All Forum Posts by: Steven Wachtel

Honestly I think that's a great move, and I wish I would have done it. I bought a condo in Destin while I was there at Eglin, but I never lived in it and I'm still stuck with an awful rate. If you can get a primary residence rate on it and STR it when you move out, you'd probably be sitting pretty. Just keep in mind that your insurance will probably go up when you change your policy to cover STRs. Also watch out for any HOA restrictions of course, and be aware that interest rates may be a lot higher for a non-warrantable condo - although I'm not sure how that would play out if it's your primary.

@Andrew Zamboroski @Simmy Ahluwalia

I’m at 9%.  It was as my first investment deal, so I did all kinds of mental gymnastics and rationalization to help it make sense at the time.  Lesson learned.  

I bought my first STR in Destin, FL in Nov 2022. It's a non-warrantable condo, so I just accepted my horrific rate and I'm hanging on until I can hopefully refinance and see some real cash flow. At the time I bought it, I lived just a few miles away and I didn't want to play any games with trying to call it a "vacation home" in hopes of a lower rate. I know some people may try to game the system, but I have absolutely no interest in doing anything that even hints at mortgage fraud.

Now ~18 months later, it's been in service as an STR for about one year. I'm now stationed in Colorado, and I definitely wouldn't mind spending two weeks in Destin every year in the off-season. Is there anything that would prevent me from refinancing using a vacation home loan now? I definitely would have done that in the first place, had I lived a reasonable distance away when I first bought it. If it is possible, is there anything else I should consider before talking to lenders (namely, any tax implications). Thanks for any input!

I'm just getting started in the Destin area as well. I've got the benefit of being stationed here, so it seemed like a good place to start.

One thing to keep in mind, which I've learned very recently, is that most of the condos here are non-warrantable. That may limit which lenders you can use, and stick you with slightly higher rates than you might expect.

I'm having trouble tagging him, but Matt Gardner has a team of agents that are crushing the STR game here. He's also got a great local meetup if you ever end up in the area.

@Deb S. @Mark Fein

Thank you both! That makes me feel a little better.

I understand that the rate is tied to the prime, I just thought I was "locked in" at the lower rate, at least initially, based on the "lock-in agreement.". Go figure. Which begs the question: What's the point of the lock-in agreement?

Deb, no, I'm not planning to draw from it in the immediate future, just wanted to have it available if I need to supplement my cash savings for a down payment.

I signed all the closing paperwork for my HELOC on Monday, July 11, so today is the last day of my three business days to cancel. I was reviewing the documents again this morning and noticed that the interest rate in the closing package is 0.75 percentage points higher than what was on my Lock-In Agreement from June 10. Bad on me for not catching it during the closing - it was at my house with a mobile notary and the whole thing was very rushed. Lesson learned. I plan to call today as soon as the bank opens to see if they can explain what happened.

What would you do?  This is on a $100k line.  The lock-in rate was 6.7% (I realize that's still not great) vs 7.45% in the closing paperwork.  Are there any other ramifications (other than a lot of wasted time and potentially losing the appraisal fee, title search fee, etc.) that I should be thinking about?  I did pay the closing costs up front, which I now regret also.  I realize that in the big picture, the difference in rates isn't going to make a huge difference, but it has me questioning the lender.  Maybe I'm just misunderstanding how the Lock-In Agreement works, but it seems pretty straight-forward (Florida Statute, Chapter 494, Section 0069, for reference).

I really appreciate any input.  

Thanks everybody!  @Matt "Roar" Gardner, good to see you here!  I made it to your last meetup at Props - we met just briefly at the end.  Honestly I'm not crazy about the idea of STRs at the moment since I don't think I currently have the bandwidth to self manage.  Do you see many folks outsourcing the management and still cash flowing?  

Hey all! I've been lurking for a while and figured I should introduce myself. I'm a flight test engineer by day, currently stationed at Eglin Air Force Base, FL (just across the bay from Destin). I'm living in Niceville, but looking for my first BRRRR in the Ft Walton Beach area since it's a little more affordable. I'd like to invest back home in Ohio eventually (I lived in both Columbus and Dayton for about 5 years each), but I'm much more comfortable starting with something I can see regularly. Not super interested in STRs at the moment, since I think I would have a hard time keeping up with the management. Anyway, looking forward to getting more involved here!