All Forum Posts by: Ben Unger

Thanks all, I will have to check out eXp and Broker Breakup. Its understood I would need to reactivate my license as well.

I'm looking for the lowest cost solution as an agent to evaluate my own deals using HAR. I am a non-active status agent, but would like to start using HAR again to evaluate ARVs with actual sold data. Is there a brokerage that would be recommended to join with low fees that I could accomplish this? Not looking to represent people for sales, but rather for my own investment search.

Thanks!

@Karl McGarvey I see the barrier to entry is quite high now. It makes sense for lenders to request proof of STR revenue. I have a HELOC with Penn Fed and need to see what they would require. Also, I'm not sure what would be a conservative rate estimate to use for analysis using HELOC funds as portion of down payment given the consecutive rise in prime rates. I certainly hope my HELOC cap rate of 18% would not be reached!

Hello BP,

I am having trouble setting up my buyer criteria. I have a target market of Galveston, Tx or Surfside, Tx and want to purchase my 1st Airbnb.

My available funds are about $50k savings and $100k HELOC from personal residence. I do have other rainy funds that would get me through a year of expenses. (Layoff, or other unforseen events) and my credit is great.

What realistic purchase price point I should be evaluating? And what should be used from the HELOC vs savings. ( Furnishings, down payment %, rehab, ect.)

I hesitate with the HELOC as home prices are falling and rates are going up. Not sure what adjustable interest rate I should consider for analysis? and best moderate risk way of paying it back.

Any help from examples of funding Airbnbs with combination of Savings and HELOC would be appreciated. Assumptions, risks, payback strategy.

@Gabriel Lamb I am looking at a similar HELOC strategy. Did you have a HELOC interest rate on your 80k and also on the 245k Loan as well? How long did you pay the interest only HELOC as well as 345k loan before refinancing? Are these holding costs built into your numbers?

Also, is your Property Management 10% a rule of thumb, or have you reached out to management companies, as I have seen this % can potentially be upwards of 16% when turnover is considered.

What is your plan with payback of the HELOC, since you are using it as a down payment? Do you have a interest rate on both your HELOC and $163k Loan? I am looking at a similar strategy, but cant seem to make sense of the numbers using it this way. Especially since most HELOCs are adjustable rates. I have seen using HELOCs for use in rehab costs, and if its enough even as full cash offer combined with personal savings. Then you just refinance to pay it back with traditional mortgage.

Looking for Houston Area lenders for primary residence HELOC. Any recommendations?

Given interest rates are rising, would it be more advantageous to try and get a loan assumption from a seller that has a better interest rate than what would be available on the market?

What kind of situation would even warrant that as a good option in 2022 and beyond. Can cash be offered on top to offset any equity required to make a fair sale?

Matthew, Congrats on your first deal. So in order to cashflow ~$1000 your putting away $150 per month to cover capex, PM, General Maintenance, tenant turnover, ect. That does not seem like alot to cover those expenses. Do you have details on those numbers or percent of rent that you are using in your analysis?

@Cassi Justiz I would agree with those points as well.

- I have already spent the money on repairs/upgrades and lived in the property going on 3 years now. My original analysis did not show really any cashflow. (i.e 4.5% fixed rate mortgage). If I refinance to 2.75%, with the same term, cashflow increases significantly.

- To your second point, I would rather use the equity from the sale to purchase another primary residence. That's part of the debate. Real estate is just getting more expensive.

- Home is in a solid area for growth. (Near Exxon Mobil and new HQ for Hewlett-Packard - North Houston)

Thanks for your perspective!