All Forum Posts by: Daniel Millner

Hey I have a few properties I have had my eyes on that are 10 acres and up around Michigan. Each property has a house that needs to be fixed up before its usable as a rental. Issue is the hard money lender I used in the past (Lima One) does not allow lending on properties with more than 2 acres unless thats the norm for the area. 

The end goal is to make multiple small structures for STR and do some land improvement like adding a large pond/ small lake to the property.

I COULD put 25% down and go conventional but that takes out of the reserve funds I would rather have. 

Since I have only done VA/FHA/cash out loans is there a world where I could do 5-10% down conventional or possibly another hard money lender that takes the full scope of the project into consideration?

 Yeah I knew people would be scared by the potential of the liability. We talked with a lawyer and they assisted in waiving liability and the renter has to have their own insurance to be able to use it. The boat itself is covered by our own insurance as well. All pretty simple stuff and there are boat rentals all over the place in Michigan given all the lakes.

That makes sense and thats basically what I thought as well. I just figured I would ask. In my situation I will have a boat rental which for the area is around $500/day so the house is included plus the boat for the same price. Insurance and everything is covered by a third party, but its one of those things that makes me wonder how much I should increase my base price as I add more items to the property. I suppose I will just have to wing it if there is no hard and fast rule.

Hello all!

Im out of the Michigan area and have been doing flips/ BRRRRs the last 3 years and Im finally getting my first STR going. I have seen many people talk about a hot tub is $50, but how are people estimating these increases? Is it just a best guess or based on some other data set? I get this can be done if that amenity is available at another location and they show a history of a higher ADR, but if the data is not there is there a rule of thumb to test the waters with?

If you have them post them below!