All Forum Posts by: James Black

Hello all,

I am in the process of building a vacation rental on a ski resort...we are 14 months in....and still not complete. The builder sprung some increased expenses on us that are in excess of 30% of the original price quote. Some overages were expected and some were change orders (less than 10k worth). 

There are many spots within the contract where the builder appears to be in breach. I just want to get the project complete at this point, but now that I started asking questions regarding invoices and bids to support the overages, the build has stalled to a snails pace. We are also unable to get a firm completion date out of the builder. 

There is much more I could get into, but I just wanted to reach out to the group to see if anyone has had to deal with this in the past. Firing the builder is on the table, but we are trying to avoid that. I would be interested to hear if anyone has fired their builder in the middle of construction and what that looked like.

Thank you for any feedback. 

James

@Taj Richardson Thanks for the feedback, but I am aware they won't consider STR for DTI. I am just looking for a source to get data on the STRs for an area to help support my case if need be. But even if I wanted LTR data for an area...is there a source for that. AirDNA is expensive.

I am in the process of building a vacation rental on a four season resort. It is funded by a construction loan and will transition to a mortgage around January. My concern is that my DTI is not great and I won't be able to get a good rate or pull some of the equity that the home will more than likely have when it is complete. I have enough in savings to cover 6 months of mortgage for my property, a long term rental I own, and this property I am building. But the banks seem to focus primarily on DTI.

Is there anywhere I can collect historical performance data on short term vacation rentals in a specific area? I would like to have that in my back pocket in case I run into any issues when it comes time to roll over to a mortgage. 

Thank you for any assistance.

James

I am in the process of having a vacation rental built using a construction loan. I am considering selling once complete. The question I have is can I list it while it is still under construction if I have a CO? If so, what does the process look like? I am trying to avoid transitioning from a construction loan to a traditional mortgage to avoid any extra fees. 

Thanks for the help!

@Dave Foster Would you be able to discuss over the phone?

Hello everyone. I am about to sell a rental property that will result in 50k-75k in profit. The question I have, which I haven't been able to find a clear answer on, is will I have to pay the 15% tax on gains or 0%. My taxable income is under the 2020 bracket of 78K, but that is before the sale of the property? Will that add to my taxable income and push me from the 0% to 15% bracket? I have done all of the online capital gains calculators with depreciation recapture and improvements, which definitely result in a capital gain.

My intentions are to put the profits from the sale into a couple of rental properties. The house is on the market already, so a 1031 is out of the question since I do not have a future property identified yet.

Thank you for your responses in advance.

James 

Have rental property interest rates gone done since the federal was decreased? Considering refinancing, but every site results in a hard inquiry on credit report. Currently 5.25% with excellent credit on rental.

@Patti Robertson would that require living in the property since it is a VA loan?

Their lease is up May 2020. The property is in pristine condition.

@Maureen McCann Currently have renters in the house, so was considering a refi to tap into the equity. Thoughts? 

Also, I am a landlord by default. Lived in the house I am currently renting at one point, so I am essentially a newbie. The thought of out-of-state investing as a first timer is intimidating to say the least.