All Forum Posts by: Michael Rendon

Hello all, I wanted to open up a topic for discussion that has been top of mind for me lately, which is if your goal is to attain a RE rapidly, should you go STR/MTR or LTR?

I am a little mixed on the topic as I can see pros and cons to both routes when it comes to building a portfolio with speed. I currently own two STRs, they cashflow higher than I would expect from a LTR, and this helps to get funds for the next purchase which is primarily why I chose this route. This high cashflow is great, but it is being countered by slowing down my ability to get more financing for my next purchase as I typically need 1-2 years on a tax return to get rental credit from said STR when qualifying with a lender for the next purchase. This now has me considering a switch to LTRs for future acquisitions, since typically you can just provide a lease to the lender to get rental credit.

Curious to hear any and all thoughts on this topic, are there other options I should be considering altogether?

Hello all, I was considering a cost seg but my CPA is telling me that is it not worth it given the cost of my property. This seems out of line with what I see on social media so I was hoping to get some other folks thoughts. Below are some specific details... Thanks in advance!

I have a home I purchased in North Georgia in 2/2021. I acquired the property with an FHA loan and it was my primary for a year; purchase price was $350k. I lived in it for a year and since then it has been operating as a STR. I had it appraised earlier this year and the appraisal came back at $595k. I really need extra funds for another primary in the new year, so I am hoping that my CPA may just not be as educated on this topic, although it is worth noting the firm I use does focus on real estate investors so I was a bit surprised when he said a cost seg was not worth it.

@Erik Estrada right now I am exploring options still early, but the goal would be to acquire the land with the mobile home, and the stick built home. I am relatively new to real estate with only a few deals, and I have never considered a property with a mobile home so it was news to me that this will effect lending abilities. At the moment the only option I am seeing feasible (without paying all cash) would be to have the seller parcel off the mobile home, and make that a cash deal while financing the rest.

 Hey Darnell, we are not hiding anything, I am looking for more clarity from professionals on this topic. For example I have spoken with a lender today that said they cannot lend on a mobile home pre 1973, which has already given me more clarity. In no way is there any intent to commit fraud, just seeking information about lending and mobile homes.

Hello. I am looking at a property in North Florida for purchase. It has a guest house on the property. One home was built in 2014 and it is a stick built home, the other one is a mobile home from the 70s.

My agent says they can only except cash offers due to the year the modular/mobile home is built. I suggested we remove the value of the mobile home from the loan and qualify based off the land and stick built home, but he told me in order for the bank to finance the deal the mobile home would need to be removed from the property.

Can anyone help add some clarity as to why this is? I want to purchase this home with the mobile home, but it sounds like if I want to finance it that is not possible.

Hello I was hoping to seek some guidance on a bit of a dilemma I am in, thank you for any advice! 

I purchased a turnkey STR 15 months ago and it has been cash flowing since month one, this was an investment mortgage. I also purchased a home 12 months ago that I have been turning into an STR and it will begin cash flowing this March, this was a primary residence mortgage so myself and my family have been living in it.

We were hoping to purchase another home this summer using a primary residence mortgage. I am struggling to find a way to do this though because my lender says without 24 months history they cannot recognize the income from my short term rentals. Because of this, my DTI is too high to reasonably take on another mortgage.

Hello, I am a newer STR investor with one location up and running in St. Augustine Florida, and I am currently doing a house hack (live in renovation) of a cabin in Blue Ridge, Georgia that I am turning into a second STR. Any fellow investors in any markets but especially my markets please feel free to reach out!

-Mike