All Forum Posts by: Dean Dutro

@Joe Kim hey love this story and very inspired by it!

I like the idea of leasing to STR...how do you negotiate this with your landlords? Do you tell them ahead of time? These are all on houses and not in large apartment complexes?

I just purchased my first STR in one of my favorite cities 3 months- and my goal is to have 10 units across the USA in different areas that I love to visit- acting as my own vacation homes when I want to go somewhere for Skiing, or hit the beach, etc. 

Also, do you have any strategies or advice for when slow season hits? 

I noticed my Gross drop dramatically in November- while Sept-October were great. Can't wait for the next post! 

@Natalie Kolodij From what I recall they looked at my Gross Income for the last year, then averaged it out over 2 years. 

Hey Rich,

I am self employed with no W2, and it was pretty rough trying to get a traditional loan on my first rental as I had been under the 2 year mark. And it was a non-warrantable condo. 

Traditional banks wouldn't even talk to me really- so I ended up calling multiple brokers in my town over and over until I found one who really believed in what I was doing. 

He set me up with a Portfolio loan I believe.

On this loan they averaged out my last year of Business Income over 2 years to get a rough estimate, or alternative income verification- they also looked at my savings, stocks, IRA, other assets, and debt. 

I also had to have a cosigner who is a part owner in the property. ( It was my mother ). 

So it ended up being a 30/yr loan, with 15% down, and 5% interest. However, the contract let's me refinance the loan once I hit the 2 year mark under my own name, with no refinance costs. 

So it took about 20 phone calls before I was able to find someone. Also learned a bit about the condo buying game and non-warrantable condos. 

Investment Info:

Single-family residence buy & hold investment in Bend.

Purchase price: $192,000
Cash invested: $39,000

1 Bedroom, 2 Bath Condo.

Originally was a hotel, and the hotel rooms were converted into Condos.
Currently on Airbnb

What made you interested in investing in this type of deal?

I liked the idea of having a condo in a place I love to visit, and a place that has seasonal outdoor recreation.

How did you find this deal and how did you negotiate it?

Found it on a realtors Instagram feed. It was an offer, counter offer, counter deal. Started at 200k.

How did you finance this deal?

I saved up for 15% down.

How did you add value to the deal?

There were other unites that were cash-flowing 20k/year ( about 1666 a month on average), that sold for 200k.
The mortgage, insurance, HOA, remodel costs and other costs end up being 1300/month. Average cashflow is 350 a month, with some months being huge in summer.

What was the outcome?

I remodeled the condo, and put it on Airbnb. I am a superhost and average 350/month in Cashflow for the first 7 months of bookings.

Lessons learned? Challenges?

I am self employed, so originally it was tough to go through a bank. I ended up calling about 10-15 different lenders, brokers, banks etc., before someone one fund the deal.

Time to remodel- this took about 4 weeks longer than I expected, but I was doing most of the work.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, a great Realtor, and Broker.