All Forum Posts by: Megan Arzt

I am under contract on a house that I will be able to nightly rental. I've been successful on my other 2 nightly rentals. I do not have the cash for the down payment. I was going to HELOC one of my investment properties (title is in the business name), had conditional approval, then the bank came back saying that they won't do a HELOC since I have more that 4 investment properties (I have 5 and my primary). Any thoughts on how to get funding would be appreciated. My traditional lender says I can get the loan if I can come up with the down payment. I have also applied for a small business loan, but am waiting to hear back (I'd still have to come up with a down payment). Thanks for any advice people have on how to fund this deal.

I am under contract on a house that I will be able to nightly rental. I've been successful on my other 2 nightly rentals. I do not have the cash for the down payment. I was going to HELOC one of my investment properties (title is in the business name), had conditional approval, then the bank came back saying that they won't do a HELOC since I have more that 4 investment properties (I have 5 and my primary). Any thoughts on how to get funding would be appreciated. My traditional lender says I can get the loan if I can come up with the down payment. I have also applied for a small business loan, but am waiting to hear back (I'd still have to come up with a down payment). Thanks for any advice people have on how to fund this deal.

They are being used as nightly rentals, not residential.

Thanks, that was my thinking too.  And with 6 properties (8 doors), I think I'm in it for the long haul.  I just want to keep growing and would probably 1031 exchange if I did sell.

Thanks @Jean Norton.  I would also love to see your webinar!

I have 2 nightly rentals that I just bought and put into use this year.  They are sort of a gray area since they are not being used as residential dwellings, but could be.  My accountant seemed to think that I could choose which way to depreciate them (commercial or residential), but that once I make that decision I will have to stick with it.  One argument that my account put out in favor of of the 39 years is that I'd like to keep buying properties and less depreciation will help my numbers look better to lenders.  Don't they add depreciation back in anyway when approving you for a loan?  I'd love to hear everyone's thoughts and arguments on the matter.  Thank you in advance!

Megan

@Jean Norton  or anyone else who might know:

Is it a huge issue when the foreclosure is occupied by the past owners?

Also, when there is "Title Information" included does that mean it has a clear title?  Should I still have my local title company do a search?  I'm not sure if there will be enough time or not for that.  

Thanks in advance

Not really, but I ended up being able to come up with all the money on my own.  Thanks!  

@Jen Parsons feel free to pm me.  I am more than willing to give you advice, etc.  Moab is growing and is am amazing place to live.  The hardest part would be management from afar - the currently management companies charge 40% for nightly rentals.  It's actually something that I have been thinking about getting into as there is a margin to undercut them there for sure.

Thank you all who responded.  I will put Colorado in the future.

I do have an umbrella policy in addition to my LLC.

@Jeffrey Breglio did set up the series LLC, so I assume the CO property is fine.

I have the Operating agreement and Statement of Authority from him (if I've got all the terms correct).  I wasn't sure what the record deed is.  Is that the operating agreement?

Thanks!