All Forum Posts by: Cindy Coker

@Sean Harris

Unless the tax rules have changed, it can be tricky to rent AND extensively use a place personally.

If you carry a mortgage and want to deduct interest on it as a second home, you’re allowed to rent it 14nights a year - or the interest and property tax deduction may be disallowed.

On the other hand, if it is rented regularly as an investment property, you are allowed 14nights use per year for yourself or friends/family - or the investment depreciation and expenses may be disallowed.

The IRS seems to try to box it in so folks can’t as easily have their cake and eat it too.

Yes, I think so. We are both engineers. I think it is helpful because in our careers we were well versed in risk management, as well as a broad swath of technical issues.

@Cameron Calvert - Cool, Cameron! Thanks for updating us on your thinking. Best wishes for the next deal to be a super good plan for you!

@Cameron Calvert

We have had a duplex in N Avl since 2014, that we Fully renovated and rented one side as a 30day furnished rental on vrbo, and the otherside longterm.

I would also be Very concerned that I26 work may be a detriment to the gross AirBnB rental picture the sellers are putting out there. Would be happy to look at their listings and offer comments, should you have them handy.

Our’s is going to go longterm on both sides, perhaps by summer. Before we removed furnishings this past Fall, we ended up with a delightful travel nurse who wants to stay a few more months.

Personally, I would want the margin to house hack it with longterm rent as a viable option, not only be dependent on vacay business to make the deal work. There’s no room for you to retreat, if longterm is not doable. If it IS doable, then vacay guests would be gravy cash flow. This makes me cautious for you...

Robert Ombres - 

I'd have to look back over our reservations, but We've had, I think 7 individuals or couples stay with us 1-4 months, while they were looking to buy, or finishing a newly purchased home's renovation before moving in. We've had FL folks escape the heat for 1-3 months, and this past winter, had guests stay in town Dec-Feb, rather than on their mountaintop home 30minutes away. There is demand, but it is a different game than weekends or a week at a STR. They are harder to find.

Cindy

We have had a 30day furnished rental (one side of our rental duplex) in N Asheville since Sept 2014. Running about $2200-2600 a month. We've averaged 8-10 months occupied since.  built a website using VacationSoup (.com) website template a little over a year ago, to try to shake free of VRBO, but hadn't quite gotten free of their business model. 

We currently have 3month guests leaving end of September, who'd love to come back and book it next summer, but we have decided to remove the furnishings and go longterm on both sides. NOT because it hasn't worked well, but to simplify in order to concentrate on a different small business startup. With the other 8-10monthds occupancy, with us paying for cable, internet, and power, we'll net nearly the same with it unfurnished, and rented for $1450 or so.

I will say that inquiries have dropped significantly since Expedia bought VRBO, and started interfering with Owner to Guest communications and added service fees. And rumor has it, VRBO will start doing as AirBnB, and paying Owners after checkin, rather than when Guests pay (sometimes a year before arriving). For STR's that may work alright, but for 30day Vacation Rentals, I would find that unacceptable.

Let me know if y'all have any questions I can help with.

Cindy 

@Rebecca Helm hi Rebecca. Where is the duplex you’re considering? Ours is a mile from UNCA, so I think not far away. A street name might help with the neighborhood aspect of valuation. Asheville’s market is interesting to say the least!

@Jon Arsenault hey Jon, we have a N Avl duplex on Hy Vu above Merrimon. Where is yours downtown?

Thanks y'all.

A group of us are looking at ponying up $50k each, or so, for a friend to buy, fix, flip a tired but rescuable As-Is house in a sweet spot. He's done 20+ of these, including working with a few of us on our own projects in between his own. 

Looking at each investor putting up cash, with an agreement that he pay back with interest when sold, in 12-18months. No question that that is doable, but what paperwork should be executed to establish good clarity for investors? 

It's kinda like a teeny syndication, or semi-hard money lending. Are there agreement templates you guys can recommend?

Thanks much,

Cindy Coker

Asheville NC