All Forum Posts by: Elizabeth Conklin

Looking to all of you (the experts) to find out how I can successfully carry mortages on multiple properties without impacting my credit score. I have one conventional mortage on my STR and just starting drawing on a HELOC for further investment and my credit score is falling fast. Is this to be expected? My rentals are paying the loans successfully but I am worried this will impact my ability to harness financing for further investments. I would really appreciate your advice!

Thanks!

Elizabeth

Oh wow @Oz Radiano! I would love to hear more! That is impressive. Where in Upstate NY? I have one STR in Ellicottville and currently building STRs in the Dominican Republic. Ellicottville is a great market but also looking to expand to LTRs in Buffalo. If you have advice, I'd love to hear it.

Thanks for reaching out! 

@Rechit-  Looking at both and have been investigating Florida and my home city of Buffalo, NY.  Have most experience in STRs with single family homes but open to all.  

Thanks @Dave Meyer. This is great to hear. My work has had me overseas so it is comforting to know it is possible. Agreed-I currently have a STR and the team managing is excellent. May I ask--did you spend time in-person to build up the team or work with a partner/s?

I requested a HELOC amount and after appraisal realize I have a lot more equity than the amount approved? Can I ask my bank to increase my HELOC or revise after a period of time?

Hi Joe- I am new to REI also and can say that just being on this forum will give you tons of useful resources. The face that you have secured 60K is an awesome start. I connected with the "find the agent" section which allowed me to interface with agents in areas I was interested in investing. This is a great way to begin, as agents will send you leads and also have connections with banks and lenders.

One thing I also learned is that the financing options and lenders are many. Don't be discouraged if you get a few nos or the conditions you aren't looking for. Connect with lenders on this forum, call multiple banks. If you are looking for a commercial loan (financing for purchase and rehab) you would be best doing a bit of research on the comps in the area (you can find on zillow and also on the BP calculator) and put together a rehab budget. Do you have a W2 job? If so, you will need to have tax returns and pay stubs ready along with a copy of the HELOC (to show you have the funds).

Good luck!

Excellent cleaning crews, just like contractors, might take a few tries to find the best fit. I would make expectations clear and follow up often in the initial months. I would not accept a crew that inconveniences guests, as this is not good for your business. A few things that have worked with us for our STR:

1-We try to leave a day between stays to allow for time in case our crew has multiple properties to turn around.

2-We have put together a list of the key things that are priority for cleaning.  Clean kitchen, bathrooms are top items.

3-Generate a stock of cleaning products and toilet paper, paper towels, liquid soap etc so this is easily accesible to replace.

4-Use the same linens and towels have multiple sets so they can just strip beds and replace with clean sets. This cuts down on time and makes it simplier.

5-You can also generate a bonus if they do an exceptional job or start them at 150 and promise to increase if the job is done well (you can pass along this fee to guests on Air B&B and others).

Good luck!

Thanks-this is super helpful. I will discuss with my accountant to also determine what makes the most sense tax-wise. Cited penalties for early withdrawl and taxes have deterred me to date but it also seems like a missed opportunity given the state of the stock market.  

Thanks @Chris Seveney for the resource!

Looking for resources or guidance about pros and cons of using IRA or other retirement accounts for REI. Thanks!!