All Forum Posts by: Melissa Allen

This is more of a financial advice question in order to prepare for the next deal. (We only have one STR and have had it for two years.) My husband and I each have retirement accounts through work, plus his 457 and my 403b. We're both 47, both with W-2s. We are closing on a HELOC on our primary home this week. Any advice on if we should use it to pay off our loans against two of our retirement accounts (that we took out for the downpayment on the first STR) in order to lower the monthly bills or if we can/should cash out one or two of our retirement accounts (457 and/or 403b) and pay off the loans?

We have been able to pay the loans back for two years so far and have three years left, but have one kid in college and two more shortly behind. We’re trying to figure out options and taxes/penalties/etc. Also, if we cash out the 457 and/or 403b and have taxes taken out, could those taxes be returned when we file our returns? Because of material participation (I self-manage)/bonus depreciation/cost seg, we’ve been able to get all of our taxes back both years so far.

We cannot keep going the way we have for two years, so that's not an option. The HELOC was the original plan, but it was going to take too long to close so we did this instead.

My 403b has a value of roughly 85k and has a remaining loan balance of about 22k… about $700 per month

My husband’s 457 has a value of roughly 180k and has a remaining loan balance of about 30k… about $850 per month

Since the HELOC is a variable rate, I'm hesitant to use a large amount from that. It starts at 8% rate. Debt payment starts at $14 per month for each $1,000 borrowed.

Also, I’m eligible to retire at 53 in Texas and will to work somewhere else.

Any advice would be great! I’m not even sure where to start. Thank you!

 I forgot about that. I've heard him on episodes of The Short Term Show and maybe Bigger Pockets. I also have his book The Book Direct Playbook to read next. Good timing! Thanks!

 Just curious... what would be the benefit of Boostly over RankBreeze? Any ideas? 

Thanks!

 Definitely looking to add more kid-friendly outdoor seating/climbing wall for families with young kiddos. Possibly a second bathroom in the future, but not sure if that would be worth it.

 I've created bullet points, changed wording often, rearranged pictures periodically, adjusted prices (super low for my area). Making changes 1-2 times a week. I'll change it to daily. Any other ideas? I would appreciate any advice. Thanks!

 Bought used and fully furnished. It's about 1,076 square feet. Looking to add a 2nd bathroom in the next year, and possibly a loft.

We've had our STR 2/1 cabin in Broken Bow, Oklahoma for over a year. Superhost on Airbnb and Premier Host on VRBO. My husband and I are still working our W-2s (and extra), but we can't move on another property until this one is at least paying for itself. Is something like RankBreeze really worth the price to help get our property seen more often? When going incognito on booking platforms, our place is really difficult to find. I've called support for Airbnb and VRBO many times -- super friendly but no real difference.

I would love to hear from those familiar with this option (or any similar option available). Thanks!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $635,000
Cash invested: $85,000

Cabin short-term rental

What made you interested in investing in this type of deal?

Listening to Luke and Avery Carl from the Short Term Show and Bigger Pockets podcasts helped us decide this path.

How did you find this deal and how did you negotiate it?

We used a realtor well-acquainted with short-term rentals in that area.

How did you finance this deal?

We used a conventional loan from our bank, using the income from our W2s.

What was the outcome?

Rental income is doing well. Tax advantages have made it a solid choice.

Lessons learned? Challenges?

I absolutely love serving as a vacation rental host. People frequently ask for recommendations for kids’ activities, etc. and I’m able to give our favorites.

As for challenges, we expected a slow start so it wasn’t a surprise. Made sure we had solid reserves and weren’t getting in over our heads. Certain months of the year it only books on the weekends.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Cathy Craig was our real estate agent in Broken Bow. Very helpful.