All Forum Posts by: Kyle Southard

I'd agree with everyone here: this is your property. Also, consider fleeing the state of California ;-)

Anyone have insurance advice for a homeowner who is handing his SFH over to a short-term rental property manager for a year?

He's paying me $1840/mo plus security deposit with the agreement that he can sub-lease it via AirBnB, HomeAway, etc., for a year...Of course I have to have homeowner's insurance of some kind, but any advice on exactly what type/level of coverage I'll need? The AirBnB/HomeAway/VRBO platforms all offer insurance, plus the property manager has short-term rental insurance for his business (I'll look closely at his policy, of course). That's a couple layers of insurance before any claim gets to me, right? ...but I know insurance ain't that easy. Open to thoughts, especially if anyone's already done this...thank you in advance!

Please note: I've hosted on AirBnB before and had nothing but great experiences...I believe short-term rentals are easier on homes than long-term, but I don't have the time to host on AirBnB myself, therefore the arbitrage with the middle-man.

@Christopher Phillips @Mike McCarthy thanks for helping me think through this guys, I appreciate your response. Great points!

In a city in the South, I don’t yet have a buying agent, but am looking to buy a piece of property that is currently overpriced (has been for over 5 months). I believe the property’s listing agent would be willing to work with me on acquiring the property more if I go through her as the buying agent, too...are there any flaws in that thinking? I appreciate your insight!

Getting 3 houses under contract in 2 months does not necessarily equal getting 3 good deals in 2 months

This stuff happens a lot with AirBnB...He probably never noticed the mirror was chipped, and is upset with his landlord for ending what sound like an amicable lease with “Hey you owe me a hundred bucks” or something. Of course he’s unjustified in his approach, but if he really rented for a long time and was otherwise a good tenant, he’s just indignant to have gotten hit up for a simple expense like that.

Not saying his pretend gangsterism is OK, of course—I’d be perplexed if I were in your shoes too!

@Ebony Johnson that’s a great question. Of course, “It depends” is a simple answer, but I think it’s important to decide WHY you’re investing: to build wealth long-term through appreciation (decades) or establish financial freedom ASAP with cash flow (years).

I think I’d won the lottery if I were able to invest $15K in a property that averaged a cash flow of, say, $100/mo after expenses, as I’d get appreciation AND cash flow. What stock or certificate of deposit could spit out that much of a dividend so consistently?

But for real, where can one find a rentable house for $15K?

Also...another scenario: Spouse 1 uses an FHA loan in 2016 on behalf of the family, but keeps the loan solely in his/her name...after a year or two that couple decides to buy a new home and rent out the old one. So Spouse 2 uses an FHA loan in 2018 on behalf of the family and keeps it in his/her name. Two legitimate uses of the FHA loan in my book...again, unless I'm missing something!

I'm just getting onto this late, but hopefully it helps for others looking for this answer...

I don't have any black-and-white text to back this up, but I'm sure it's legal for one spouse to use an FHA loan and then the other spouse to use the other FHA loan, as far as the guidelines are followed: in short, that the person using the FHA loan establishes the property as his/her primary residence for a minimum of one year.

I could see this working in a situation where Spouse 1 is military and Spouse 2 owns a small business. Spouse 1 gets assigned to a year at the Pentagon, and the couple decides to live separately for a year: Spouse 1 will live in DC and Spouse 2 will live in their hometown. Spouse 1 uses his/her FHA loan on a house in DC. Spouse 2 uses an FHA loan on a house in his/her hometown. I don't see how that would be breaking any rules...unless there's something I'm missing!

For what it's worth: I got a house under contract last week in the Springs, and it was 100% thanks to a good Realtor. Literally couldn't have done it without him, and learned the value in a good buying (and surely listing) agent in the process.  Would be happy to share what I learned if anyone's looking to move to the Springs!