All Forum Posts by: Matthew Fermino

Hi, I'm looking for some advice on the best way to finance a project I have on one of my STR's and whether I should do a refinance, a home equity line or something totally different.

I have a short term rental that is a two family property in a beach town in Wells Maine. Each side of the duplex, is a two bed one bath that I typically rent out as the whole building. After taxes, all expenses, etc. I usually profit about $500/600per month.

I have an opportunity to knock it down and build up and more than double my profitability.

The property today I owe 480k with a 5.375 interest rate and 25 years left. The property is valued now between 950k and 1million.

I also have my primary residence that I owe 675k on with 25 years left on a 2.9% interest rate. That Home is now worth about 1.4 million but I already have 175K HELOC on that.

I’m looking to figure out my best financing option as I need about 350k to fund the project.

I am building an Inlaw apartment for my mother and trying to determine what the best way to finance this would be. i'm fairly certain I will just try to find the best rate for a HELOC but I always get great advice I wouldn't have thought of from the BiggerPockets community here's my situation

I have two properties today.

My primary residence where the in-law will be built that I just refinanced down to 2.75%. I owe 680K and it is worth about 950K.

I also have a vacation rental that I Airbnb. It is worth about 680k and I owe 500k.

The Inlaw addition will be about 150K. I’ve already checked and have approvals with the town I just need to figure out the financing.

I'm thinking a heloc that will let me take 85-90% LTV.

Thanks in advance for any additional Or creative thoughts

@Mark Page @Ryan Riches

I think that must be it, I put the listing up myself on VRBO and have been getting direct booking higher then they said I should list it for. My main reason for using them honestly is because they said they could rent it in the winter and I didn’t want the hassle of setting up the cleaning and maintenance but they aren’t even doing that.

I have a co-op in New York City and I’m looking to see if anyone has refinanced a co-op and what the best places to look are as many banks don’t deal with co-ops? I have a 2.75 interest rate quote on a 30 yr fixed now from Wells Fargo, was thinking local credit unions perhaps.

@Ryan Riches I will certainly reach out. @Mark Page I agree with you on the rates, I was shocked at how underpriced they were thinking for the property. I put it up on my own on VRBO and within the first 3 days had bookings for higher then what they said i could ever list it for. And when the person booking it contacted me they said thanks for having priced it so reasonably. 

I just purchased a two family rental property on the beach in Wells and looking for a good property management company. So far the ones I have talk to seem to take a much higher percentage than I’m comfortable with? What’s the going rate in southern Maine beach towns

thanks this is helpful, @lukecarl that enemy method link is really interesting. @Carrie Benoit the property that I am looking at is in the business district which I believe still allows the STR's but I was interested in your point. I see alot of AirBnB's that are outside that zone. Is it a matter of the town restricts it but hasnt taken action yet? @Carlos H DeOliveira on the university front that is what I was thinking on the long term rental options but with schools not going back thought that may take a hit.  

I have a 1031 exchange set up and I’m looking into buying a short term rental with the potential to pivot to rent long-term if need be in either Narragansett or Newport or one of the beach towns in Rhode Island.

Obviously it’s an unprecedented time but does anyone have any data on occupancy rates and how things have been affected in those areas

I am looking to build a two bedroom in the apartment to move my mother into our home but have a separate space for her. I am selling the condo I have that she currently lives in and doing a 1031 exchange into another investment property. I don't think there's a way to roll any of that money into an Inlaw suite so I'm looking for the best way to finance this. I don't have quite enough equity to do a HELOC as I owe about 675k and current value is about 950k.

Estimates from my contractor who I’ve worked with in the past is about 175K for the addition.  I was considering options like Hardmoney (never done this) home improvement loan (never done this) or Finding a credit union or bank that would give me the a rehab loan based on the post rehab value loan (never done this either)

Any advice would be super helpful, I’ve got a lot of balls in the air right now. Thanks in advance as always

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