow investment, where one builds equity to hopefully scale into a 2nd property with a net +ive cashflow?
3. The current listings on zillow for 2B2Ba are almost always more expensive than 450K. Should one wait out this year for price corrections to kick in?
4. What's the experience for any new buyers in 2023 at the current prices when they calculate their cashflow?
5. Any folks here who tried buying land, and built cabins there incrementally over a period of time ending in say 2..4 cabins on a lot?

Really appreciate your time & inputs to help me.