All Forum Posts by: Shawn McCormick

I've helped a few dozen buyers purchase in this market and we've never paid a premium for future revenue. If you property is generating a solid income and is heavily themed you can be at the top of the market, but not like what you have outlined as in a commercial property. Most agents will price one 5 bedroom the same as another and they will have wildly different qualities of furniture, location and revenue. To the buyers agent and the public, they have to figure out how to justify the price and you will have to prove it. To an appraiser and lender, the furniture has no value and there is no guarantee that all of the bookings will actually show up and pay. The PM could transfer or cancel them or the guests could decide to stay somewhere else once you inform them of the new ownership. 

It is a bonus for a buyer to walk into bookings after a purchase and give them some piece of mind that they are getting enough revenue to cover the first couple mortgage payment, but thats about it. I've literally shown hundreds of STR properties and they have supplied me with a P&L maybe 15 times. If you have performance history that is tangible, that helps too.

Best of luck.

@Aaron Rodante Glad you found the forums, welcome. I'm in Orlando and a full time Realtor and serve on the board of CFRI, the local chapter of the National REIA. You should consider joining to meet and network with other local investors. My assistant is licensed in Tennessee. Please reach out if we can be of any help.

Best of luck!

I can provide a fantastic cabinet guy that caters to investors specifically, very involved in REIA's and is an investor himself. He's done all my flips and for dozens of others of friends. PM me if you still need help.

Best of luck

@Carlos Garcia can you afford to keep them as rentals? Your tax burdon will be less if you can keep them for 12 months and a day, maybe a rent to own scnerio?

Have you considered offering buyer incentives like buying their rate down? This could be a cheaper option depending on the cost of your money (are you using hard money?). Look at the comps that have recently sold and see if they had to offer concessions. Reverse prospect the area for recent cash sales and reach out to them to see if they are looking for other properties. 

Send me the addresses and I'll look them over. 

Best of luck!

I recently bought a rental in Ohio. I paid cash $78,000 and put about $35,000 worth of rehab into it, so all in $115k. Looking for best option to cash out refi. I think it would appraise for around $140kI have only owned it since March, so very little rental income. What loan type (DSCR or conv) should I be looking at and what rates?. Hoping to get 80% back out.

 You have to think like an appraiser would. Start in the same neighborhood, if there aren't any, go out to 1/2, 1 mile, 2 miles IF needed. Don't force the comps. Once you've found them in the geographical area, then you must find as close to age, beds, baths and sqft as you can so as few adjustments need to be made. If it is densly populated and most homes are similar age/size and you still cant' find any, then you can start looking back more than 6 months if needed.  All the while keeping within the same zip codes, school zones and not crossing any major roadways if possible. 

@Katelyn Bethmann Welcome to the forums. Always happy to connect here too. I'm in Orlando if you ever need help down here just reach out. 

Best of luck!

@Conrad Legé In addition to what others have said, I would call the listing agents of the pending listings that you are trying to use as comps. Find out what they are under contract for and if there were any concessions. This will help with your comps knowing that they will eventually be used in your appraisal. Depending on how old your current sold comps are, they may fall off by the time you are done with yours, so the pending will be valuable.

@Prabhash Shrestha this is going to be tough, I analyze a ton of deals for my investors and most properties just don't make sense and it's not getting any better as home values appreciate and rents aren't keeping up. If I do find something, it is usually because it is priced according to condition, but once you value add and bring it up, you've now spent more cash. 

New construction may be an option, many builders are offering rate buy downs and closing cost assistance and then you get quicker appreciation when they continue to build out the community. That may be worth looking into. 

Best of luck.

@Juliette Olsen I would be happy to recommend a couple of PM's here in Orlando that I personally know and use. Location may factor into who may be the best fit. Let me know if you once you come to a decision. 

I personally own 3 doors OOS and self manage. I don't really want to, but the rents in the area are pretty low, and its not cost effective for me at this point. However, I also, admittingly do not know the laws as well as I should and that could come to bite me one day.