All Forum Posts by: Damon Aniton

 At this point I am honestly convinced that arbitrage is the death nail to AirBnB in most cities.

The real stories right now are New York, Dallas, Austin and New Orleans.  With cities like Atlanta and many others soon to follow.

Arbitrage I think is the biggest factor in many cities forcing STR out. Operators coming in and renting out entire buildings, yes entire buildings, to arbitrage as an STR.

My guess over the next few years is being stuck with a rental unit you have to pay for out of pocket for the better part of a year as a worse case scenario.

I purchased a duplex in January with the thought of renting 1 unit as an LTR and making the 2nd unit as an STR to cover the difference but still be able to stay in the property when I come in town. Thinking/expecting that by March they would start issuing permits again.

I kept the unit for fun and going back and forth through about June. It became evident then the city was going to ******** their way through this process for an unknown amount of time. At that point I made a pivot. Even as a regular rental I would make a good amount of money over my PITI so I said screw it.

What ended up happening was I got it rented as partially furnished with utilities for $2800.  Fast forward that seems to be what more and more STR hosts are doing.  Not sure if they are renting but I see more and more furnished rentals pop up for that $2800 mark.  I think this will work out for a small number of owners but fizzle out fast.

The rest will be left holding the bag.  They will either sell or convert to regular rentals for much less monthly profit.

Anyone building their own new construction as opposed to buying existing properties?  I am leaning this route for my next property.

If your local market does not fit your needs than absolutely.  That is what I did with my first property earlier this year.

479k @6.188% so right now total PITI is $3773

So give or take which loan I refinance to I am looking at 15-23k to get the LTV to a ratio that works for refinancing. This number can either be considerably less than 20% down on a 2nd loan or it might actually be worth the hassle.

This is also several months down the line, aka end of the year.  So the rates at that time will be a complete mystery.

What loan limit is it time to consider refinancing out of a VA loan?

By the end of the year I would be at the 1 year mark on my first multifamily purchase and am in the planning process for my next purchase.  I do know that I have some eligibility left for another primary home purchase and that if I go over that I would have a down payment of anything over that number.  If my calculations are correct I believe it is right at $247k.  Which is fine.

What I am wondering is if it makes more sense to make extra principle payments to drive my loan balance down to X% and refinance out and then just have a fully restored VA loan eligibility.

Residential multifamily is simply not a thing for the Atlanta metro area.  I went outside to New Orleans to get what I wanted.

I picked up a new construction 6 bed 6 bath duplex. 3 up and down and each bedroom has a bathroom. Purchased at 479k for 6.118%. PITI is $3779. 1 unit rented to section 8 for $2250 and the 2nd unit rented to grad students for $2800.

I will be looking to pick up property 2 at the end of the year.  Meanwhile I just rent in Atlanta.

The critical flaw in your plan is that they dont have many multifamily properties in the Atlanta metro area.  I purchased out of state for this exact reason.

You did what most dont ever do.  You got 1.

Congrats