All Forum Posts by: Richard Elvin

This is one of the reasons I would be very hesitant to allow an arbitrager access to my property. The home owner, not that arbitrager, is stuck with the fine. Even if the home owner wins a judgment against the arbitrager, it will be hard to recoup $180,000.

"The city arrived at the $180,000 fine based on a $500-a-night penalty for each of hundreds of nights it tracked as booked at Tao's property, according to documents submitted to the City Council."

Glad you are doing well! 

Please stop tagging me in a thread from a year ago. Thank you 

@Zachary Petrak I would disagree with your statement that, "... turnkey may be a better starting point for new REIs.". I would househack over turnkey. Turnkey doesn't really teach you about investing, turnkey is usually in neighborhoods that see very little, if any, appreciation. If you decide to do turnkey be very diligent. Look at the history of the house on Realtor/Zillow/Redfin and see how many times has it sold and at what price. Same for the neighboring houses. Does this house, or others in the neighborhood, keep getting sold at close to the same price? 

This is an example of a non-appreciating "asset". https://www.zillow.com/homedetails/785-Dallas-St-Memphis-TN-...
Sold in '01 for ~$10k
Sold in '02 for ~$55k (That's awesome appreciation or an unsuspecting buyer geting ripped)
Sold in '04 for ~$61k (I would suspect foreclosure sale here as it quickly sold again for substantially less)
Sold in '04 for ~$21k (This is probably it's actual value and someone in '02 got ripped off)
Sold in '23 for ~$26k for an appreciation of ~24% over ~twenty years that's roughly 1.2%/year

This is a random house on Zillow: https://www.zillow.com/homedetails/766-Neptune-St-Memphis-TN...

Sold for ~$98k last May and sold again last week for ~$40k. I wouldn't want to be the buyer at got in at ~$98k. (I don't know anything about this house or the buyer(s))

Just a couple of examples to show you part of what my due diligence would be. 

I hope this is helpful and not confusing! 

This is a much more detailed description. Very helpful in understanding what you are wanting to accomplish. I think part of the response that made it sound sketchy/fraudualent (no one said criminal) is that your initial post had very little detail. The inference was that you wanted to somehow "get around" a lein without paying it off, I'll grant you that maybe that inference wasn't warranted, but that's where it went in my head. :)

Thanks for taking the time to flesh this out! I'm not an expert in this, so I will bow out. 

Best of luck in getting this resolved!

@Jackie Linne "I created a new Single Member LLC in Ohio for rental property. However the property is still under my name,...". That's pretty ambiguous. That could be a classic example of mixing monies, thereby rendering the LLC pointless, or it could be setup as a property management company with paperwork showing that it is renting out the property on behalf of the owner. (I don't know what the licensing requirements are in Ohio, but if the LLC is renting out property it doesn't own, there might be licensing requirements to act as PMC).

I think a couple of background questions would shed some light on this:
What is the purpose of the LLC?
What is the benefit of the LLC over an umbrella insurance policy?

I would talk with a CPA well versed in real estate. It's my understanding that a single member LLC doesn't really change taxes.

Lots of info here on BP, but it will take some searching. Training/workshops are useless on a national level as almost all aspects are very state specific, and often county/city specific. 

Welcome to BP!

@Rashid Khalil This still sounds really sketchy.

Solar company installs panels for ~$35k and attaches lein against the property to ensure payment. This lein wouldn't be removed until all payments are made, just like a mortgage. I think this is where things got a bit messy, the lein likely isn't from the arrears, it's most likely from the origination agreement for the installation of the solar panels and probably has a "due on sale/transfer/whatever" clause.

Now you would like to purchase the house, but without paying off the solar company's lein. You are attempting to move the lein to another collateral and then back to the property after sale. 

Is my understanding correct to this point

Think of this like a mortgage lein, would the bank go for you substituting their collateral to another asset and then transferring it back without paying off the mortgage?

I would work with your bank and the solar company to see if the lein can transfer as junior to the mortgage lein. 

I've really enjoyed reading this thread! Thank you to all of you that provide the depth of knowledge that you do!

@Troy P. Another option write up a lease option, then sell the house to an investor that is willing to rent it until she's either ready to buy or she fails to buy. Since it's cashflowing, and it sounds like the loan is assumable for an investor (Maybe?), that could be a win-win-win.

@Zachary Rosa You are asking two different questions, "I bought the house for $700k and believe it is work much more and want to do a cash out refinance. I know commercial properties are valued based on the income. Is there anyone who will lend on an STR/residential property based on the income?".

First question, "I bought the house for $700k and believe it is work much more...". The house will be appraised as an SFR and that is what the bank will value it at. What it is worth to someone with a particular interest in it may be entirely different than what a bank will appraise it for, think of small poor quality houses that have been rezoned to commercial, the bank will value these as is while an investor may look at it as what they could turn it into.

Second question, "Is there anyone who will lend on an STR/residential property based on the income?". Maybe, I believe a DSCR loan will look at the income vs PITI and base their refinance on those numbers. I would search on these forums for DSCR loans and read up on it. I would also look for the responses that are actually informational vs "DM me". (caveat with that, one can only be generically informational without running afoul of self promotion rules. If all the person ever posts is "DM me", personally, I view them as looking for business vs trying to help)

I hope you find the answers!

Wasn't this exactly what the politicians wanted though? The argument was that STR's are artificially increasing prices beyond what owner occupants can afford. At least that's what I thought. I could be wrong. :) Not arguing for that, just that's what I thought they were saying.

I was going to say exactly what @Bruce Woodruff said. He's (the bill sponsor, not Bruce. lol) trying to make it appear that he's negotiating, just to get the bill passed. It's a distinction that doesn't change the effect on full time STR's. Does anyone know if the "hotels that convert to privately owned units that are taxed as residential but still operate like a hotel." is even a real thing? Are there documented cases of this, or is it just a strawman argument to get the bill passed? It would seem that zoning wouldn't allow that hotels to convert to residential, but IDK.