All Forum Posts by: Brandon Del Boccio

@Andrew Simms this is my first one so looking to make anything really. Goal is to get more and use this to build on. Where do you currently have STRs and what is your monthly income after expenses on them? 

@Nancy Bachety that makes sense. Where is the best place to get the data on these listings. I have seen airdna but any others that you use?

Quote from @Corby Goade:

Quote from @Brandon Del Boccio:

Hey all, happy Friday! 

I was approved for a non term HELOC loan for 100k at 7.5% variable rate. Looking to start my first short term rental in the Saint Augustine/butler beach/crescent beach area. For those of you who have done it before, what should be my price range I should stay in when purchasing a new property? I would prefer to not use the entire 100k and also I want to have at least 6 months of reserve in the HELOC. This way I am prepared if we do not make enough money to cover mortgage and other expenses.

Would love any feedback, really appreciate everyone’s help! 

I use a HELOC for investing all of the time- like anything else, there is a risk/reward balance that only you can decide if it works for you.

When I use my heloc, I want to know that I have the means to pay it off in full in no more than 24 months. Depending on the deal, there are a few ways you could potentially do that, but the easiest is through BRRRRR- just build enough equity so you are confident you can refi with a conventional (or DSCR loan) in 12-24 months.

If there's enough cash flow to pay it off in two years, that's awesome too- very unlikely though. 

If the deal works for you for a different reason, but won't have the cash flow or equity to do either of those, be sure you have income from another source to knock it out asap. 

Finally- if you want to go the refi route, talk to a lender before you draw on your heloc- DTI becomes a real challenge for people in these situations and you don't want to learn that you can't refi when it's too late.

Best of luck!

Hey thanks for the response! My goal was to use the HELOC to pay for down payment and have a 6 month reserve to use for mortgage payments and other costs during the ramp up phase. Most likely won’t be able to pay off in 24 months. However, if I begin to make money and go cash flow positive, wouldn’t it be ok to have the loan open for longer and continue to pay it down? 

Also what are your thoughts for price range I should be looking at with this amount I was approved for? 

Thanks again!

Hey Brooklyn,

Thanks for the response. Your correct, I am not looking to use the entire loan. Have you purchased any STRs? Also do you think I should keep my purchase price around 250-300k? 

Hey all, happy Friday! 

I was approved for a non term HELOC loan for 100k at 7.5% variable rate. Looking to start my first short term rental in the Saint Augustine/butler beach/crescent beach area. For those of you who have done it before, what should be my price range I should stay in when purchasing a new property? I would prefer to not use the entire 100k and also I want to have at least 6 months of reserve in the HELOC. This way I am prepared if we do not make enough money to cover mortgage and other expenses.

Would love any feedback, really appreciate everyone’s help! 

Hey all, getting everything in order to purchase my first STR. Any ideas/strategies to use that help get bookings quickly after purchasing. Hoping to not sit on a place and have it unoccupied for awhile after initial purchase.