All Forum Posts by: Stuart Penman

Hi Marylin - My wife and I are looking into an STR in Annapolis and on the hunt for a real estate agent and folks in the area familiar with how STRs do. This would be our second rental. Hoping to connect if you are still an agent and know the area.

 Thanks @Jonathan Taylor- I probably didn't frame this super clearly and might just be wrong about how things can work so thanks for your patience. Maybe I should reframe in terms of what our goal is and the constraints vs. specific tactics to get there. My wife and I are looking to get another property or several over the next few years if we can find a scalable/ repeatable framework for putting together finances, given the first looks to be going well. We want to wait to refinance the first property for a few reasons - 7 yr arm vacation mortgage so we have some time and a way better rate for now than anything available now etc but maybe theres a good reason not to. We have a good amount of money tied up there until we do refinance. So to purchase the next sooner than later we are curious if there is a good way creatively put together finances to cover the whole cost or most of a purchase and rehab of the next. We are curious about a DSCR or a combo of some loan to finance construction /rehab + downpayment that would roll into or refi into long term loan, I'd prefer not to use hard money or short term financing to minimize risk. I know I've heard of high ltv 90%+ and no money down creative financing on other loan types but wasn't sure if theres a way to do that with a DSCR creatively. I think construction to perm loans work in a similar fashion. Depending on the property for our next one, our income would prob support another vacation loan but that won't be scalable/repeatable long term unless we refi into a DSCR on the first one and then be able to do another vacation on the next and then repeat that way. Anyway- that's a lot but open to your thoughts on how you might get from a-b.

This is a DSCR newb Q. Is there any way to get a DSCR loan where instead of money down or to reduce the total up front $, we add sweat equity and use the equity produced by ARV in a BRRRR or BRSTRR to meet requirements. We recently wrapped up a BRSTRR and added a ton of value but can't refinance yet but want to keep the ball rolling. Apologies if this one is obvious, new to the topic and looking to learn.

Hey breaking into STR with my first purchase of a property. I know there are lots of important tax steps to take, but I don't have a CPA. Does anyone here have a reco. for a firm or someone they use? If it helps I'm based in NC and so is my first property.

We are planning to purchase our first str to list on AirBNB in NC. We want to finance it with a Vacation (aka second home) mortgage with 10% down and better rates. It's common, but we found many lenders don't know about it or might say they can do it but haven't done so before.  We are looking for a lender who has experience with this so they don't get shifty on us during underwriting.  We meet the rules for location, intent to occupy it personally for a part of the time, etc.  Any lenders based in NC or that lend in NC would be best. 

Side note - we also plan to do the downpayment and renovation via a HELOC, bonus points if anyone knows of an NC lender that does both.

Thank you

Hi I'm new to this, learning, and looking to clarify the best strategy. Apologies if this is in the forum and I haven't found this exactly yet. I'm looking.

I have found a number of properties with numbers that look like they will have substantial cashflow with minimal rehab if I rent them as short term rentals in a beach / vacation area. I'm trying to work out the best way to exit the first property and repeat after. I see two options for exit (without having to resort to trying to flip - which likely isn't an option with the direction this local market is going). In both options the B and the first two Rs are the same - I buy using a HELOC to fund the downpayment and rehab, a conventional mortgage to fund the purchase. Renting the properties will produce good cashflow -around 20% cash on cash. - that, plus loan paydown is enough, to initially think it's probably worth doing. I'm stuck on the exit strategy to be able to repeat (which is important to whether or not it's actually a good deal)

Where I am stuck is this - do I want my cash out refi to appraise just high enough to pay off just the HELOC against my primary residence so I can have that paid back until I find another deal to repeat the process... or is the goal to (properly BRRRR?) and have the cash out refi pay off the HELOC and have enough left over to invest as my next down payment then rinse and repeat from there?

The easiest and most obvious path to me is to just get the HELOC repaid and repeat but, I would prefer to get to a place where I'm not risking my primary residence via the HELOC on repeat - I could potentially do this within a few years via funds accumulated from cashflow. When I run the numbers it seems due to the minimal rehab needed, the amount of value I can add to the property in the short term is limited, and limits my ability to have a high enough appraisal to both pay back the HELOC and have money left for the next down payment. I also hesitate to buy a property needing substantial rehab (which would afford a higher value added) using a HELOC on my first investment to be safe. I'm curious what those with more experience than me would do if they were evaluating this. If I'm thinking through this correctly just getting the HELOC back out would mean all my money into the deal comes back out.