All Forum Posts by: Myka Artis

Congrats!! The BRRRR to STR model is one of my favorite strategies in real estate right now.

@Jeff Copeland Thanks, man! That was the answer I needed!

I'm going to use a HELOC to BRRRR due to not meeting the minimum loan requirements for hard money. My question is will a lender say my DTI is too high to refinance or can I let them know the refinance is to take care of the HELOC? Also, would there be a way for me to lien the property so the refinance goes straight to pay off the HELOC? Thanks for your input.

Hello Alice!

I have quite a few connections that would be able to set up the property and manage it. You can check the cohost market site or just send me a DM. My partner has a management company in Dallas as well.

I'm in the exact same situation. A hard money lender quoted me an outrageous fee for a property but it was because the property didn't meet the minimum requirements. I ended up using a HELOC to purchase the property. I'm now looking for rehab funding. I may have to use the rest of the HELOC to rehab. My concern with this is I don't want my DTI to be too high when it's time to refi.

I was thinking in the future use private money for purchasing. 

You can use something like Yourporter to get them to book directly to your website. Charge them a security deposit, ask for ID, and you're good to go. 

The ultimate goal is to have your own direct booking website anyway. Good luck to you.

I'll be following this post as well. I've been looking to break into the Memphis short-term rental market for a while. 

@John Mocker 100% agree put it in writing. That's why you have to have your business structure created first and then get the policy. There's a lot of confusion on business structure in the STR space. I also see you're in the Gatlinburg market which is considered a VR market so the business structure is completely different. One policy might suffice but I haven't dabbled in VR markets on the buyers side as of yet.

Josh is actually 100% correct. This falls into how to properly structure your STR business. If you run an STR business you should actually be doing it from a completely separate entity than that of the homeowner.

Ex: I own a home and I put a home owners insurance policy on the home. That covers me. I then lease that home to my short term rental company on a corporate lease so that company pays me rent every month. My short term rental company then covers themselves by putting a short term rental policy on the home through proper, CBIZ, etc.

Now let’s look at the benefits of doing this. If anything ever happens to the property myself as the landlord is covered, the short term rental policy adds an additional layer which is completely separate from me, and if a reservation comes in from Airbnb I now have a 3rd layer of protection.

So yes keep your homeowners insurance and structure your business correctly.

Proper & Safely.