All Forum Posts by: Drew Gelinas

This is a very valid point, I supposed with my LTR's I do post addresses, just typically gated by a trusted real estate agent to sort for valid options. Just removing a layer of filtering on this for my STR was the main concern. It does seem like it is not super uncommon, so I will make sure to vet this a bit more aggressively and proceed with caution. Appreciate the insight!

I have a STR that we use which is waterfront and has high peak seasonal cost in the summer. We had someone reach out looking to see if we would be interested in a 6 month rental from an insurance company that they would potentially have someone stay for 6 months, with then 30 day notice month to month tenant at will if construction isn't finished in time.

They mentioned working with insurance agencies and shows on Airbnb he has multiple reviews and properties, but that he had a contact reach out in my area where he doesn't have rentals.  Asked for a blended cost of rates I would be happy with for 6 months based on monthly rate.  He also asked for address of the paperwork, and that if accepted by the insurance company, the renters would have background, damage deposit and would do a walkthrough of the property to make sure they liked it.

Any concerns around giving out my STR address, and has anyone done something similar before? Curious if I should be on the lookout for anything not above board with the process.

Thanks!

I currently have a large ~3 acre waterfront lot that has a 2 unit home (with separate utilities on it), being used as an Airbnb. The area it is in has an opportunity to have strong cash flow on long term rental with less headache, but would still leave a large open lot closer to the water. We are looking to build a smaller home that will qualify as an ADU (to avoid subdividing process) and Airbnb out the new build.

the main challenge is we have a 3.5% interest rate in the main house with the land, so want to avoid refinancing to a far higher rate rate for 2 properties, as that will bring monthly expenses far higher. We can't fully cover cost of new build with HELOC, but if we can get a decent rate we could get great Airbnb cash flow. Thought about hard money but given that I would still never be able to ditch it without eliminating our 3.5 rate and cash flow of existing property, doesn't seem to be a best bet.


curious if there are any expert lenders out there who may have a creative solution I haven’t thought of, to get the second building built on the lot without affecting loan and rate in place of current building.

Thanks All!

Thank you for the info!

 I know the main avoidance of risk that I was aware of is on assuming a mortgage you don’t accept any liability of the previous owner financially.  Generally with Subject to, if seller were to declare bankruptcy, you lose all equity/ownership of the property, correct?     Or is there a way to structure to eliminate any impact of the existing seller?

I know traditionally there are only FHA purchases that can be made if for a primary residence/owner occupied. Are there any workarounds on assuming FHA loan and using as rental, or do the same restrictions apply? Looking to see if lower interest rates can be taken advantage of to cash flow.