All Forum Posts by: Cody Haptonstall

@Matt Brashear - Unfortunately that deal did not go through.  I took too long pulling the trigger and it was bought by someone else.  I didn't have a lot of confidence that I wasn't missing something and fell prey to "analysis paralysis".  

With both state and city taxes included the rate is 11.625%.  The city does have some initial filing and annual fees for the business but they are minimal $35 annual after the initial.  I haven't had a separate insurance quote run for the vacation rental.  That would be a good follow-up.  Currently I have insurance expense at $100 a month.  Total expense is $3026 of which $1610 is P&I.  5% for repairs.  Management, cleaning, and misc. are 20%.

I ran the calculator lowering the income by 15% to accommodate a higher vacancy rate.  The numbers still look good with the exception that it eats up the cash-flow.  I would assume that while a $200 cash flow is reasonable for a long term rental that would not be reasonable for a vacation rental.  There's too much seasonal variability.

This is northern Arizona.  I'm curious to hear from other Vacation Rental investors.

So I talked to a lender and I can get a conventional loan at 15% down.  I reran the numbers and added 1 point. 

Buy at $375

60.5k needed

Monthly cash flow at $875

Cash on Cash ROI at 17.4%

Purchase Cap at 8.4%

Assumes $4000/month income based on actual 2016 numbers.

Monthly expenses $3121 including management.

This is actively a vacation rental and would continue to rent as such.  How much margin should I give myself for variation in rental income? 

What else should I consider for a vacation rental that wouldn't be typical of a long term rental?

I am using the Rental Calculator for analyzing a vacation rental. I'm looking at a 2/2 for sale for $375k. Using 20% at list price and 4.5% IR and using actual income and expense numbers provided by the seller for 2016 the property analysis is showing a cash flow of over $1000 and a COC ROI of almost 16%. The analysis shows an NOI that matches what the seller is advertising. I'm new at investing and while this seems like a great deal I'm trying to make sure I'm not missing something.

I am trying to get started in investing and I have very little to work with in terms of assets and cash.  I have access to a certain amount through friends and family but need to be very careful how its used.  The area I'm looking is a sellers market and properties do not stay listed very long.  I have found what I believe are several good deals based on the numbers I'm running (trying to make sure I include accurate expenses).  I have done a lot of research, watched a lot of webinars, walked a lot of properties, etc..  But I'm having trouble figuring out the best way to move forward.  Many of the deals I read about use hard money lenders.  Even with a great deal in hand I don't have any real leverage for a hard money loan aside from the property that loan would acquire.  Without having talked to hard money lenders is it reasonable that, given the right deal, I would still be able to get that loan?  I have a good job that pays reasonably well.  Personal credit is very good but I still have student loans and alimony that prevents me from qualifying for a conventional loan at the value of most of the homes in the area I'm looking.  I'm open to any suggestions or things to consider.  Is the best way to build credibility with lenders just a process of doing deals?

Thank you in advance!