All Forum Posts by: Justin Hinckley

@Michael Rendon I had this issue trying to get a loan for a second airbnb, attempting to use my first airbnb income for consideration as income. I called national banks, local banks, credit unions, and some hard money lenders. With one exception, none of them would accept the income without 24 months of income tracked. I was at about 18 months at the time. One hard money lender would accept it, but there were many other issues with how that lender wanted to proceed. It ultimately happened after I acquired more W2 income.

@Mike Dawson good luck dude! Seems like a strategy with potential.

@Mike Dawson thanks for the welcome! Good luck in New Bern! What type of investing are you looking to do in that area? It's been awhile since I've been up that way but I enjoyed the area every time I went.

Quote from @Justin Windham:

@Justin Hinckley

Welcome to Bigger Pockets!

If you are looking to invest into real estate, I have found this site to be incredibly helpful.

The site has quite a few tools that can be helpful for new members. For example, if you are looking to connect with other members near you, want to learn from people in a specific area you’d like to invest in, or have a desire to find people interested in certain topics, you could use the search feature here: https://www.biggerpockets.com/search/users

I really like the alerts feature that can quickly guide you to current topics that may be of interest: http://www.biggerpockets.com/alerts

 Hello fellow Justin! Thanks for the website use tips! 

Quote from @Julio Gonzalez:

Welcome to BiggerPockets, Justin! 

Thanks Julio! Excited to be here!

Quote from @Wes M.:

@Justin Hinckley Best of luck, keep me posted on your ADU funding. I am considering doing the same and am estimating about $120k for a 900 square foot unit.

Will do Wes! You're in the right ballpark for your estimate. Mine is quoted at 105k for about 400 square feet. I've been given info for a couple of great contractors when you're ready.

I'll definitely let you know how funding goes. I've found some good options on that front, my situation at the moment is what's holding up funding.

Maximizing amenities that visitors in your demographic might like helped us when we first started. Clotheslines, hammocks, outdoor showers, outdoor seating/eating spaces, and bug repelling torches/candles (preferably torches so they can't be moved to areas where they become fire hazards) are all good options for outdoor amenities. Blow dryers, beach towels, makeup removal pads, diffuser, sound machine, and radio/speaker are all good indoor amenities.

We've attracted a couple of customers who booked because they saw from one of our reviews that we recycle and have a list of what is recyclable in our municipality. They liked the idea that their hosts cared enough to add a conservation-minded amenity. Obviously you might not be able to do that if your area doesn't have an option to recycle, just an example of unexpected things that may attract guests.

Hey folks, I actually had the idea to post here because of the latest episode of the BP podcast, about Accessory Dwelling Units. I'm in the process of building a detached ADU on my property in order to Airbnb it and having difficulty securing financing, due to the unique situation of my life at the moment. I'm here looking for creative ideas or feedback of things I may be overlooking to secure the financing. We're getting down to the wire to start breaking ground on construction and I'm figuring out how to make this happen without significant delay.

The ADU is on my wife and I's primary residence property, which we currently have a mortgage on. This is causing hard money and investment lenders to not lend on the project because it is on the primary residence property. An issue I'm having with banks is I do not want to refi my current mortgage because I just refinanced several months ago and have a really low rate. Refi'ing my entire home loan and doubling or tripling my rate does not seem like the smart play, given the size of the loan compared to my current mortgage. I have equity in the home, but not enough to fund the ADU through a HELOC or home equity loan. I have considered getting an appraisal, because thus far I am going off the Zillow Zestimate, which tells me I have about 90k in equity but I don't know how accurate that is. I don't expect it to be considerably higher than what Zillow says.

I am recently released from Active Duty in the Marine Corps, and do not currently have a W2 job (a couple of 1099 jobs currently or happening in the near future). My wife is also a 1099 contractor with several of her own businesses. Finally, we run an Airbnb out of our primary residence, and have been doing it for 13 months. Basically, the issue I'm having here is that the only income most lenders and banks will count is my wife's income because she has over 2 years of history in her 1099 job. My income is way too new (and not W2) and lenders are all requiring at least 2 years of Airbnb history. This is causing our DTI percentage to be too high for hard money lenders and banks to be willing to loan.

The above facts have me applying for W2 employment right now to alleviate this issue, but that will be 30 to 60 days before solving the problem, minimum.

My wife's credit score is around 790 and my credit score is over 800. We have no debt other than the mortgage. We could fund about 30% of the needed building funds if we needed to. We have a builder, we have plans, we have a quote.

Finally, I am here wondering about lending options I am unfamiliar with. Thanks to the episode about ADUs with Derek Sherrell today, I am looking into HomeStyle Renovation Loans. I actually had an application for a HomeStyle in with one bank near me, but the Airbnb income being invalid killed us. I actually missed qualifying by almost the exact amount our Airbnb brings in. Anyway, looking for recommendations or suggestions other than what I've posted here. Ideally, we would find a bank or lender that accepts our Airbnb income as our profile is strong. We had 100% occupancy all summer 2021 (I think it was 100% from April to when we blocked it off for several weeks due to family considerations in September). Our profile has Superhost status. We live in a strong tourist area of Wilmington, NC. The property in question is about 15 minutes from one very popular beach (Wrightsville) and about 35 minutes from a second popular beach (Carolina Beach). The city has a population of >100,000. Average nightly rate of the current Airbnb is 100USD. The new Airbnb will be an average of 220USD. Does anyone know of lenders who are comfortable lending on Airbnb real estate/investments?

So, all of that said what am I missing? What other ways are there to finance this ADU project? Drop some knowledge on this newbie!

Hey folks! Been listening to the various BP podcasts for about a year now. Finally getting to the point where I'm ready to expand my real estate portfolio. My wife and I operate one Airbnb out of our primary residence right now and are working on securing funding to build an ADU on that same property to open a second Airbnb. We're having some difficulty on the funds front at the moment, so I've been making phone calls like crazy lately! Considering posting about it in the forums later to see what creative ideas people have.

Anyway, we live in Wilmington, NC and are considering investing in York, PA in the next year or so, near where my parents live.

With joining BP my main goal right now is to get to the point where long-term rentals provide enough passive income to cover our living expenses. I think we can do it in 5 years. We want to do this to supplement Airbnb income, as Airbnb is great, highly profitable, but irregular.

A fun fact about me is that I love trying new things and thus have minor experience doing many different things! I am a terrible surfer, mediocre rock climber, terrified mountain biker, barely able to converse Arabic-speaker, and many others. I'm also a certified EMT and SCUBA diver!