All Forum Posts by: Jonathan Snider

I believe he said normal interest rate was around 7%. I was thinking if the number's work it would be best to take the not-so-good interest rate and refinance later, like you said. Thanks!

I have been saving up for a while to purchase my first STR. I did some rough calculations and figured I should be ready to purchase in the first half of 2025. I had a meeting with a lender about getting a second home loan. He told me about LLPAs and presented me with a lot of option related to them. The way I understand it, I would have to pay 4.125% of the purchase price in LLPAs if I want to get the normal interest rates. If I don't to that, then my interest rate goes up.

This is completely new to me, and it's a bit of a bummer since that would delay me getting my first STR that I have been saving up to get for a long time. What is the best path forward?

1. Don't pay LLPAs and take the high interest rate?

2. Save up long enough to pay the LLPAs to get a better interest rate

3. Something between #1 and #2

I know the answer is probably something like "however the numbers work best", but I'm looking for general guidance. How have you handled this situation?

I stayed near Asheville, NC for a weekend in a Glamping Dome in the mountains. Was an awesome experience! The guy that owned it had like 20 other similar units on the side of the same mountain. It was like $300+ per night, but it was such a cool experience that I didn't miss the money too much. I started thinking what a great business that guy must have going. He has 20 units all right together on the side of a mountain, meaning it's probably easier to manage. He's able to charge a good bit of money per unit since it's a unique experience, and they should be relatively cheap to build once you have the land. 

What are your thoughts? What am I not thinking of? What's the downside?

I am saving up to jump into the real estate investing world. My plan so far has been long term rentals, but, recently, the idea of short term rentals crossed my mind. I think it would be really cool to own an AirBnB in multiple places that I would like to travel to. Maybe have one in the mountains, one on the beach, one on the lake, etc. I'm curious to hear if this is a common strategy? Or do people generally keep their rentals in the same location so they are easier to manage?

Here are some pros and cons I have thought of, but I would like to hear others:

Pros

- Vacation to your own rentals in multiple destinations for cheap

- Portfolio is more diverse. If I have a beach house that is booked heavily in the summer but not in the winter, I could have a house in the mountains that would still be booked in the winter to offset the lack of income from the beach house

Cons

- Harder to manage from far away

- Would need to stay familiar with laws in each area

Any thoughts?

I work an 8-5 as a Software Engineer in Memphis, TN. I want to get into real estate investing to replace my job in 10-15 years. I see a great opportunity in the Memphis area, and I want to take advantage of it. "Blue Oval City", Ford's new electric vehicle plant, is coming to Stanton, TN in 2025. This will create thousands of jobs and bring many newcomers to the Memphis area. I think the area that will benefit the most from the new-comers will be Lakeland and Arlington, which is about half way between downtown Memphis and the Ford plant. I want to try to get some single family homes in the area to rent out. I currently own a home in Cordova, TN. My plan is to buy a house in Lakeland or Arlington and rent out my current house. I will live in the new house for a year or 2, then buy a new house and repeat the process. 

My thinking is that this will allow me to slowly build stable income. I will get good interest rates/down payments because it will be my primary residence. I can live in the houses and fix anything that needs to be fixed while living there. I will gain a good amount of equity because I will be buying houses in the 250k-300k range rather than finding cheap deals for like a 50k house.

Is this a good plan? What am I not considering?