All Forum Posts by: Tanner Lewis

 @Ardian Selimi are you looking to leverage on the cabins down the road? 

We can use STR as an exit strategy and qualify the income with AirDNA, I'll send you a message.

Hey Liam, I am in very similar shoes! I am from Richmond, VA, and am currently in Austin, but I am looking in Richmond for flips. I'd be happy to get in contact to talk about the market as well as refer over some of my contractors, realtors, etc, in the Richmond area. I suggest sticking with turnkey LTRs for your first deal, and after that, start branching out into BRRRR/fix and hold, as getting in too deep on a rehab can put a lot of first-time investors underwater.

I suggest going to the Moorhead Meetups in Austin, There are a ton of BiggerPockets investors, and they are hosted by @Jordan Moorhead, who is an investor-friendly agent in the Austin market.

Hey Ardian, if you are looking to do ground-up construction, I assume your father will be bringing relevant experience to the table. Most hard money lenders will require that one of the partners have ownership in a ground-up construction deal in the past five years or so. 

The tiny cabin STRs would also be a challenge to finance. Ground-up financing in rural (I assume since they are "cabins") is often pretty difficult, but there are loan products available. When you head into the project, make sure you talk with a lender who can do STR financing on rural deals and make sure what you are building will be eligible for refinancing before breaking ground. I see too many niche STR investors looking to build abnormal property types in rural markets and they have an impossible time refinancing out of the deal.

Finding a good house hacking deal in California is tough, and it would be more of a max leverage/appreciation play than a cash flow one. Komal, given your goals, it would make a lot of sense to invest in more southern states. I am personally a big fan of some Mississippi, North Carolina, Tennessee, and Florida deals, as they are all fairly landlord-friendly. However, your best bet is to pick a medium-sized population city within those states with a lot of population growth. You'll probably find a lot of markets that match your objectives there. 

It is best to have both options as exit strategies. If you go into a BRRRR with the intention of holding it, but the numbers make more sense as a flip, you can pivot your strategy to what makes the most sense for the deal.

If the numbers pencil so that you are negative cash-flowing less than what you would be paying on rent, the house hack is a good option. However, I doubt that you will be able to find a deal like that in San Diego meaning you may be better off in a high cash flow market, but it really depends on your goals for the deal. 

Chalet is a great resource for getting set up with a STR team. I've been talking to a realtor they connected me with in Clearwater, and they are a STR investor and own 10 rentals in the market as well as know the STR regulations street by street. Very good resource for getting set up with STR property managers, cleaning services, realtors, lenders, etc. https://www.getchalet.com/

I use it for DSCR loans as well; it is accurate yet conservative because it gives you the median 50 percentile for the area based on comps. Just make sure the bed/bath count is correct as it can affect the income drastically

Hey Anthony, with conventional financing, like second home loans, you won't be able to borrow with an LLC or transfer into one without triggering the due on sale clause. The best way to do this will be with a DSCR loan for short-term rentals, but this will come with slightly lower leverage than a second home loan (90% vs 80% LTV). Reach out if you have any questions, as I primarily do STR financing and am happy to help.