All Forum Posts by: David Rutledge

Yes it does worry me a bit with how high the prices are getting but the numbers still work. 

Yeah it is so hard to beat the PF area. It has spoilt us....

Hi everyone,

I wanted to get some insight about some areas around the Smoky mountains specifically for STRs.My wife and I have 3 cabins in the Sevierville/PF/GAT area and they do extremely well. We love the area and want to buy 3 more in the next year or so. The issue we are finding at the moment is the prices and availability of the cabins we are looking for are very hard to come by(smaller one bedrooms or studios in the sub 350K range).

As much as we love the area we have been considering widening our net a little to other nearby areas that are perhaps at a biut of a lower price point. I have looked into Maggie Valley in NC but know very little about it. I would be interested to hear other investors experience in the area or any insight about the potential return we could be looking at.

The appeal of the TN side for us has been the fact that there seems to be demand year round, we literally have over 95% occupancy for all our cabins and are doing better than we ever imagined when we first purchased (hence the reason we want to build our portfolio in the area) It is these reasons that we are very reluctant to even think about moving to another area but I just wanted to do a little background digging to see if it may be worth further investigation. The current price point is tough to swallow right now.

Any insight for/against or other areas around the Smokys would be very much appreciated.

Thanks everyone.

David

Hi everyone,

I wanted to get some insight about some areas around the Smoky mountains specifically for STRs.My wife and I have 3 cabins in the Sevierville/PF/GAT area and they do extremely well. We love the area and want to buy 3 more in the next year or so. The issue we are finding at the moment is the prices and availability of the cabins we are looking for are very hard to come by(smaller one bedrooms or studios in the sub 350K range).

As much as we love the area we have been considering widening our net a little to other nearby areas that are perhaps at a biut of a lower price point. I have looked into Maggie Valley in NC but know very little about it. I would be interested to hear other investors experience in the area or any insight about the potential return we could be looking at.

The appeal of the TN side for us has been the fact that there seems to be demand year round, we literally have over 95% occupancy for all our cabins and are doing better than we ever imagined when we first purchased (hence the reason we want to build our portfolio in the area) It is these reasons that we are very reluctant to even think about moving to another area but I just wanted to do a little background digging to see if it may be worth further investigation. The current price point is tough to swallow right now.

Any insight for/against or other areas around the Smokys would be very much appreciated.

Thanks everyone.

David

Hi Everyone,

I was hoping to get some advice on any lenders I could talk to that have flexible debt to income ratios for new mortgages.

My wife and I have bought multiple investment properties over the past six years. 5 of them have been on my tax returns for 4 years all showing income so lenders give us a credit for those. The issue is the 2 properties we recently purchased out of state that we use as airbnbs. They have not been on our tax returns so we do not get credit for that income and they count as debt.

My wife and I are now looking to start a family and are looking to purchase our own home here in Orange County CA. We are looking in the 500K to 600K range. We both have excellent credit, we have 5% - 10% to put down and we both have W2 jobs with very stable and steady income. Our total mortgage payments from the two properties we recently purchased is about 2100K per month.

I have worked out that with those liabilities and our total income in order to get to that 600K price point we need a lender to lend us at at least 50% debt to income. I know the norm is not above 45% but that would not get us a high enough loan. I have heard about some lenders like Quicken loans that lend up to 50% and that some FHA loans can go even higher than that.

I have only purchased out of state investment properties up to this point with at least 20% down so the primary residence loan is new territory for me. I would like to speak to lenders that are known to have a higher than normal debt to income ratio to see if we can make something work. I am thinking community banks, credit unions etc.. may be the best bet? Or some lenders that are known to offer higher D to I limits for FHA loans.

Does anyone have any contacts or suggestions for lenders that do offer higher debt to income either for conventional or FHA. We would need lenders for the state of California or nationwide.

Thanks so much in advance for any advice.

David

Ah, sorry I re read your post. the 800 - 1K was the cost for the actual 1031.

Thanks for clarifying. 

Thanks Joe, the investment home is actually in NC but the primary home we are looking to purchase will be in OC in California.  

Thanks so much Bill that is really interesting. I have never done a 1031 before and tax certainly is not my strong point so having these kind of numbers in front of me helps me put it in perspective.

So if I am understanding correctly the actual amount I would be taxed on after taking out all other costs etc... would leave me with a tax liability of around 1K in this scenario?

Thanks again for your help.

David

Oh wow, very interesting, thanks for sharing Eric.

Congrats on the purchase! 

I have thought about that but I am not sure I will be able to get enough out to have a meaningful enough deposit for the next purchase. If I sell it I will likely take out around 80K if I refi I will probably not get more than 30K out.