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All Forum Posts by: Eddie Hincewicz

Eddie Hincewicz has started 2 posts and replied 4 times.

Post: Shenandoah (Page County) STR Rules Changing?

Eddie HincewiczPosted
  • Rental Property Investor
  • Arlington, VA
  • Posts 4
  • Votes 2

Hi All, has anyone else heard that Page County is discussing a 2-year moratorium on new STRs?!? If anyone has info on this please shoot me a message. This will have a big impact on the Page County STR market...STR properties will shoot up in value if/when this happens.

Post: Financing Short Term Rentals w/ a Business Partner

Eddie HincewiczPosted
  • Rental Property Investor
  • Arlington, VA
  • Posts 4
  • Votes 2

@Kingsley Thomas, Thanks for following up. We've picked up two additional properties since my post.

Property #1: Purchased a SFH (3bd/2 ba) off-market in Skyline Lakes - Stanley, VA. This one is a solid value add play. The owner had passed away years ago and the property was in a dilapidated state. Picked up the property for 50K cash, pumping another 125K into the rehab. The plan is to quitclaim the property into our LLC, then refinance with a commercial portfolio loan. We expect to repatriate all of our capital investment and then some.

Property #2: Purchased another SFH (3bd/2 ba) off the MLS in Shenandoah County, VA. Purchase price 261K. The property is already in fantastic shape, but we're currently building out the basement to add another thousand sqft. This deal was done with a conventional 10% vacation loan. Will quitclaim the property into our LLC after a year, then refinance with a commercial portfolio loan. Again, we expect to repatriate all of our startup capital.

We're looking to pick up a 4th door in the next 3 months. The biggest challenge that lays ahead of us is scaling our processes with each additional door.  Actively looking into ways to further automate/outsource the day-to-day management of guests and guest communication. 

Let me know if you'd like to connect sometime to chat about all things STR.

      Post: Google Fi/ Rural Internet Options

      Eddie HincewiczPosted
      • Rental Property Investor
      • Arlington, VA
      • Posts 4
      • Votes 2

      I have a property in Shenandoah county that uses Beam by Shentel (it's their new satellite service branch). They might extend their services out to Culpeper County...worth checking. Alternatively, a lot of people in that general area use DISH for internet, but you have to purchase a cable package with it (not worth it).  

      My recommendation is to skip Hughes if that's the only internet service provider available and wait until Starlink is available. That's what I'm doing with two other properties in the Mountains of Page County. 

      Post: Financing Short Term Rentals w/ a Business Partner

      Eddie HincewiczPosted
      • Rental Property Investor
      • Arlington, VA
      • Posts 4
      • Votes 2

      Hello BP Community! 

      I'm reaching out for your insight. I'm partnering with a close friend to purchase properties for short-term rentals in Page County, VA. My partner already has an STR, but this is my first time diving into the STR market and investing with a partner. We plan on creating an LLC for our business venture and are reviewing options on how to structure our first deal (meeting with a real estate lawyer and tax professional soon).

      In doing my own research, I came across a BP forum post that discussed buying a property with a residential loan, then using a quitclaim to transfer the deed to your LLC. This seemed risky to me for a number of reasons...maybe I'm just being naive. Wouldn't it make more sense to purchase the property through an LLC, or, at the very least, transfer the deed to a land trust and list the LLC as the beneficiary?

      I attempted to list out the pros and cons of both approaches below. Are there any seasoned STR vets out there that can provide insight on the options below?

      Potential Options: 

      1) Purchase property with a residential loan (sole or joint). Quitclaim to a land trust. List LLC as the beneficiary.

      Pros: better financing than commercial

      Cons: Loan would me in my/our name (does that pierce the corp veil?), the note could be called, transfer tax, would need to change title insurance, what else? 

      2) Purchase property via the LLC with a commercial loan. A long-term hard money loan to the LLC would be another financing option based on the STR returns we're seeing.

      Pros: protected from the start

      Cons: worse terms than a residential loan

      Thanks,

      Eddie