All Forum Posts by: Brad Jacobson

Hey BP Nation,

My wife and I are set on the idea of making our current residence a rental and purchasing a long term home for ourselves with a mother-in-law that would help cover the mortgage.

I'm curious what everyone's opinions are regarding the pros and cons of making the mother-in-law a typical basement rental vs trying to Airbnb the space.

Currently basement rents in our area for 1-2 bedrooms range from $600-800/month or so. Vacancy shouldn't be an issue for the standard basement rental in our current market.

What are your thoughts? Airbnb or rent?

Would Airbnb provide considerably higher returns?

Is Airbnb worth the extra work? We're planning on managing/cleaning it ourself.

Thanks in advance!

@Jake Stuttgen I'll start doing that today :) thank you again for the guidence!!

Do you mostly work with banks or credit unions?

@Timothy VanWingerden that's awesome news. I didn't know you could do a 90% and still avoid the PMI. UT is appreciating at a crazy rate and I could still cash flow alright at 90% LTV. Thank you for the suggestion!

@Jake Stuttgen thank you for the tips! Rent comps are looking to be $1,600-$1,700/month and skyrocketing in the crazy UT market right now. An 80% LTV would still cash flow great.

Do you recommend using a local credit union to refinance or is there a certain way you would go about finding a good lender?

Hi Everyone,

I currently owe about $195k on my primary mortgage and after studying comps closely (especially with my next door neighbor selling last month) I believe the house will appraise for $280k+.

My mortgage still contains PMI and is currently at about $1,200/month. I would like to refinance (instead of just removing PMI) and cash-out to help me start BRRRing (thank you David Greene!) I don't have much refi knowledge, what would you do as an experienced investor?

1. Refi at 80% LTV and cash out about $40k while still removing PMI?

2. Refi at 90% LTV? That would be amazing...

- Will I still have to pay PMI with this option? How does that work?

- I'm thinking about turning the home into a rental soon, after finding a good house hacking option. Does the 90% LTV only work for non-owner occupants?

3. Any tips for maximizing an appraisal (aside from a great presentation of the house)?

Thank you all in advance!