All Forum Posts by: Kent Baltare

Hey accountants or legal experts. I am trying to figure out something that is causing a barrier for growing my RE portfolio. Because of the fact that the income from my short term rentals require 2 years of returns before it's looked at as part of my DTI, while the loans tied to these places are taken to the calc right away. My DTI is causing me some challenges with growing.

My question:

Is there a way to have my income from my properties flow through an LLC without that LLC being on title to the underlying asset? (the home).

If I quitclaim the assets from my personal name to my LLC then my lenders will get upset which is the issue there. So I am trying to determine a way to keep the assets in my personal name but flow the income through an LLC, as a way to avoid this 2 year waiting period.

Sorry if this Q is a bit technical but thanks in advance for taking the time.

Haven Vacation Rentals. My 4th rental company I’ve worked with in Pigeon forge/gatlinburg. Can’t say enough about this small company other than my guests are super happy, My income is way up and my maintenance issues are fixed right away and done right on the first time. I don’t have a horse in this race but these guys have been a huge help for my portfolio of rentals in the area.

@Brian Larson I sure do Brian! Feel free to PM me to discuss some more specifics.

@Brian Larson check out Abodu in the Bay Area for a quick affordable ADU solution!

@Nic S. we are not necessarily looking to sell, only for information at this point. More than comfortable holding for obvious reasons.

@Robert C. valid points for sure. Thanks for sharing.

@Albert Ng we have had a few nights on airbnb when we first rented it, but then at the end of the first month we had our first tenant move in for a 6 month lease who here for work.

I guess my take away is try and find something that comparable in the area. The challenge is measuring how the differences in my place vs comps (location, updates, rent, etc)  factors in to a realistic expectation of selling price.

cheers,

No sales of duplex's in the area are very light.

My question would be if a duplex sold for X and generated Y in annual income, how would the fact that my place generated Y+40% factor in to the price.  I assume you would have to use cap rates at that point, but I'm not an expert.

Thanks

Yes I am 1 block east of 87.  Remember it's furnished.  Aside from that we have all the history to support the numbers.

Hello I have a home i purchased a few years ago in San Jose. I remodeled the back, and turned the front of the house in to an ADU, currently getting the permit now that the lot size rules changed.

I have been renting the front for over a year at $3000/mnth  (1 bed/1 bath) as a furnished rental, no vacancy since listing.

In January I moved up to san Mateo to be closer to work and began renting the back out for $5000, furnished, so far no vacancy.

Now we are grossing $8,000/mnth about ($7100 after insurance, utilities and an estimate of 5% for maintenance).  This home is not far from willow glen, south of the city along the Guadalupe river, 900 ft from Tamien station and a 5 min drive or less to San Jose train station and the future Google build:)   Given the above numbers looking to get peoples thoughts on what a good sale price is considering comp cap rates.

Not looking for a realtor to represent the sale btw.. sorry.  Thanks for your time.

Hi Martha, I have the same question. Can you please put me through to your contact. Much appreciated!

I own 3 places in Pigeon Forge. I live in California and your ROI is a lot stronger in this area compared to many vacation destinations across the country. I have helped a few friends that have purchased in the area as well and this is my advice.

You need to wear two hats when you are shopping:

Hat 1:  The Investor Hat.  This is doing all the correct due diligence on the home and  the area to make sure that it meets the specs of what you are looking for.  You can get a lot of great info on the history of a home or comps in the area to get a good sense of how it will perform. From there you need to work on getting a good deal on the buy side and ensure you are getting lending terms.

Hat 2: The Guest Hat.  This is the less obvious hat but in my experience more important. You need to review the area like you are booking your own vacation. Jot down a list of 5-6 different places that you would book for your own personal vacation. Then ask yourself why? what are the consistencies you are noticing with your selections? Make sure these items flow through in to your needs list when you are shopping for a home.. this will help you ensure your home is getting the best mix of occupancy and nightly rates as it will be a more sought after home by guests.

Keep both hats in mind and you will be off on the right foot!

Does anyone who owns in PF/Gatlinburg area own other VR's outside this area/state with similar returns??