All Forum Posts by: Carolyn L Delli Santi

I am considering an FHA loan and House Hacking a property. Only issue is that the 3.5% down payment plus the monthly PMI bring the monthly payments way up, vs a loan with a 20% DP and no PMI where payments are much lower. Am I missing something here? TYI

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I would love to connect with anyone who is investing in this area. It seems that prices are still quite reasonable and rents are good. I'm considering a Row/Townhouse in the downtown area for either a LTR or STR. I may House Hack it the first year. I would love some feedback! TIA.

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Quote from @Nicholas L.:

This is going to come down to YOUR goals. We can't tell you whether or not to buy a fixer upper, or an LTR, or a STR... you have to decide what you want.

You should only buy an STR if you want to own and operate an STR... not because you don't want to do a rehab. And just because something is in good condition doesn't mean it would be a good STR...

BP had a recent podcast on this topic with great guidance from Avery Carl. Take a listen and see what you think. It was "On the Market" episode 129.

And... a good STR should rent for way more than 1% of the PP on a monthly basis.

(I'm not an STR investor myself)

Hi Nicholas, Thanks for the feedback! I will definitely check out the podcast.

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Phoenix, Arizona

Quote from @Michael Baum:

Hey @Carolyn L Delli Santi, before you jump in, take some time to look at AirBNB and VRBO in the Joshua Tree area.

There are a TON of rentals there and many folks on here are reporting they can't make their mortgages let alone a profit due to the sheer number of rentals and the overall downturn in occupancy in the area.

A lot of folks bought in JT in the last 2 years that are losing their shirts due to the high interest rates and record purchase prices.

Hi Michael, Thanks for the feedback. I agree, during COVID it was booming, but now it has slowed down.

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Phoenix, Arizona

Quote from @Andy Brohard:

Hey @Carolyn L Delli Santi

29Palms is interesting because there are two different jurisdictions. First is the city, which has a cap on STRs in place (and I'm 99% sure they're at max capacity) and the second is the county which as of right now, hasn't established a cap (although they keep threatening to put one in) so you want to make sure you know which one the property lands in.

I've got a few STRs in that area and happy to chat through some of it. Occupancy rates for a lot of owners have cratered. A lot of them were also underwriting high ADR and low expenses which isn't really the case out there for utilities, saturation etc.

Hi Andy,

Thanks for the input. I called the city of 29 palms a couple of days ago and they said that at the moment there are 23 STR permits available. I agree the market does seem to be saturated with rentals. My gut tells me it's best to buy a fixer at a low price and rehab, but I've heard that there is an issue with finding labor and building costs out there so the project could take months and end up costing more than planned. There may be an opportunity for LTR but I am wary of California tenant laws. I think I will move on from the area and start looking in another state with more opportunities. Thanks!

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Phoenix, Arizona

Quote from @Zachary Ware:

There's no problem with buying a turnkey property and it has alot of benefits. Like you mentioned you know exactly what you are paying for it verus having a estimate for a rehab. This will help you while UW the deal. If the deal pencils and hits your desired returns, go for it.

A STR is definitely more work than a LTR and there are risks involved with changing STR regulations. Make sure you know the local regulations well and try to find out what way these regulations are trending.

Thanks Zachary for the feedback!

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Phoenix, Arizona

Quote from @Dave Stokley:

Quote from @Peter Mckernan:

Quote from @Carolyn L Delli Santi:

Hi Everyone! I am strategizing my first investment and am tempted to buy a property through an agent for a STR. The home is already rehabbed and ready to go. There are many opportunities in the area for fix and hold, but my son already owns a dozen rental income properties in the city and the last one took him ten months to rehabbed because of labor shortages and supply chain issues. My son also has a property management company and believes the home will rent ST for at least 1% of the PP. I know I will be spending much less on a fixer, but I don't want to have to deal with the unknown costs and timing of a rehab. Thank you for your feedback!

I would double check numbers with that agent and a couple other ones (some that have STRs/manage STRs) in the PHX area. This is because the numbers are lower than they use to be (lower than the last two years) and also the inventory for STRs in PHX is a lot higher which puts a decrease on how much you can get for your STR per night.

I didn't realize this was in Phoenix. I'd be super nervous about buying an STR there unless it was a truly special property, or you had plans to make it one.

This would be in Twentynine palms, CA not Phoenix. Near Joshua Tree national park

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Phoenix, Arizona

Thank you for the feedback!

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Phoenix, Arizona

Quote from @Nicholas L.:

This is going to come down to YOUR goals. We can't tell you whether or not to buy a fixer upper, or an LTR, or a STR... you have to decide what you want.

You should only buy an STR if you want to own and operate an STR... not because you don't want to do a rehab. And just because something is in good condition doesn't mean it would be a good STR...

BP had a recent podcast on this topic with great guidance from Avery Carl. Take a listen and see what you think. It was "On the Market" episode 129.

And... a good STR should rent for way more than 1% of the PP on a monthly basis.

(I'm not an STR investor myself)

0 Votes

Phoenix, Arizona

All Forum Posts by: Carolyn L Delli Santi

Carolyn L Delli Santi has started 4 posts and replied 12 times.

Post: House Hacking with an FHA loan

Post: House Hacking with an FHA loan

Post: Any investors in Lancaster PA?

Post: Tempted to buy a rehabbed home on Zillow

Post: Tempted to buy a rehabbed home on Zillow

Post: Tempted to buy a rehabbed home on Zillow

Post: Tempted to buy a rehabbed home on Zillow

Post: Tempted to buy a rehabbed home on Zillow

Post: Tempted to buy a rehabbed home on Zillow

Post: Tempted to buy a rehabbed home on Zillow