All Forum Posts by: Kevin Maher

Use the. LLC as it is the easiest and cheapers way. LLc and s Corp is about liability not taxes. You make a profit you are going to pay roughly 30%. So just put nit in a savings account after every deal. Multiple llc,s can be owned by a s Corp. Layers of protection from lawsuits. Any house in the llc would be subject to a lawsuit from any house. That is why most have a separate llc for each.

Ifnit is not permitted and zoned for short term use a appraisal would not give it any value.   Fnma requires the improvements to be legally permissible.  Each county zoning can be different.   If it is not legal they can sue on those grounds alone.  You can get private financing at higher rates.   Where this is zoned for they are great income producers.   But you want to do both structure short term. 

Get out now the market is turning. Reduce asking and break even.better than losing more if you wait.

What exactly are you asking .  You want to move the house?    Are trying get flood zone changed?

Bear in mind if there is a down turn in the economy while it might not effect housing it will effect vacationers.  The first thing that goes back to the bank in a down turn is the condo they don't need.  I have seen a graph on condo prices from the early 60's thru 2000 that compared us economy to condo prices in my market and every time there was down turn in the economy it matched the condo prices.  Now this was well before most people in this market rented houses.  It was mostly condo's during this time period but the trend would be the same.  If you are younger than 55 you have never seen what a real recession for 10 years looks and feels like.  

Don't forget there was a oil spill in the gulf of mexico in 2010. Vacation rentals went empty from Al to PCB in Fl for several years. So if you pick up one of those multi million dollar money machines better be able to feed it. And it is a hungry monster for insurance, taxes, HOA dues, and upkeep.

It is not uncommon in my market NW Fl on STR's. Value or purchase prices are 25% higher in STR zoning areas where income streams are 50% or more than long term. Yes there are more cost. The big question is: Do you think there will be as many people vacationing next year when we go into a depression. Prices plummet on vacation homes in recessions and depressions. It's the first thing that goes to the bank. You need a house to live in and a car to drive. You don't need a condo at the beach. I would recommend everyone to step back and look at the risk in the market today. It is not a good time to be buying. The risk out weighs weighs the upside in the next couple of years. The feds are taking out 2 trillion out of the economy by the end of the year and rates will be 5% I bet if not more. Next year will be higher. Should have been here in the 70's thru the 90's. You need to sit on cash right now; all you can get. The deals will be coming. Banks will back away from anything not primary occupancy.

Change lenders.  Regions bank does short term rentals for vacation homes all day long.  This is no different.  I have never used vemo so I don't know how it's tracked and reported.  Had a VP of a local bank that does these loans and he said he would go online and look at reservations on the vacation rentals.  

Time to sell to some other poor soul.  Or go to court.  Only two choices.

PCB market is red hot.  Between Pier Park and Walton county is a great deal.  PCB has dramatically changed over the past 5 years.  The very eastern end is where most the problems were.  This why the western end is booming never had the reputation, but there still is a lot of trailers around (150k) but site values have risen to 150k so you are seeing the crappy stuff be bull dozed.  Latitude Margaritaville project is coming on line in May with that there is going to be a large influx of buyers to the market due to St Joes' advertising.  Market to the west Walton Co is multi million dollar homes.  Very high end.  So it makes PCB next door a deal.  There have been 33,000 people signed up for info and a tour on 3,500 houses to be built in the Margaritaville project.  This project is 7 mile north of the beach.