All Forum Posts by: Meredith Pacifico

Quote from @Luke Carl:

Conventional financing. 
LLC is a can of worms.
Do a cost seg if she doesn’t have a W2

Read a book called short term rental long term wealth 

I’m also just starting in the STR space. Won’t an LLC protect me from liability? From what I’m learning financing works much differently with an LLC but I’m wondering if it’s worth it for the protection it can provide 

I think COA would describe it better. After reading the article posted above, the problem could be that one LLC owns a large majority of the units.
Also, I looked it up on the property appraiser website and saw something that seemed unusual to me. Each unit is listed separately but when I look at the map view, they aren’t shown as individual parcels. The whole street is listed as common property with no owner listed. Would we own the land the unit is on? 

Quote from @Chris Seveney:

@Meredith Pacifico

Yes. Here is a good link that will explain it for you.

https://fhmtg.com/2019/02/14/what-is-a-non-warrantable-condo/

 Thanks, that's very helpful!

We're looking at one side of a duplex on a street that once had an HOA, but it has dissolved. The unit was under contract but it fell through because the buyer's bank/financing said the unit was non-warrantable and therefore hiked the interest rate up. My mortgage broker has not heard of this being an issue so long as the unit is insurable. Our realtor had never heard of the term before, either. Has anyone here ever dealt with an issue like this?

I just listened to Episode 109 on the BP podcast and the guest (an attorney) covered this topic really well. The questions it raised for me have to do with financing. My LLC is brand new (read: no established credit) and would only qualify for commercial loans. My husband and I could qualify for better financing, though. I'm interested in what others here do about that issue.