All Forum Posts by: Nirmal Khanderia

@Lisa Bosserman, I am using Hospitable and happy with the software so far. Simple to setup and simple to use.

@Account Closed, I am in the same boat. 
20% down DSCR loan or bank statement loan is the way to go. Interest rate will be 1-1.5% higher than conventional loan since the risks are higher for the lender.

I personally prefer to have a separate bank account for each property for ease of accounting. Relayfi online bank allows up to 20 accounts at no extra cost.

@Sean Bramble, there are lenders who would do 15% down payment DSCR loans. You can optimize use of your capital.

You can search on this forum or on internet.

@Anshuman Vyas, I have one STR under contract in St George Island. I have been actively looking into and analyzing PCB market as well. It is one of the markets with great cash-on-cash returns overall. You need to analyze each property on its merits.

@Evan O'Brien, I think it is included in the closing documents with the lender.

The person who owns the property has to live there for the stipulated number of days.

The requirements will vary from lender to lender and different states.

Typically, for a vacation loan you are required to use the property for your personal vacation for at least two weeks every year and you need to self manage the property when you rent. You cannot use a property manager for renting.

Typical spilt is 50/50 for the amount of responsibility you are undertaking.

Even then bringing home $7,500 a year for all the work; is it worth? 

I use multiple data sources to evaluate a property.

One is AirDNA, then Rabbu and then the “enemy method” developed by Avery and Luke Carl.

Depending on one data source could be misleading when you are making so much investment.

@Mo Maktari

I also recently pulled HELOC on my primary residence. My plan is to purchase 3-4 STRs using HELOC as down payment over next 2 years. I have one property under contract in Florida. I plan to learn the ropes of this business at least for next 6 months and then start looking for the second property.

Also consider 10% down second home loans as well as 15% down DSCR loans in order for your HELOC $$$ to go further.
I am also planning to use the cash flow from the STRs to buy another STR or pay down HELOC so that you can use it again.