All Forum Posts by: Tony Salazar

We have a vacation house on Lake Hartwell and we love it. It rents in the summer for the water. Rents in the fall for Clemson football games, rents in winter for people getting out of bitter northern cold or even to get a away from heat in Southern Florida.

Homeaway property 3685237

John, Looks like that property is a home run for various usages. What areas on the West Coast/Sates would make a fun vacation, strong STR, and numbers would work for cash flow.

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Originally posted by @John D.:

Jumping back into this thread after a while away...

@Andrey Y. writes "What are your thoughts on the 35%+ for property management and 14.5% for TAT and GET taxes?"

--I pay 25% for property management when they bring the bookings, 10% when I do. Taxes are billed straight to the guest as a separate line item. Higher wear and tear and furnishing costs are significant as well. But my gross vacation rents are 5x what my rents would be with an annual tenant....making these costs tiny in comparison with the increase in rents. With that said, these would make rather poor long-term rentals and were specifically bought as vacation rentals.

@Kiki Helland and @Gerard Lester typically you can only use vacation rents in your debt-to-income ratio after 2 years of operating history on your tax returns. With that said, in some major markets, if you go with a big player as a property management company they may guarantee you an annual amount, which you can then use right away. You'll likely be leaving money on the table though, if you go with a guarantee. I've heard of some people even getting minimum guarantees, plus the upside if rentals are better then that minimum -- if you have a number of properties, perhaps something to discuss with your local property management company.

Hi John, those are impressive numbers for STR compared to long term rentals. I have never purchased a property for vacation/STR but am interested. I was looking at Lake Havasu, AZ as a possibility where I could use it with my family for vacations, then rent out short term during the summer months for 3-10 days, and winter months to snowbirds for 3-4 months. Are you buying only in the Palm Springs area? What other areas do you think would do well? Also what price point and other key factors do you look at? Thank you.

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Hi Michael. PM sent. I have purchased and flipped in trending transitional neighborhoods and have done well with some, and not so hot with others. Are you interested in flipping this?

If so, please explain the neighborhood and property.

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Hi Raj, PM sent. Send me the details, as I can close immediately!

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Hi Greg, thanks for the input on this property. Looking forward to receiving the additional information so we can make a decision on this. If you come across any addition flip opportunities, let me know as I always close on what I start.

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Great job @Adam Gerig on developing a game plan and getting it implemented. The dream killer is typically not making enough momentum to get it going, but you are obviously past that part, so keep fine tuning it, and you should reach your goal before the end of the year.

Also, How are you getting your properties leased out in a timely manner?

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Originally posted by Wayne Brooks:

Absolutely, positively no way you buy a 2 unit rental 2,500 miles away, Especially your first! The numbers are another story, that shouldn't even matter.

Hi Wayne, I am curious why you state ABSOLUTELY, POSITIVELY don't buy across the country. Please explain your position why there is no way it could work.

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Well maybe not. I just noticed Homepath.com is stating this under their financing

http://www.homepath.com/financing.html

HomePath financing, available only on Fannie Mae-owned properties, offers great benefits — low down payment, no mortgage insurance, expanded seller contributions, and more. HomePath Mortgage is available for move-in ready properties for both owner occupants and investors — a limited number of HomePath lenders also now offer HomePath Mortgage for the LLC borrower

Can We get some feedback on this.

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If you didn't purchase cash, and you took out a loan, then a couple of things to consider. That loan will remain in your name and against your credit.
Also on your next purchase, the lender may count that loan payment in your DTI (Debt To Income).

Best thing to do in advance, is discuss your plans with your new lender and make sure they run everything through their underwater.
Good Luck!

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Originally posted by Joe Delia:

You're not missing anything. 40K for 1100/m seems a bit extreme though. Maybe 50K all in for that return.

Let me know if you want to view some.

Joe, I am very much interested, and I will PM or email you.

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All Forum Posts by: Tony Salazar

Tony Salazar has started 4 posts and replied 42 times.

Post: Highest and best use: There's more money in Vacation Rentals

Post: Highest and best use: There's more money in Vacation Rentals

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