All Forum Posts by: Dan Aharon

Hi folks!

I am building a vacation rental from scratch in what is going to be a 2-year project in the Miami,  FL area.

I have bank lending secured for the construction, but I expect to end up spending ~$500k above the loan amount when all things are considered (including soft costs, landscaping, furniture).

I was wondering whether anyone has experience with getting SBA funding for vacation rentals as a business? 

I know that normally SBA loans can't be used for rental properties, but not sure what the rules are for vacation rentals as I won't exactly have an ongoing tenant and it's more run like a business. I own a few other VRs so can potentially make the case that additional spending (for furniture, landscaping, etc.) is needed to build this new business.

Has anyone tried that before? Any idea if that will work?

Hi,

I am interested in understanding my options for accountant services for 2022 Taxes (that will be filed early next year) as well as Tax Planning. I have 5 properties spread across California, Arizona, Florida and one of them is held through an Opportunity Zone Fund that I created and own. Are there any accountants here that would be interested to provide a quote and/or are there any referrals / professionals you'd recommend that I reach out to? Looking for someone that is familiar with all of the ways to save on taxes (cost segs, short-term rental mechanics, opportunity zone) and hopefully won't break the bank as I'm new in Real-Estate and don't have a large portfolio yet.

Thanks!

Dan

I'm looking for some advice on how to structure real-estate transactions in the Miami area to make sure they qualify for QOZB tax benefits.

Does anyone know a lawyer that might be able to help?

Hi folks,

I am looking for a construction loan for what will be our primary residence in greater Miami, FL (we may convert it to an investment property later on down the line but will live in it first) and I'm right now looking at Income Qualifying / W2 loans.

The environment seems pretty tight with many banks no longer doing construction loans, but I've gotten a few good offers for interest rates around 3.5-4.7% with no points and minimal fees. This is a lot better than what I expected, so I'm quite thrilled! But that being said, I am not sure I'll fully qualify (have a lot of assets so the picture is complicated) and so I was hoping that you all might have additional leads I could look into. Not interested in private loans that are 8%+ rates and/or with points at this point (though that would be the backup plan if I can't find any conventional loans). Any ideas?

p.s. in the spirit of helping others that might be looking for similar loans as well, the leading ones I'm talking to right now are Space Coast Credit Union, GTE, Truist, and Federal Savings Bank (Upen Patel from this forum who is really awesome).

Thanks in advance for the help!

Dan

Hi folks!

I recently bought a property in Palm Springs that is meant for Short-Term Rental. The house is currently valued at ~$1.5M but we plan to spend ~$500k on renovation and expect it's value to go up to $2-2.5M after it's all done.

There is ~$1.05M loan balance on our 2.25% 30-year fixed-rate mortgage which we don't want to touch (would be hard to get those rates these days) - but we are looking for ways to finance the $500k renovation without too much out of pocket cash and without refinancing.

I've heard about second mortgages / HELOC that could offer variable or fixed rate loans. Most banks look at the "as is" appraisal for LTV calcs but I've found at least one broker (Renofi) that works with appraisals based on architect drawings to produce LTVs. The downside is that the rate is a bit higher - 5-5.5% adjustable interest rate. If we go with Renofi, we'd probably want to refinance after the renovation is done into a "standard HELOC" with a standard bank based on a standard appraisal and maybe get a lower (and fixed) rate.

A few questions for you all -

1) Has anyone worked with Renofi and have any experiences (good/bad) to share?

2) What are typical rates for HELOCs these days (ideally fixed and/or interest only)? Are you getting substantially lower than 5%?

3) Any recommendations on the best way to move forward in my case?
 

Thanks,

Dan

Hi, I recently opened an LLC and am looking for a professional that can provide tax advice on real-estate investing.

We have two properties in California, one in Arizona, one in South Carolina, and are potentially looking to expand in Texas/Flordia.

We are planning some renovations and purchases (appliances, furniture, etc.) and would like to understand how to plan it in a way that would maximize our tax deductions. I've heard there are some nuances on repairs vs. improvements as well as the section 179 option.

Is there anyone that you'd recommend, that is not too expensive given that we're just starting out?

Thanks,

Dan

Thanks, Mary! Have the cash reserves and yes this is for SFRs.

Will do some Googling.

I'm considering buying a 25-unit portfolio in Detroit, MI of houses - with value per unit starting at $30k and going up to $150k.

Has anyone had good experiences with a lender that can take a portfolio approach and offer a competitive rate?