All Forum Posts by: Wilson Vanhook

Hostaway no question. I manage 50.

Hey Alyssa! Hit me up if you want to chat in depth about the market! I own a couple of rentals in the area myself, and I also own a management company in Broken Bow. All in all I manage about 40 cabins in the Broken Bow/Hochatown area.

I use Hostaway and it can do a lot. They are transitioning towards becoming a one stop shop. I currently use their integration with Pricelabs and RemoteLock. But Hostaway now has their own easy to use smart lock feature. They also just launched a new dynamic pricing tool, its bare bones now but over time maybe it’ll be good enough to cut ties with PriceLabs.

Check out The Host Co

That's what I like to hear, give me the brutal honest truth so I don't go screw myself over lol. Really appreciate that insight. That may be an alternative option for me, it isn't an immediately turn around to try and get my money back but maybe in 12 months.

Help me figure out if this scenario I thought up has potential to work or not.

First Leg:

Purchase Price: $500k

Down Payment: $100k

Closing Costs: $20k

Let's say I want to purchase a short term rental at the price point of $500k. First leg, I do my 20% down DSCR (no prepay penalties) and close like normal on the property. That means I brought $100k as my down payment and paid about $20k in closing costs, so I'm all in for $120k out of pocket and my loan note is for $400k.

Second Leg:

Loan Note: $400k

Cash Out Refi Amount Request: $500k

Closing Costs: $10k

Now for the second leg here, let's say almost immediately after closing within a month or so, I want to do a cash out refinance to pull my entire down payment out. I put in the request to refi the loan at $500k, meaning for an LTV of 80% I need the appraisal to come in at $625k. In this scenario if I can get the appraisal to come in where I want it and actually refi at $500k, the only costs I ate to acquire the property were the total $30k in closing costs. Now I hold and rent out as a short term rental.

For clarity this is not a rehab project, this would be me just trying to refi without adding value. This may sound crazy, but I own another STR in this particular market, and the reason I think this might actually be possible in based on the value of my other similar property. I own a 1 bedroom cabin worth $615k on paper and it's only 900 sqft. This new cabin I want to acquire is also a 1 bedroom but is 1350 sqft. So I really feel like it could appraise for $625k after closing the first leg and trying to do a refi. The risk here is what if I can't pull my money back out and don't get to cash out refi the amount I want. I think the gap in my knowledge here comes down to how appraisals work? Does anybody know how they get their appraisal number? Will they look at what I just purchased it at for $500k and be like no way we aren't appraising this for $625k a month later? Or will they see my newly requested loan amount for $500k and be like okay we will try to appraise it at $625k to cover this loan? Or do they actually do it the right way and pull nearby comps? What if they pull comps and they appraise it low, then I show them what my other smaller property is worth on paper? Can I ever communicate with them? So many questions on the appraisal side I really just don't know how that works. I feel like for new purchases they are typically generous and try to make sure people can purchase the property they want to. But this is a little different that a new purchase.

Charge the guest using Airbnb's Host Damage Protection. Moving forward, a better alternative than hassling yourself and your guests with damage deposits is to just purchase damage insurance through a company called Safely for each booking. I pay them $15 per reservation to give me $1500 of content coverages on each booking which covers most incidentals. When people cause damages that aren't accidental though such as smoking weed in the property, I still charge the guests and hold them accountable for breaking the house rules.

I have some really exciting ideas I'd like to make come to fruition for a newly built luxury honeymoon cabin in Broken Bow, OK. I know the market very well as I already own a couple of cabins in Broken Bow, and I own a property management company here as well managing 30+ cabins. If I can get from point A (drawing up plans) to point B (finishing the build and renting the cabin as an STR) I know that this thing will be a cash producing monster with a fantastic ROI. I attached photos of some unique ideas I came across for indoor hot tubs which would truly set this place apart from any and all competition. This is just one of the many ideas I'd love to implement in this new build.

I've talked to a fantastic builder in the area and the build from start to finish with the lot should cost about $450-500k. The appraisal I expect to come in at about $650k when it's all said and done meaning the refi at the end of this should result in very little out of pocket in total.

The issue for me is the lending side of this deal. My DTI is shot from my other investment properties. I know there are some DSCR type of construction loans that don't factor in DTI. However, is sounds like those either require previous build experience, or else no experience but they'll only fund about 65% of the construction costs. Basically I need something that's the best of both worlds since I have 0 build experience but also don't have the huge up front down payment of over $150k for the build. What are my options? There are some construction loans that will fund up to 90% of the build costs with qualifying income but again my debt is just so high because of these other mortgage payments on my credit.

Somebody help give me the answer I'm looking for so I can create this unique stay!

How can I take advantage of this attractive 2.75 interest rate, without coming out of pocket $100k? 1 I don't have 100k to put down and 2 I'd like to finance the 100k some way. They are not requiring me to assume the mortgage, I just really want to get that low interest rate. I could use my own 0 down VA loan but then by interest rate will be around 6 percent roughly.

I was planning to use my 0 down VA loan on a new primary residence. But then I came across a seller than has an assumable VA loan at 2.75% interest. The purchase price is about $350k, but the assumable mortgage only has about $250k remaining. What are my options to cover the $100k difference to still get this house with 0 down?