All Forum Posts by: Daniel Purcell

Hello all,

I’m coming to write this to seek advice as to where to go from here. It’s a bit of a saga:

We bought a property in Sevierville, TN for roughly $500k through a construction loan. We put about $350k (100k in private money that needs to be paid back asap) into it. 2 different appraisals came back at 1.45 and 1.35 million. We gut renovated and put in high end finishes to make it a luxury STR (We are STR vets with a proven proof of concept). Three different DSCR programs said we could get 70-75% LTV. 680 credit score or higher. We've been 5 weeks at it now and one lender will do $825k at 12% and the others are pulling us around. We truly found a gem with 4 acres and a pond 10 minutes from the Parkway. Our real estate agent said we could get between $1.2-1.4 million.

We would prefer to keep the property and gross $12k-$15k/month and cash flow $2-$3k. Credit score has dipped to 680 from the 750 it was before this process. We’ve bought furnishings and some of the renovations on credit cards which have lowered the scores. These lenders seem to over promise and under deliver. They all can “get it done” but all of their underwriters want to give us nothing in terms of equity.

This is a special property and we can’t find a private investor to either give us a 30 year amortization with a balloon (2,5,10) at the appraised value or a private lender who can actually give us any equity without killing us on rate. The lender above was blue gate. The local TN ones want a 700 or above score. Obviously we’re going to pay the private $100k and cc debt off with the cash out refi while still having cash reserves. All the numbers work on our end.

Any advice/guidance would be much appreciated.

Thanks Everyone!

@Eliott Elias

Best answer yet

@Mike Hern

With all due respect this is a generalization. Majority of my STR's are in NOLA and cash flow very well. We also bring quality and treat the ones we own as a business. We have cleaners and managers that walk through the properties after every stay. We do our best to create a safe, clean, and great experience. We also are working on QR codes that guests can follow for discounts at nearby restaurants or codes that lead to videos of us explaining why we did things and the process go doing so.

I understand cities have issues, New Orleans being one of them, but there are great areas to STR. If you're smart and live by location it is a great experience.

@Unai La Salle

I’m late to the party but would be more than happy to help! We manage properties uptown and mid-city

@Amanda Vu sure I’ll send you a message!

@Braden Smith

Can second that...used him before

@John Underwood

Not all of us are infected nor still have left over beads. We recycled ours already. :)

@Jay Hinrichs

I was hit with 14 cancellations dating all the way into June. Airbnb is letting everyone out.

Here’s the slimy thing....they try to give the renter the money from the owner back, but tell the renter that the fees can’t be refunded. So as a platform they are screwing both sides they are servicing. It is not backing the hosts and it’s not backing the guests. Airbnb conveniently and commonly tells guests to take the fees and nightly rates up with the hosts and that the hosts has the money and to repay them directly. Multiple times the guests have said Airbnb says the host takes the fees not Airbnb.

They’re the worst kind we are using.

@Lucas Carl

If I could vote this 100 times I would

Yes sir! Closed with no issues!