All Forum Posts by: Chris Rowland

I'm new here and new to this 'game' but have lived in Destin for 15+ years. I'd be interested in hearing more of the STR vs LTR strategies; i'm not ready to play in the 1M arena just yet, but 500K sure -- been looking at multifam around for that price range, but now you have me thinking of maybe STR instead becuase there are certainly A TON of options vs MF.

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Originally posted by @John Teachout:

Hmmm, I wasn't aware that someone could have a loan on just part of a building. That's a new one to me. I'm not sure what a foreclosure looks like in this instance from the lender's angle. Maybe similar to a condo?

Maybe I misspoke - I think i've moved on from this despite the good numbers. Although I really like the mention of another post (sorry I can't see it and not time to go back right now to @ you, but thanks! LOL) about if you were 20 yo, would you live there.

However, John - this case would be (and others) where there are 7 attached, but 4 would be under a VA loan (max 4 units, must be attached) and the other 3 would be separate conventional mortgage.

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Originally posted by @Christen G.:

I second the, "do you feel safe" versus "would you live there" statement. Also, think about, "would you live there" if you were 23 and working at Starbucks/A bar/Gamestop or whatever? I certainly own rentals that I wouldn't currently live in, but would have at 22 when I was just getting my feet under me. Lending restrictions in the time of the 'Rona have tightened up for sure. Be prepared for 30% down and as others said - have a lot of reserves. Mostly, get to talking to a few lenders and see what they're saying. I've heard, "find out what the tenants do for a living" - which - if you can get it, is helpful intel. The only other thing I'll add is to get the Trailing 12 and Utility statements from the seller - you'll want to make sure there are no delinquent tenants who aren't paying rent and can't be evicted b/c of rent moratoriums all over. And Utility statements can help you pull more accurate numbers together. Best of luck!

Thanks for the input.

What is 'the trailing 12"?

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@Bjorn Ahlblad

I hope so haha

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@John Teachout

Am I allowed to interview tenants or talk with them during due diligence?

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Originally posted by @Mike McCarthy:

A) People need a place to live. There may be a recession, there may be unemployment, but people still need somewhere to stay. Also, most landlords have said tenants are paying, despite what the news might be saying. Of course, no one has a crystal ball.

B) You say you wouldn't live there... my criteria is whether I feel safe there. Though it might not be up my alley, as long as I'm happy to walk in the neighborhood, I'm good to invest there.

Good luck!

Great way to look at it. thank you

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@Bjorn

@Bjorn Ahlblad

Thank you and I appreciate the insight! I will be doing a VA loan with 4 of them and a conventional on the other 3 (all 7 units are attached). What is 12 months reserves in this case? I know the reserves in the COC ROI at 1% which is not an issue, but I think i'm off there haha. all units are currently rented and tenants have been there 2-5 years on average. I don't know about vacancy rates but good to know on that! i'm currently working w/ the lender and waiting to get a preapproval for around 600K total.

The current owner is a builder and want to lighten his load, planning to build new homes on the lot directly connected to "mine".

Thanks again!

1 Vote

All Forum Posts by: Chris Rowland

Chris Rowland has started 3 posts and replied 31 times.

Post: Destin FL Luxury STR Advice

Post: Destin FL Luxury STR Advice

Post: Destin FL Luxury STR Advice

Post: Destin FL Luxury STR Advice

Post: Need advice on 7 unit offer - class b/c?

Post: Need advice on 7 unit offer - class b/c?

Post: Need advice on 7 unit offer - class b/c?

Post: Need advice on 7 unit offer - class b/c?

Post: Need advice on 7 unit offer - class b/c?

Post: Need advice on 7 unit offer - class b/c?