All Forum Posts by: Butch Greene

I'm not going to go back and read all the replies.

As an insurance broker, you need to keep in mind a Short Term Rental policies only work for you if written as protection for your BUSINESS.
As a BUSINESS, you need to have LOSS OF INCOME coverage.  

Homeowner's policies have Loss of Use. Still have to pay your mortgage when you have a fire or collapse from a tree, but Loss of Us on a home pays to put you up someplace you can live/cook/wash clothes.

Short Term Rentals are a business venture and you need to recoup INCOME LOSS if there is a covered loss on the property.  That's the key.

If your broker is saying SafeCo for the state you're in, you need to play "What if" and have them answer this question.  I tend to use ForeMost Choice here in NC.  They have a package policy specific to Short Term Rental, but it always varies state to state.

Just very confused on who we are supposed to work with to "qualify" to buy a property that in theory is paying for itself.
Prime Lending and Movement Mortgage just seem to be residential home lenders, not commercial investment property lenders.  
And...is there even a difference?
If we do numbers on a property that pays for itself....what does our personal income situation matter?  
We wouldn't be attempting to do this if our normal sources of income were covering our daughters educational needs & economic needs.

Feel like I'm asking the wrong questions to the wrong parties.

Tried to read up on DSCR just now but got a little too much lingo.
I'm great with math if there's an actual calculator? 

So when you say Fix & Flip, that the 12 month hard money loans for people with an LLC/business to lend to where the hard money lender wants to do a high interest 12 month rehab but you've got to get your approval for the final closing lined up before they sign off on the project?

So we just checked with Prime Lending & Movement Mortgage.
We've got a couple dings on credit that make us ineligible for the cookie cutter stuff.

What financing direction do we go now?
Pretty sure with new floors, fresh paint and maybe countertops, we can get it rented fully.

Friends property is a Townhome, not a condo.  We've never owned a townhome.
How does that change it?

From what little I know of condo's, going to stay far away from them at first.  Condos only seem to make sense if you've a big buffer of cash in the bank.

Another question would like feedback on is using property management vs handling ourselves.
Seems smarter to let a property management company handle the tenant if we're starting out. 

Friend lives in south Charlotte. Has a townhome they are wanting to sell within the next 6 months. 
Ones nearby of almost identical location & build (2 story) are going for $305k fully updated flooring and appliances.
Friends condo has the original carpet, pet stains, original paint, appliances and cabinetry.
Has new AC.
We don't have a ton of money to buy it. 
How do we figure out what we should offer for it? Don't want to shaft them at all.
Want to BRRR it.
Will they get the townhome sold for much more than we could offer?  Friend has no intentions of renovating.
Is there a way to determine (and present to them) what others buying in that market are going to offer?

How should we approach it?  Pretty sure friend has their original mortgage from the purchase when like new. 

 Already used it 5 times.  Numbers didn't pan out 5 times in a row.  So now....still at square 1.

I have a friend who owns tons of properties, but he's too busy to help me constantly try to find a property in Chapel Hill to buy for my daughter to house hack.  
And...I don't have the money right now to buy the "PRO" account, so I can't use the rent cost estimator.
So...yeah...I feel like a random guy who has listened to over a dozen of the Bigger Pockets podcasts and YouTube videos, tried to read anything of value on the forums and nothing.
I need steps A, B, C & D.  

Right now...my ability is to look at crap online and know nothing about what to do with it because the only thing anyone ever says is "If the math works..."  but I don't have access to the tools.  

.....

 Certainly interested.  The notifications on the site I'm trying to figure out.  Sorry...my inbox is packed full of things I try to ignore and this got overlooked.