All Forum Posts by: Brian Ronning

Recently bought a SFH that has tenants currently month to month in place. What is the proper and best way to give them my information for paying rents and contacting me, etc. What else would you include in a letter to new tenants?

Any tips would be great!

@Jay Hinrichs

I don’t need the money, I want it to be able to cover the expenses for the off season while I am pursuing a brrr property. It’s an active air b and b, but are nearing the end of the busy season, I would prefer to not just have seller credits..although, is it possible to get the seller credits and borrow that extra money from the bank to cover costs till the busy season picks up?

@Ricardo R.

I was thinking about going with a loan that would cover the property ad a “vacation home” the property I’m looking at is a single family home that is used as a air b and b. I’m getting towards the end of the season and want some cash from the deal as operating money. I have the funds to do that and then some, but I want to use those funds for a brrr that I’m pursing now as well.

When buying your first STR late in a season and you want some operating money to get through the slow season, how can you structure your deal to get the buyer to write you a check at the closing table?

Dave Skow,

I don't necessarily need it in my LLC, I would however, prefer it in my LLC. Does that make a difference in the way I might be able to find financing?

Eric Veronica, I have only the apprasial ordered as of now. If my bank doesn't want to or can't work with me for a 30 year note, should I consider moving onto another bank/ private money lender for these 30 year conventional loans for a rental property?

Quote from @Daniel Baccarini II:

When you are doing your calculations, what is the interest rate that you are using? A DSCR loan could be a great option if you are holding under an LLC but I'd be curious as to the interest rate that you need for the deal to cashflow for you.

 It is not the interest rate that is making this deal not work for the long term tenant vs. the short term tenant. It's the repayment term of 20yrs vs. 30yrs. 

Quote from @Eric Veronica:

That seems like odd advice.  As @Robin Simon mentioned you could look at a DSCR loan however you can also likely look at a conventional loan which offers a 30 year fixed. We finance 30 year fixed investment properties every day. You will be the borrower however you can deed the property to your LLC after closing as long as you have majority ownership interest in the LLC.

 Eric,

I thought it was odd advise for a SFH as well. I didn't think about dscr loans. Who would be a lender I could trust for such a loan?

As for the conventional loan process, I already had them take out the apprasial for the property, and approved for this commercial loan for the property as well, is it to late to change to a conventional loan in my name and not lose out on that appraisal money?

Thank you for the advise, it is much appreciated!

I have a single family home under contract that would cashflow really well with a 30 year note, and the market interest rates, but unfortunately my local Credit Union is saying because it will be a rental that I will need to have a commercial loan instead of a traditional and it will end up being a 20 year note, which is fine for my cashflow if I rent out mid-term. But if I rent out long-term, (backup plan) it doesn't work at all...

What are the options for financing a single family rental under my LLC?

@Jason Wray

Jason,

As for my loan, I do not have anything in writing yet, I have been told my rate, assuming my offer would be accepted at $280k with a seller carry back of $80k, be 6.8% 5/1 arm, amortized 25 years (assuming I refinance at 5 yrs) for a commercial loan investment property non-owner occupied.