All Forum Posts by: Brian Moseley

We own a property in Bradenton that is currently under construction and plan to use our good friend Sharon Underwood. She has been a realtor and formally a contractor for decades. She is from the area and has valueable insights and contacts. Her number is: 9418223174. Tell her Brian Moseley from Georgia refered you.

@Brandon Hall Right! Thanks for the clarification! 

I use a CPA who does the taxes for a large number of real estate investors and owns investment properties. He says that one can only be considered active and use those losses if the majority of one's income is from the investment properties (not a job) and a certain amount of hours are spent operating the business. Otherwise, it would have to be considered passive income.

@Tom Heidel

Welcome to BP and South West Florida. We recently found BP and have been between Georgia and Bradenton for over 20 years. You could not have chosen a better area of Florida to stake your claims. Good luck!

We are new to the vacation rental business but our recent experience so far as the financing goes, is that most lenders will not consider "short term" rental income. They mostly will consider projected monthly rental income in the equation for investment property loans.

In researching comps of rentals for income, make sure the location and features are similar to yours as well. A rental 3 minutes  from the beach will usually bring higher rates than the exact same house that is 30 minutes from the beach.

Yes, but we will always be learning. Thanks 

@Lynn Bown

Good information!  Thanks

@Jared Townsend 

Thanks, we did exactly that on our insurance. We had to get the elevation certificate in the planning and permitting phase.

We have been researching and planning for three years to get ready to start construction on our vacation rental in Bradenton, Florida in a few weeks. I had to take a crash course in FEMA flood zone regulations, The Biggers / Waters act with the subsequent removal of government subsidies flood insurance industry, the 50% rule and the new face of available flood insurance in Florida. Plans went from planning a renovation of the existing house on the ground, to finding a contractor and building a new elevated house.

Bottom line, if you own a second home or vacation rental in Florida and it is below the base flood elevation as defined by the FEMA flood maps for your area, you will spend a large amount of money each year for flood insurance through the federal program (if it is your primary residence, your get a huge break on the insurance but I don't think that will last forever). There are some independent insurance companies backed by Lloyds of London that are reasonable and much less. We are building our home elevated above the BFE, so our insurance is a fraction of that cost with a standard insurance company. All lenders require a flood insurance policy for the duration of the loan.

I have been in a similar situation before. One way other than increasing your income or decreasing debt might be to refinance with cash out option but your inome may still be a factor. Another option would be to find a partner in the form of a cosigner to off set the ratio or to invest funds under contract.

The parameters of the HELOC are relatively ridgid. There are some mortgage brokers who may offer some options but BEWARE. It is possible to be drawn into the abyss of empty guarantees and paperwork. Before you know it, a year and thousands of dollars have gone down the hole and suddenly, they just can't do it. Find a Credit Union that offers loans on real estate and join. They will offer the best rates / terms. Good luck!