All Forum Posts by: Buck Dabill

I have a property that I purchased in ND over a year ago with the intent to make it into our first STR. We have been working on it as we have the money and time, but at this point we want to just get it done as quickly as possible. I am looking for recommendations on where to look for this financing? We would need about 75K to finish this project. Any input would be greatly appreciated!

 Thankyou

 thankyou very much!!!

 Thankyou very much for taking the time to give me your feedback!

I have bought my first STR and i am in the process of setting it up...my specific question at the moment is what software/aps do you all use to run your STRs. It would be great to get an exhaustive list of software that you rely on. Even the apps that you use once in a while for small things...thanks in advance for all your input it is really appreciated!

I have purchased 6 properties in the last few years and held them as long term rentals. I purchase the properties and fix them up using a line of credit and then refinance them paying off the credit line. I bought a property for 45k and fixed it up for 100k, so i am into it for 145k. I have only worked with one bank on all of my deals. This Bank is saying I do not have enough equity left in the property to refinance a mortgage for 145K and get my 100k line of credit back to use on the next project. The property is worth 300k. They are saying because the property is a rental they only use a cap rate to define its worth not what it could sell for so they are only giving it a worth of 109k. Do all banks value single family properties this way? I should add it is currently renting at 1,550. I have 6 properties that have a total value of 960k if I were to sell them, but they are only saying they are worth 688k in their book. They will lend up to 75% of the 688k which is 516k. My most pressing issue is a property I just bought for 256k that I need 50k in order to fix up so I can turn it into my first STR. I would appreciate any advice you might be willing to give on my situation.

So, I have been looking at buying this old hotel on 1.06 acres, which has not been used for 30 years, and turning it into apartments. But, the remodel numbers are coming in at 900k for 12,445.0 sq ft of remodeled space.  The old hotel is all on one level. It has been suggested it may be Cheaper to build new apartments.  What would be the most efficient way to find the cost to build new apartments in eastern Montana? Is there a sq ft number that would give me a good idea to start off with? Any advice would be deeply appreciated, Even other ideas of what to do with the property.  We will most likely purchase it for 30k give or take.  

Say I buy a rental and 27.5 years later there is no more depreciation.  What do the taxes look like at this point? And if I completely tear down and rebuild on year 27.5 does it all start over?  

@Mike Smith Thankyou for your thoughts, I know your time is very valuable so thankyou for taking the time to offer me your insight. It is deeply appreciated! I am coming to the conclusion that you are right, "not enough meat on the bones", and not worth the risk. I am now turning to look at building new apartments and or a storage facility on that lot after tearing it down.