All Forum Posts by: Account Closed

After crunching the numbers (and having a hard time getting a DSCR loan at 80%) we decided to hold on to it to sell. It's been on the market for some time now. Market is picking up generally in the area and I'm hoping it sells in the near future

Hi Bruce! I have my property listed with a few insurance relocation specialists. Most of them have a "list my property" section on their website, where you can register your property with them. They will simply call you when they want to use their property. You can simply google "insurance relocation companies"- ALE is the most common, but there are many more. 

To answer the first question, I am military and out of the country for the next 7 months, so living there isn't an option in the near term. I have had a lender guide me in the conventional loan direction, which I could then rent out likely as a Midterm rental. Still a little confused as to why DSCR would be a better option, as conventional would have slightly lower rates. Next, I supposed I would consider seller financing... maybe this would be an option to advertise to investors. Option 3 may work in the specific location as well, as its "up and coming." Do you have a specific way you would advertise this to renters, other than putting it in the rental description? Thanks!

 That's a good point, a 5 year loan won't be much help, especially if I am not paying down the principle. 

Andy I appreciate the response. I totally agree I should have started with a smaller flip. My main concern is the monthly HML payment is now fairly large after having to extend it past its original maturity. Having it sit on the market for months like this could potentially drain me, financially. Another option I am considering is a bridge loan, to use for a shorter period of time before the market will likely pick up (just slightly) in the summer. Do you see these loans as being an effective tool?

Hey everyone, I wanted to get some advice on a house flip I have done over the last year in Madison, TN. This was my first flip, that I financed with a hard money loan. The finished house is a 3/2 that now looks really great, but the project has dragged on for a long time and has me in a tight spot. I purchased it in October of '22 for $266k with a targeted exit at $460k, and it has just recently been completed. It was a large flip project (original budget was $110k renovation costs) that went way over the planned rehab time as I had many issues with the GC I used. The original exit was to sell, but with the slowing market I would be lucky to sell for $440-450k at a $50-60k loss. I'm thinking about options going forward, and am hoping for advice for the following. Do I?

A. Leave it on the market this winter and keep paying an interest only hard money loan, with high monthly payments, hoping it will             sell?

B. Get a 5 year 70% LTV DSCR ARM loan interest only at 8.75% and rent it out for minimal cash flow, hoping the value will go up after 5 years? This lender requires paying points selling before five years, so it doesn't seem to be the best option.

C. Some other Investor loan product I haven't come across yet. 

D. None of the above- creative solutions I haven't thought about yet. 

Any advice would be appreciated. The biggest thing I have learned on this journey has been just how strict you need to be with GC's. I'm sure there are great one's out there, but I needed to be way quicker to fire mine. 

 I've been out of the market for six months now, and probably can't give as good an answer as @Matt "Roar" Gardner could, but it certainly seems to have outperformed other popular STR markets despite the uncertain economy. Prices are higher like any market, but there are still good returns to be had. 2021 brought unprecedented levels of travel to the area, and it didn't slow down much in 2022. I'm looking into getting another rental in the area in the near future.

@Matt "Roar" Gardner I pocketed a little over $50k in just over 6 months. Great numbers for a 970 sqft 2 bedroom condo! I think some of it was due to the extraordinary demand in the summer of 2021 post Covid, but it's still a great market and one I want to get back in to. 

Investment Info:

Condo buy & hold investment.

Purchase price: $266,000
Cash invested: $9,400
Sale price: $450,000

I purchased this condo in Destin using a VA loan, in the Spring of 2021, putting in just over $9,000 of closing costs. I lived in it for about a year, renting it out on Airbnb for a few months before selling for a profit of nearly $160,000 16 months later. Although the timing of the market played in my favor, the momentum this initial sale gave me was very motivating to continue my real estate journey!

What made you interested in investing in this type of deal?

I knew condos did fairly well in the Destin area, despite the bad rap they often get from real estate investors.

How did you find this deal and how did you negotiate it?

I found this deal through a stellar Destin real estate agent who connected me to the right property.

How did you finance this deal?

I financed this with a VA Loan.

How did you add value to the deal?

Before moving, I put in new floors, paint, and furniture in order to charge top dollar.

Lessons learned? Challenges?

Being an Airbnb host can be a very time consuming job- if you aren't hiring out management it seems like you always need to be near your phone. However having systems in place to ensure you guests are happy and questions are answered in advance can reduce this drastically.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with Matt Gardner, a stellar real estate agent in the panhandle I recommend time and time again!

Investment Info:

Condo buy & hold investment.

Purchase price: $266,000
Cash invested: $9,400
Sale price: $450,000

This was my first real estate purchase, nearly a year after graduating college. I purchased this condo in Destin using a VA loan, in the Spring of 2021, putting in just over $9,000 of closing costs. I lived in it for about a year, renting it out on Airbnb for a few months before selling for a profit of nearly $160,000 16 months later. I also gained valuable Airbnb hosting experience after moving out as my personal residence.
Although I got very lucky with the market timing, this initial success in real estate has provided me with some great momentum and motivation to keep the journey moving!

What made you interested in investing in this type of deal?

I knew condos did fairly well in the Destin area, despite the bad rap they often get from real estate investors.

How did you find this deal and how did you negotiate it?

I found this deal through a stellar Destin real estate agent who connected me to the right property.

How did you finance this deal?

I financed this with a VA Loan.

How did you add value to the deal?

Before moving, I put in new floors, paint, and furniture in order to charge top dollar.

Lessons learned? Challenges?

Being an Airbnb host can be a very time consuming job- if you aren't hiring out management it seems like you always need to be near your phone. However having systems in place to ensure you guests are happy and questions are answered in advance can reduce this drastically.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with Matt Gardner, a stellar real estate agent in the panhandle I recommend time and time again!