All Forum Posts by: Joshua Rowland

Do you already own a property in Murfreesboro? Just curious, why Mboro for a STR? I love Murfreesboro for many reasons but when I think of going on vacation, Mboro never comes to mind.

Murfreesboro has the stones river battle field. I’ve seen niched travelers rent close to that area.

1 Vote

Nashville, Tennessee

Anywhere near MTSU has potential, but Murfreesboro overall isn't a viable option for STR.

0 Votes

Nashville, Tennessee

Quote from @Udawath Praveen:

Thanks Collin. Your log cabin looks great

Quote from @Collin Hays:

This is a great question. In the mountains, many folks want to stay in something that looks like a log cabin. There are some really nice modular homes out there that look great. And you can make a frame house appear like a log cabin easy enough by log siding on the exterior, and pine or cedar tongue-and-grove paneling on the interior.

At least in the Gatlinburg area, most of the "log cabins" are fakes. They have the siding and paneling inside. But the truth us, most guests don't know the difference, nor do they care. It still looks and feels like a cabin.

In 2017, I built a genuine log cabin in Gatlinburg. I had yellow pine (very hard wood) logs shipped in from Canada. They were rectangular, and you basically stacked them just like "Lincoln Logs". But this is a very expensive and arduous process: For a light switch, you've got to literally bore a hole down 5 or 6 feet of wood with a special bit, to run the wiring. Similar for outlets. And the wood moves and needs occasional adjusting with special tools. The wood also needs routine staining and sealing, plus you have to protect it from critters like wood peckers and carpenter bees.

But...I wanted to the real thing. I wanted a true log cabin that would be there long after I am going. I was only going to get one shot at it, so I did it right. A log cabin is going to be a multiple more expensive than any frame built house. It's just a lot more cumbersome and complex.

Here is a link to my log cabin, on the bank of the Roaring Fork in Gatlinburg. Take a look at the walls on the inside. There is no paneling or sheetrock on the walls. It's just the logs.

https://cabinsneargatlinburg.c...

Thanks Collin. Your log cabin looks great !!

Thank you for some key inputs on log cabins and complexy involved and also turned out to be expensive. What are your thoughts on modular homes vs stick built from short term rental perspective in terms of appreciation as well as economy in building the same sq ft ?

I'm actually in the process of plopping a modular "cabin" on a plot of land in downtown Gatlinburg. It's cheaper and faster compared to the 12-15 months you have to wait for stick built. You'll maybe wait 2-4 months for it to be turnkey. I have seen a cute 600SF cabin keep up with the rest of the 1b1b cabin homes in terms of price last year, but that was last year. Remember the people buying your STR's are investors looking for the same thing that you're looking for, which is gross and marketability/cuteness on Airbnb and VRBO. I'm assuming you can still take depreciation on these modular homes as well.

1 Vote

Raleigh, North Carolina

Quote from @Ben Thompson:

I have a question on the occupancy rate in Gatlinburg we are looking to purchase a vacation home this year but would like to be in an area we would like to visit but also create a good revenue stream. With the increase in home values is this still a market for a small investor? Thanks!

Sweat equity deals, or new construction are alternatives to make you cashflow better in Sevierville. As long as your cabin checks all the marketable boxes you’ll still cashflow decently (cabin-style, hot tub, close to DT, view). I have started to see people go out of pocket in the beginning months though, but you’ll makeup for it in the later months. Regardless, I believe you’re suppose to calculate airbnb annually and not monthly. So you’ll still come out on top if even if you have bad months in the beginning of the year.

Here’s a 2020 spreadsheet of occupancy. The numbers may be skewed bc of the pandemic, so some may recommend to look for 2018-2019 data.

Here’s a bit more info

1 Vote

Nashville, Tennessee

Hey BiggerPockets community! I'm 22 and been self-employed for over 2 years. I'm looking to finally get my feet wet after years of research and saving, but the obviously issue is reducing my tax bill, while still showing a good income to the loan officer and underwriter for DTI purposes.

Please let me know if I have misunderstood what gets added back in! Here's the "add-back ins" i've read about on the forum.

1. Schedule C Depreciation Line 13. I own a video production business, so expensive camera equipment will be depreciated (non-realestate stuff).
2. Schedule C Home Office Line 30
3. Schedule C Vehicle Miles P2 44a
4. QBI Deduction (apparently this can show up on two different forms, which form gets added back in if any)?

Am I on the right track guys? Thanks in advance!

(the bigger picture is for me to FHA into my first property in Gatlinburg TN. I'll house hack the first year, then move out and turn it into STR)

0 Votes

Originally posted by @Aaron W.:

@Joshua Rowland From my understanding, the income part of the DTI is your income before taxes and deductions which I've taken to be the $59,742 from your screenshot.

I thought self-employed people's NET income (after taxes) was used for mortgage qualification rather than the gross (before taxes)?

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Hey guys, I believe for self-employee income the mortgage lenders use your net-income to qualify you for your DTI? Which number would this be on the screenshot below?

0 Votes

@Basit Siddiqi if I write it off, I can’t qualify for a higher mortgage. The 40 and 60 is after expenses, to answer ur questions.

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My objective is cashflow. Can I FHA into this? I understand there is HOA fees.

Is there successful beginner real estate investors, who have done this?

0 Votes

@Kirbi Campbell

Buy first property (investment or primary)

Grow my business to 10k a month

100k subscribers on YouTube

1 Vote

All Forum Posts by: Joshua Rowland

Joshua Rowland has started 4 posts and replied 12 times.

Post: Need Manager for Short Term Rental in Murfreesboro, TN

Post: Need Manager for Short Term Rental in Murfreesboro, TN

Post: Build to Rent - Short Term Rental ( Loghomes vs Modular vs Stick)

Post: Single family homes/ vacation homes

Post: What things do underwriters add back the into DTI? Here's a list

Post: Which number does the mortgage lenders look at (DTI)? noob ques

Post: Which number does the mortgage lenders look at (DTI)? noob ques

Post: I have to pay 20k to the IRS to play the RealEstate game

Post: Thoughts on buying a condo/apartment for student rental?

Post: What are your goals for 2021?