All Forum Posts by: Cody Barna

@Alec Khlebopros no worries, good luck with everything.

@Alec Khlebopros considering that she has already been in the property for over a year, assuming she was a good tenant. I would let her break the lease and move on, it's not worth the potential headaches of subleasing the unit. If you own any larger properties in that area it could be a good opportunity to show her those. Worse case scenario you're able to keep a portion of her security deposit depending on your local laws. Are three year leases common in your area?

@Evan Zelkovich Nice, it sounds like you're taking all of the right steps to set yourself up for the next deal. Good luck with everything!

@Evan Zelkovich How did the BRRRR turn out in the end? Usually if the deal was good enough you'll be able to pull almost all of your initial down payment out. Besides continuing to save a large portion of your income, you could also explore other ways to increase that through may different avenues.

@Rob Bianco I think it sounds like a solid plan, especially since interest rates are very low. If you're able to get an interest rate at or around 3% giving you the ability to pull out a substantial amount of money, that you can then use to purchase more properties. How much did it cost you to renovate the property?

Based on the research I've done regarding short term rentals, it seems like most owners recommend using a pricing tool to effectively reduce vacanies.This makes sense considering the high price fluctuations STR usually have. For example your space could be renting for $80 per night one week, then a big event that weekend allows rates to increase by $40 per night. If you're not actively managing that unit this could greatly effect your overall returns in a years time frame.

@Roderick Angay I don't see why you would have any issues doing that, considering you're able to meet all of the lenders requirements.

@Matt Amundson that's great you shouldn't have any issues since it was your primary residents for over 2 years. If you're single you can claim up to $250k or $500k if you're married. If you've owned it for 5 years and you're still not seeing the appreciation or occupancy that you want, it might be a good idea to look into multifamilies or other SFH in a more desirable area. Whether or not you use a 1031 won't make a huge difference since the gains are tax free either way, however I would recommend speaking with a tax professional for more details.

@Matt Amundson congrats on your first deal! I would hold onto it long term as a rental or if it's your personal residents wait until the end of year two to avoid paying capital gains tax.

@Kyle Abramov You can absolutely purchase a property with less than 20% down. Traditionally an FHA loan only requires 3.5% down and I've even heard of some individuals getting 5% down conventional loans. However most lenders will require 15-20% for a conventional loan if you're purchasing a multifamily. Now when it comes to cash flow it's definitely possible to find a deal that still generates income despite using an FHA loan. If you plan on putting less than 20% down you will need to factor in PMI (private mortgage insurance) that generally cost a few hundred extra per month. At the end of the day if you can find a deal that fits your criteria and at worst breaks even every month, I still look at that as a win. There's a lot more benefits to owning rentals properties than solely cash flow.