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All Forum Posts by: Gerald Pitts

Gerald Pitts has started 11 posts and replied 460 times.

Post: Cash on Cash Return Blue Ridge GA

Gerald PittsPosted
  • Rental Property Investor
  • Asheville NC
  • Posts 466
  • Votes 317

My understanding in this market is that you have a lot of affluent, young ATL folks that "want it to look like Joanna Gaines threw up in it."  I would go w / newer as possible, or fix up the old one as much as possible to get to this place.  Like @Quinn Olivarez was saying, you have cash involved either scenario.  To me, if it's not a significantly higher amount at the end of the day, I would prefer newer in this mkt.

Post: Alright guys stupid question...

Gerald PittsPosted
  • Rental Property Investor
  • Asheville NC
  • Posts 466
  • Votes 317

You can also do an investment loan for 15 down. With this you can count projected income.  My understanding is you can do the 2nd home / vacation home loan with a few requirements like staying there x days a year, and not having a property manager or lease. You also can't count projected income. 

Post: 2022 best cash-flowing markets for Airbnb?

Gerald PittsPosted
  • Rental Property Investor
  • Asheville NC
  • Posts 466
  • Votes 317
My understanding is most cities that crack down usually didn't have any regulations in place. You want places that have a long track record of tourism that depend on that vacation rental money. 
Originally posted by @Arwin Nassiri:

@Collin Hays @Taylor Dasch @Dave Stokley

Completely agree that good STR deals can be found locally with the proper due diligence. However many markets such as Hawaii, many California hotspots (ie Joshua Tree), and many other big cities are cracking down on rental policies thus resulting in many investors (such as myself) exploring out-of-state markets. Additionally, management fees included, it can also pay off to invest in markets with higher occupancy rates and purchase-price:daily rent ratios

Post: Analyzing Short Term Rental Question?

Gerald PittsPosted
  • Rental Property Investor
  • Asheville NC
  • Posts 466
  • Votes 317

I haven't tried Rabbu, but have heard others mention it. It's free. The paid version of airdna is also worth it to me when it comes to investing a DP of five or 6 figures.  There's also the data included with a cheap Pricelabs subscription. 

Post: Short term rental, multi family, duplex, FHA 203K loan. Not sure

Gerald PittsPosted
  • Rental Property Investor
  • Asheville NC
  • Posts 466
  • Votes 317

Probably just have to live in it year one unless life happens and takes you to another city, etc. But as long as Str laws are fine, need to run out that first side probably immediately. Then both sides after the year is up.

Post: Qualifying for a STR mortgage

Gerald PittsPosted
  • Rental Property Investor
  • Asheville NC
  • Posts 466
  • Votes 317
Brenna Carles with The Mortgage Shop. I think they're registered in most states. I haven't done a DSCR loan with them yet, but it's 15% down  Brenna has done a ton of STR loans for Avery Carl/ Shower term Shop. 

Originally posted by @Kerry Baird:

@Gerald Pitts, do you have a DSCR lender you love? I have used a couple...and actually want one to close. :D

Post: Qualifying for a STR mortgage

Gerald PittsPosted
  • Rental Property Investor
  • Asheville NC
  • Posts 466
  • Votes 317
I'm not a lender, but from my experience with getting loans for STRs, Reid is exactly right. I did 15 and 20% down investment loans where they counted the income. Having recently quit a W2, I am currently using a DSCR loan while my DTI is too high to qualify for even an investment loan.  DSCR is totally fine in this case.  Interest rate is a little higher, but the numbers still work all day long. 

Originally posted by @Reid Chauvin:

If you are referring to a 10% down second home, then no, rental income is not considered. 

If you are talking about an investment property loan, where you must put at least 15% down on a 1-unit for a conventional loan, or 20% down for a Debt Service Coverage Ratio loan (don't need your own income to qualify for these), then yes, rental income is considered. 

As far as I'm aware, appraisers are not giving short term rental rates. They are only giving long term rental rates. Therefore, lenders are only able to use LTR rates. 

Post: Orlando/Disney STR: Buy now or wait?

Gerald PittsPosted
  • Rental Property Investor
  • Asheville NC
  • Posts 466
  • Votes 317

The best time to buy a home is always five years ago.  The second best is today. 

Post: STR lenders, do you have a one you've used and recommend?

Gerald PittsPosted
  • Rental Property Investor
  • Asheville NC
  • Posts 466
  • Votes 317

Find out who the other STR investors use in that area. They are the most experienced with STRs, and know about the 10% down 2nd home loan.

Post: STR - remote Self Manage basic questions

Gerald PittsPosted
  • Rental Property Investor
  • Asheville NC
  • Posts 466
  • Votes 317

I use Guesty Software. It has a link I send to my cleaners ONCE when I buy a property.  Done.  Also good for sending auto messages to guests.