All Forum Posts by: Taylor Silker

Ralph R. You are definitely right about the sale price. I shouldn't have started so high but it's honestly hard to compare new builds in the area when there is nothing to compare. And as of right now we actually will cashflow at least 2500 with low vacancy. My holding costs right now are no more than 1500 but will jump to 2500 if we switch to conventional 30 year fix. It's going to be hard to lower the price and cut my losses when it's bringing in extra cash in the meantime. I should probably bite the fricken bullet though. I would be happy to get my 7-8k back that I put in. Lesson learned!

Ralph R. Why would I accept a low ball offer if this is bringing in an extra 2-3k a month cash flow? Shouldn't I do anything I can to keep this? Doesn't this prove the property could be valued higher? I guess it comes down to either finding a financial partner or coming up with enough for the remaining balance of what I cannot get financing for. Could be 25k. I could damn near make that if I can keep 0% vacancy in the next 4 months.

@Greg Scott I messaged a few similar hosts in the area and they were nice enough to tell me they stay booked in the cold months as well with a little price reduction here and there. Sounds like we should stay busy if we price it right. Also the loan doesnt expire until 11/1/17 and the lender said they could extend if it wasnt selling.

Could I take profits from airbnb and us it towards a down payment on the new loan? And try to get them to extend since they extended me!!?

@Ralph R. My sister does not have good enough credit or income history. She has 3 kids and is a go getter but  not necessarily on paper. I am the only one in my family with good credit. 

Thank you Greg! Why do you think they stretched the construction loan for me knowing I couldn't afford the conventional? Isnt this the type of financing that creates the housing bubble?

I also know this was a horrible deal  after educating myself in the past few months. I wish I would have read Rich Dad Poor Dad before I started and not 4 months in!!

I have recently finished construction on my first property at the age of 27. Last summer my sister and I came up with the idea of getting into possibly flipping a house. I live in colorado and she is a real estate agent in northern Minnesota. We decided I would come up with all the financing (7.5k) and she would GC the deal for her first time and basically do all the ground work and work on what she could. We then found a parcel of land which was for sale on the tax forfeit list for 17k. I put 2k down on the land and we found a modular house that has huge A-frame ceiling and a master loft so it doesn't look like a modular at all really. Anyways we put 5k down on the house and then went for financing. I received a construction loan for 309k which was an in house loan for this local bank that said they "stretched" the loan for us just in case. We didn't plan on spending all that money on construction with the budget we had planned but we all know how that goes. I maxed the budget but we are finally finished after 8 months of construction and having to finish the loft among other things. After all the hard work we put it on the market for a price that we know is a little high but obviously i would like to not loose money after closing costs and all that. We haven;'t had much luck on the mls so we figure we would do a little airbnb to help with holding cost. Heres the kicker. After only one week we are booked for 20 days in august and haven't had a vacant day yet since we've had it up. We will make at least 4k and our loan payment is about 1k on interest only as of now. 

Last time I spoke to the loan officer, she told me that we should sell the house cause she doesn't think i will able to switch to a conventional mortgage and keep the house. This has to do with my debt to income but my income has only got better since the start of the loan. Why the heck did she finance me for the construction loan if she knew I couldn't afford to switch to a conventional?! I spoke to another bank in the area and they said they couldn't finance me either. This house  is a potential 1.5% deal with good vacancy rates on airbnb. Is there any bank or investor out there that could finance me knowing this potential? 

As a young and devoted investor I would really appreciate some feedback and guidance on what i should do. I really want to keep this house!  Thank you all!