All Forum Posts by: Summer McDade

@Lynette Guy

I started as a turnover cleaner for vacation rentals locally. I actually had a client approach me to handle his listing and guests, for a fee. And after considering for a while accepted.

It has turned into a business for me. I actually allow my owners to have as much interaction with guests as they want. So I am able to provide guest services locally, as well as cleaning and concierge, while the owners still get to be involved but don’t have to do the hard work of driving from all over creation to come meet a plumber, electrician, put a faucet cover on for freezing temps, etc.

it works well since we are like a partnership. They simply get an invoice at the end of the month. I still do just turnover cleans for some clients. Even through evolve. Their big seling point is all of the exposure but what I’ve found is all the exposure in the world won’t help keep you rental booked without guest service being excellent.

@Daniel Weed

Well it does help pay it off faster if you make that lump sum payment, then you take the extra amount you are saving each month and pay that towards the principal. Marrying the two ideas.

So you have now paid off a huge chunk of your principal, lowered your monthly payment while not paying thousands in closing costs, AND you are now able to throw even more money every month towards that same principal, therefore your loan amount decreases faster. Plus, if you take any work bonuses, tax refund (who is still lucky enough to get those? Amirite?), flip house profit (that you don’t use for a 1031 exchange), or lottery winnings (who gets that lucky?) and throw those at the principal as well as a recast (depending on how much they are) you are constantly decreasing the amount you owe.

So while yes, the loan term IS actually for 25-30 years over and over, they can’t hold you to making payments on it for that long just to keep paying interest. Once your payoff is paid, it’s paid.

I could win the lottery tomorrow (fat chance) and pay off my current mortgage WELL before that 30 years is up. Because I paid what I actually owe. Doing a recast just helps you save mo way every month to be able to afford it.

And the good thing is that if you do that, you have a lower payment and less chance of losing your house if something terrible happens to your life.

@Daniel Weed

When I was first told about it it sounded like a scam. Or maybe something the lenders would’ve gotten ahead of.

But nope. I spoke to my normal lender and he confirmed that, yeah, you can totally do a recast. That it’s not typical. Not a lot of people know about it, and you would have to come into some kind of windfall, to be able to make a $50,000 lump sum payment to the principal. And most normal folks don’t come into $50,000 on a whim. But if you are doing well and can make lump sum payments, why wouldn’t you?

@Russell Gronsky

So I was actually just discussing this with a friend who has paid off multiple homes and she’s in her mid thirties. And isn’t rich. Not is she a real estate investor.

She buys a home and saves like crazy and then pays a huge chunk off of the home in a “recast”. So basically, the lender recalculates the mortgage back to 30 years. So it lowers the payment and she uses the savings each month to pay on the principal. Because unless you can payoff a huge chunk at one time there’s no sense in doing more than one recast. When you recast, it doesn’t change the interest rate and it’s not a refinance. It’s only admin fees instead of closing costs and no appraisal or inspections are required.

@John Underwood I’m a vacation rental manager on the lake here! 👋 and yes they do tend to be in more rural areas and more acceptable (in some neighborhoods). I do have a few STRs in a town close by that is more residential though. And I think it just depends on the neighbors really. Our neighbors in town don’t seem to be bothered at all. I think mostly because of who the “strangers” seem to be. The town and neighborhood frequently hold family type events, baseball games, conventions, etc. so the renters tend to be more of the family type folks, rather than bachelor parties or something bothersome.

But OP I am in a market that varies widely for STR but most places here aren't restricted....yet. I fear that they will be soon but until then I'm trying to do all I can to screen guests and set expectations with the guests before the commit, and I involve the neighbors. If they are aware of the situation and feel included in some choices of the neighborhood they seem to be less likely to be angry. Maybe because they feel more "in the loop" and aren't left wondering about strangers in and out.

@DuBeaux Dingle I have only been an agent for a few years but I started with a rental, and I manage vacation rental properties (that I will probably never be able to afford 😂). My husband and I flipped a house and were able to get over 100% ROI. it was our first flip and the house was a dump to say the least. I know that flipping isn't investing, but it was an investment for us at the time because we had no idea if we would hold it to make it a rental or sell it after completion. But as we watched the market during the reno, we knew we had to sell. We were fortunate enough to be in real estate and see how the market was warming up here, for rentals AND sales) and we took an educated chance. So I get what you are saying. It baffles me too. But seeing how the secret here is out now, and we can't find flips or buy any rentals for a decent price either, be grateful there's more choice and negotiating room for you. Lol

But what if they are buying and not going to use it for a rental? The consignment is a great idea you aren't hijacking. Idea flow is the BEST!

For those of you that flip houses what rooms or items do you ensure are done every time that bring the best value upon sale?

I am a real estate agent and a lot of the homes I sell are vacation properties. So they are empty when being sold. Would you recommend l, and how would I go about, partnering with a local small furniture business for staging? I know I would position it as getting more business as well. Plus, the buyers would have the option to purchase the furniture. But how much would you pay for that service? Or would you consider it marketing for the both of you?

If you get a property at a tax sale and the owners are still living in the home...what do you do?