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All Forum Posts by: Sequoia Pedersen

Sequoia Pedersen has started 2 posts and replied 7 times.

Post: Blue Ridge Retreat

Sequoia PedersenPosted
  • Rental Property Investor
  • Posts 7
  • Votes 4

Would love to know if you went with a construction company or contractors for the rehab if you don’t mind sharing?

Post: Blue Ridge/Ellijay, GA

Sequoia PedersenPosted
  • Rental Property Investor
  • Posts 7
  • Votes 4

Thank you for the response! I’ve done a little looking and researching in the dahlonega area, I’ll take a closer look! 

Post: Is a HELOC considered Capital Invested?

Sequoia PedersenPosted
  • Rental Property Investor
  • Posts 7
  • Votes 4

@Chris Davidson, thank you for the response. That makes sense. I'm just trying to determine if the property will cash flow! I appreciate the response!

Post: Is a HELOC considered Capital Invested?

Sequoia PedersenPosted
  • Rental Property Investor
  • Posts 7
  • Votes 4
Quote from @Jonathan Schwartz:

Hi Sequoia,

I've done this in the past, and I personally run it with only the 25K cash invested since that's the only amount of cash you/I personally have put into the deal. Then, on the expense side - put in the minimal payment for the HELOC (P+I).

This way, you'll know both if your rent will cover all of your expenses, and the reduction in free cash flow for the mortgage payment of the HELOC will still be factored into your CoC ROI.

Hope this helps!

Jonathan

Thank you! it does! So if the purchase price of the home is $400,000 and I use 50K from a HELOC, and then 50K in cash...when I run the numbers do I run it as Purchase Price (350K -- to account for the HELOC), with 50K in cash down, and then put the expenses for the HELOC in the expenses area? 

Post: Is a HELOC considered Capital Invested?

Sequoia PedersenPosted
  • Rental Property Investor
  • Posts 7
  • Votes 4

When you run your numbers for calculating CoC ROI, do you consider money used from the HELOC as cash invested if you drew from a HELOC for a down payment? i.e. If I purchase a 500K house, and I draw 100K from a HELOC and do 25K Cash for a conventional 25% down payment, when I run the numbers do I run it as 125K cash invested, or 25K Cash invested? In my mind I would run it as 125K, but want to make sure I'm doing it correctly.

Post: Blue Ridge/Ellijay, GA

Sequoia PedersenPosted
  • Rental Property Investor
  • Posts 7
  • Votes 4

Hello! 

I'm just starting out on my REI adventure, and I am interested in the North Georgia area. For those who currently own in the market? How is it fairing with STRs. I'm looking for a mountain area where the cost of entry is not astronomical, where I can also have it serve as a vacation home. I heard the market there was on fire in 2021, but wondering if those who purchased an STR during that time frame have seen a significant cooling/slowing down of STR occupancy in the time you've been up and running?

For STR, what type of buffer if any do you use when conducting deal analysis with regards to occupancy? I.e. if you see that a paid airdna subscription shows 80% occupancy in a market for STR, do you plan to 70% to compensate for a worst case scenario?