All Forum Posts by: Michael Metzger

I’m curious to hear people’s take? I’m looking to convert a yearly lease rental property in Salt Lake City to an AirBnb by the end of 2021. But I’m pondering the following:

During housing/economic downturns, what do you all think will perform better? Short-term or long-term?

I’m appreciate the input as I consider my options venturing into a new type of rental.

I’m curious to hear people’s take? I’m looking to convert a yearly lease rental property in Salt Lake City to an AirBnb by the end of 2021. But I’m pondering the following:

During housing/economic downturns, what do you all think will perform better? Short-term or long-term?

I’m appreciate the input as I consider my options venturing into a new type of rental.

Lisa,

I sent you a PM. I may or may not be able to help you/refer someone out to you for WA. Hope it helps

@Moises Diaz I agree with @Shawn McCormick, that is kind of a difficult question to answer because there are so many other circumstances that are unknown. I think the question to you would be what are you trying to accomplish? What does that life look like? Then you can reverse engineer and come up with some options.

@Djuan Snowden Absolutely, I would get current on taxes. You have time to purchase property in the future and the last thing you would want is for the IRS to be looking through your future deductions because of any red flags from past unpaid taxes. I also echo everyone else about debt to income, etc.

@Amanda Jacobellis Those were the points I was trying to make, but I think you articulated it a little better than I did. Once you are ready to use an agent, especially a really good agent that will go the distance and really do extensive research for you, I believe they are worth the signed agreement. Especially in light of what others stated about it being not enforceable anyway. It just shows that you won’t take all their research and time and go to another agent with it.

@Cameron Leckliter The exclusivity agreement is very typical, but usually only signed once you have agreed to use his services. It makes perfect sense if you think about it- showing property and doing the research is time consuming and that agent wants to make sure he/she is not wasting their time- they deserve to get paid if they do all the work. 

@Brenda Maddox It depends on the current mortgage interest rate and whether or not we are talking about a primary home? If its a primary and you wouldn't save much in the refi, I might consider the HELOC. If you are talking about a rental property, then you might consider a refi- if your rate gets cut quite a bit. Any other thoughts from people out there?

@Salvatore Lentini It’s basically a converted shed- 10ft x 14ft. Thats really common where I live. Think tiny home, but more of a barn style shed. It would only cost $10k, but an additional up to $20k for the build out. Because it’s on our property, we would do the cleaning, etc. Possibly hire some neighborhood kids to do some work when my wife and I cannot. So let’s say cash flow of $1000/month.

And zero financing.

Does that change any thought process? What do you think?

Hello all,

I’m contemplating a cash out refi versus a straight 30 yr refi for a rental property. I’m pretty sure I know the route I’m going to take, but I would like to hear a bit more from this community to see if I’m missing anything.

If I go the traditional refi route, I would shave off about $400-$500/month (give or take what rates do in the next month) from monthly mortgage and cash flow $600-$700/month on the property. Seems pretty great.

If I go with a $30k cash out, I would only be shaving off $200-$275/month from monthly mortgage. Not as great.

The $30k cash out would go towards purchasing a small Airbnb loft style unit on my primary property (not ADU, because its under sq. ft. requirement for permanent setting to land) that can be rented out. Expected average monthly short-term rental would be around $1200/month based upon comps in the neighborhood. I believe I will still be able to use the loss from purchase of unit to offset rental income from rental property- unless it not being on a foundation is something I missed in the IRS code for a technical rental unit??

Anyway- $30k out or straight refi is my question??

Thanks everyone!