All Forum Posts by: Jason Riddick

Can I use equity in my current home (265k mortgage vs 400k value) to get a down payment on a vacation rental property. 

So I own a home with some equity. I live in a big vacation rental market (75% of homes are vacation rentals). A home is coming up for sale 2 doors down(needs work but I can handle that part easy) for a decent price. How do I talk to a lender about getting this home? its for sale for 295k, would have an ARV of 385k, probably at least 50-60k in work, maybe clear 30-35k a year after expenses and upgrades. What and how do I ask a lender to get a loan on this property. I own a flooring store that I am also an employee of (its an S corp) and make about 90k a year. not sure if that helps. good credit and only payments are a truck that my company pays for 100% and a camper loan on top of my house mortgage.

Are there any tools that help you do a rental projection for a possible AirBnB out there? I live on the Outer Banks North Carolina where vacation rentals and companies that manage them are huge. The rental companies can give you rental projections (about how much you can make renting per year)  based on how many bedrooms, your location, how close you are to the ocean and amenities. I am wondering if AirBnB has a tool for that too (being local, I would self manage of course) and use them for booking. I know a lot of the locals have turned to AirBnB because you get more rentals and the management fees can be upwards of 40% with the hands off companies. 

the people (at least locals I know) are doing great with AirBnB. the hands off management companies take so much of the pie that they are very hard to cashflow with from what I can tell. 

So yesterday I stopped by a client/friend to chat about a flooring project at his house and the discussion came up about a old motor court that he bought and fixed up on the beach and i said if you ever think about selling the place you talk to me first, just throwing it out there to him. he said he has been thinking about selling as he has too many projects out there as it is. he is a big local investor doing bigger projects. basically it comes down to it has about 500k in rentals each season, price in 2.9 mil, has had a major recent update, its ocean front, repeat business is through the roof, if fills a much needed niche that has been over looked in my community. (mostly huge vacation rentals here where you need 4-10 other couples to rent a giant beach home) while this is about 20 units, but it varies from 2 bedrooms to 4 bedroom cottage units so i has a little bit of everything. here is the awesome part, he does little to no advertising or anything, not even a good webpage just a infrequently updated facebook page and he pulls rentals like that. so there is definitely room for growth. I don't think there is much deferred maintenance but the units are old but i know everything about construction and such so Im not scared of the old part and own a flooring company, which is the best part cause thats the only thing the place needs is new floors/ interior paint. 

I have NO money to put down but would hate to invite an investor on board for the down payment (which will prob run 10-20% right? i have been looking to get into the game for a year but in an area where property values are inflated because of being a resort area its hard to find any cashflow properties. but running the numbers every such way its a really nice investment to get my feet wet and develop a vacation rental hospitality business that i could excel in while picking up valuable real estate in the process.

how would you tackle this loan wise? I dont have the hard details but first few years i would be on board for the most part developing systems and filling in the shoulder months with Air BnB and social media and trying to find the roof on prices for the main season. i know very little about commercial loans and options out there, with my rough math a 15 year loan at 5% would definitely be doable and would like to be aggressive in building a portfolio with a few of these types of investments as there are over looked opportunities here. 

super cool, was looking for a group about 6 months ago, glad to see this pop up! Will def be there!. 

Coastal wood floors (was custom wood floors but i mostly do normal refinishing and its actually what i like to do) but i do all kinds of floors (for rental units you cant beat coretec) Almost all of my contacts are concentrated on the OBX and they might venture up into currituck but getting them up more towards the metro areas would be harder. also capable of most interior work like trim, cabinets, painting. dont really venture outside of that much unless im DIY

awesome! im a beginner investor, I own a flooring company a little south of you on in currituck and we service mostly the outer banks but will probably look more north for investments for BRRR and maybe some flips if the money is right. keep up with me, if you ever want any ideas of finishes or construction i am pretty knowledgeable about "renter proof" ideas to keep down the maintenance of a home without breaking the bank. this whole area is awesome and a great place to live and invest if you arnt familiar yet with the area.

hello, beginner investor here but looking to branch out. Im actually closer to OBX but breaking into that market is way higher entry price and looking around. what kind of deals are there in chesapeake area? I have a lot of home remodeling experience and quite a bit of tools and trade hookups if anyone is interested in any type of partnerships. also have NC real estate license. if any one wants to call, even just to shoot the bull and bounce ideas off of each other please reach out.