All Forum Posts by: Bobby Feinman

WOW...what at AWESOME post. I grew up in "the Burg"! Still have family there and visit often. Live in VA Beach now. Let me know if I can assist.

Kevin

Lots of great responses and input already shared on this thread. One thing I would add against pooling properties into one loan (portfolio loan) is that they will be cross-collateralized and the properties will not "stand on their own" independent of other properties. The potential danger here is that you never know what the future holds and if you get into trouble on one or a few properties, it can put the entire portfolio at risk. 

To me, the extra cost and inconvenience of separate closings is worth it!. 

Hey Dillon

I live in VA Beach, right down the street!

I am no tax expert lol. However, can your strategy work if all properties were purchased in separate entities? I DO NOT recommend holding multiple properties long term in the same entity. You don't want a scenario where a small number of properties that are not performing could put the entire portfolio at risk.

Bobby

There is long-term financing available for STR properties. BRRRR is the way to go!

have you considered monthly furnished rentals? This is a VERY lucrative market. Corporate rentals, travel nurses, government and military contractors, etc.

Keith - Congrats on the new construction deal. Where in NOVA is it?

what is the cost of the hard money loan? you might be better off putting 20% down and getting a 12 month fix to rent loan and then refinancing with a 30 year rental loan. 

Bobby

Hey Warner. GO Chiefs first of all! With respect to your dilemma, here is a strategy that I have used with several clients that will solve your problem. It's a form of BRRRR

1)  Find a property that will appraise for more than the purchase price. 

2) Find a reputable hard money lender to fund the deal with little to no cash out of pocket. You will pay a premium for this but that's ok because it solves your problem.

3) Start generating income for 2-3 months

4) Refinance with a 30 year loan. The is long-term funding available for STR properties that will refinance up to 80% of the appraised value.

Hope this helps!

Bobby

Neil

There are loans available for you to refinance that do not look at your income and liquidity.