All Forum Posts by: Daniel Blanco

Hi all, so I want to purchase my step dads home via seller finance, the goal is to utilize that properties equity to cash out refi and use those funds to purchase a small business... Would a traditional lender allow me to cash out refi knowing i have a first mortgage via SF? I hope I explained it properly. Thanks

1 Vote

Miami, Florida

Quote from @Eliott Elias:

Depends on what kind of creative finance. If you are taking over via subject to you will log in to the sellers mortgage account and make payments on their behalf and hold the deed in your name.

What if the seller doesn't hold a mortgage?

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Hey all, I'm new to REI, so I have a question regarding creative financing and more specifically FSBO. When setting up a deal, who holds the title? The seller? A title company? Other third party?

Once the deal is set up, Do I pay the seller directly, or through a third party processing company (ie Stripe, etc)?

This example is assuming the seller doesn't owe anything. Thanks in advance

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@Greg R. Wow, thanks for the break down! This is great information! We are considering switching over to LTR to stabilize our finances, pay off some debt and add value to the property (in-law quarters, pool, etc) We can always switch back over to STR once we get a little bit of stability.

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Quote from @Jason Maguire:

The house looks very sterile looking, almost like a hotel room with not a lot of detail. The pictures are also very grainy & not the clearest.

I think this is also a big reason to not buy a property purely based off what AirDnA says. Should of also been analyzing comps in the area beforehand along with their ADR + Occupancy rates based on their calendars...

I'd send the link to the listing in this thread & see if there is anything else that can be improved upon as well. Best of luck

Thanks @Jason Maguire, check out the link. Any help would be appreciated. .

https://www.airbnb.com/rooms/590964834631799448?guests=1&adults=1&s=67&unique_share_id=a2bdf952-31ea-4b41-bfae-d828a6134e73

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Quote from @Will F.:

Quote from @Leslie Anne Morris:

Miami is super competitive since there aren’t that many pockets where it’s zoned appropriately. It’s similar to Nashville. Your listing needs to be sparkling perfect. Pro photos are a must, all the options flexible / relaxed for Airbnb algorithm & then try some targeted ads.

Would you say more rural smaller town in general have a larger CoC or ROI than big cities? I have a few airbnbs in Long beach ca and they sound similar to this poster. Mine are definitely filled maybe 95% occupancy, but i have some sketchy guests or ones that bring more than they claim... It doesn't have a larger cashflow than LTR, maybe 20-30% after I calculate all of the expenses

For the OP @Daniel Blanco I think you have to take better pictures, and furnish your palce more, theres a lot of subjective things like how you respond to guests etc which will improve your ratings. It's not just comps. Whats the accessibility from street, parking, immediate hyper local neighborhood, condition of exterior, response time, appliances, cleanliness... just so many th ings, Also when your'e newer you have to gradually build up your score over years not just weeks/months

It seems people always anticipate higher ROI than expected first year. It's year 2-3 when you have many reviews and some repeat guests that it does better

I think we'd also have to look at your entire listing to legit give you opinion on the issues with vacancy

--could you give link?

@Will F.
https://www.airbnb.com/rooms/590964834631799448?guests=1&adults=1&s=67&unique_share_id=a2bdf952-31ea-4b41-bfae-d828a6134e73

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Quote from @Michael Baum:

Hey @Daniel Blanco. Well a D class neighborhood would be pretty crime ridden and run down. Does that describe your place?

Regarding the look, it is about as bland and Cream O' Wheat. You need to add some art, knick knacks etc. It screams "pass me over".

@Michael Baum Yeah, I would say c-.... LOL I hear ya, thanks for the insight.

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Quote from @Sergey A. Petrov:

Definitely get some professional pics. Before that, have it staged. Add some art work and other things that will make it spark. Hire someone for that as well if your brain doesn’t work that way (mine doesn’t so I always hire people who are way more creative than I am!)

@Sergey A. Petrov Thanks for the info! Yeah, my brain doesn't work that way either lol

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Quote from @Bruce Woodruff:

@Daniel Blanco From the photos (not very good by the way, get a pro) your place looks blah....make it warmer and cozier, more unique artwork and wall shwag.

You need to vette your guests more and better too...If you do Instant Book (which I do) make sure you DO NOT allow:

1) last minute bookings, all guests must book no sooner than 3 days out, this avoids kids looking for a place to party...

2) Short stays - all stays must be minimum 2 days

3) Anyone under 25, or on VRBO set it at 30 or 35

Try to get more bookings on VRBO, it is a much superior platform in terms of the quality of guests you will get....

If you want us to really pick this apart for you, give a link to the house..... :-)

@Bruce Woodruff Thanks for the detailed advise. I made the adjustments...

https://www.airbnb.com/rooms/590964834631799448?guests=1&adults=1&s=67&unique_share_id=d7ba50b4-522c-4214-bb0a-2e6cfbaff9fd

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Quote from @Greg R.:

Quote from @Daniel Blanco:

Hi there everyone, this will be my first post. So my wife and I have a rental property in an "up and coming area" of Miami. We've had inconsistent bookings on Airbnb and VRBO. The guest's that we do get generally get don't have reviews and we end up with terrible guests. Currently, our property isn't providing cash flow and we've actually had to come out of pocket for the mortgage/bills for the last two months... Any suggestions on what to do? How do we get consistent bookings as well as better guests? We've also considered switching over to mid and long term rental.

@John Underwood We used Airdna and we also did comps within our area. The Airdna for our property about 4.3k a month, our mortgage, bills, etc come out to roughly $3,100. We didn't hire a photographer or anyone professional but our photos look good and our place was recently renovated. We also up'd the price but ran into weekends where there were no bookings.

@Greg R. We do allow instant bookings... Yesss, we ran into the same issue with extra guests and parties. What do you do if someone violates the extra guest and no party rule? There are homes nearby with better decorations and such... I attached some photos, lmk what you think. We also have wifi and smart tvs in every room. I'll make the changes right now!

@Michael Baum How do i determine the class? I would assume its a "D" but idk for sure. Our property is centrally located. Just north of Design district in Miami. 10 mins from downtown. We have yet to get a guest on VRBO.

Thank you all! You've given me great advice!

Need some more info to determine if this is a good deal or not. How much is the mortgage and is your payment escrowed (include tax & insurance)? How much are you estimating for utilities and other expenses.

How much is your average nightly rate?

How much occupancy do you need every month to reach $4,300?

@Greg R.

Our mortgage with insurance and taxes comes out to $2,624. Utilities run around $300

Avg nightly rate has fluctuated because we've tinkered with it, lately I've used the suggested Airbnb rate. We would need to avg a nightly rate of approx. $170-175.

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All Forum Posts by: Daniel Blanco

Daniel Blanco has started 3 posts and replied 15 times.

Post: Seller Finance and refi options

Post: Who holds the title?

Post: Who holds the title?

Post: STR Occupancy and guest issues

Post: STR Occupancy and guest issues

Post: STR Occupancy and guest issues

Post: STR Occupancy and guest issues

Post: STR Occupancy and guest issues

Post: STR Occupancy and guest issues

Post: STR Occupancy and guest issues