Working with a private lender can indeed come with challenges, particularly regarding qualifications and funding structures.For your cosigner, they typically will need to be a member of your LLC and the private lender will want them to hold 51% - depending on lender of course.Compensating your cosigner fairly is based on what both parties believe is fair.

For those of you that are more experienced in this space, would you change your financing approach based on this new information?

For example, an algorithm can't compare a property that charges a flat fee for utilities vs one that charges based on use. 

I could never buy land in brickell it's more than 300 million per acre. but in columbus I can buy an infill lot for 40-60k within 1mile of Downtown Columbus. we looked at hundreds of Floorplans and found that 2 bedrooms seemed to be better than 1 and we wanted a tight compact floorplan that could get high rents. rents are higher Downtown Columbus and property values are higher Downtown Columbus by more than 40%. after that we wanted 4 units but it was commercial so we stuck to 3 units because it's residential. in February of 2024 we submitted our first design of a stacked triplex that is 2 beds 1 bath. after design changes, we now have about 7 approved in our market. all of the underwriting of banks is based on long term rentals.

You would pay $950k for that property because it’s a deal based on today’s value?

Maybe your wife would be willing to take a lump sum based on the equity in the Air BnB. 

(aside from the 1 or 2 homes that have stunning overlook views).When building out your buy box, are you all using the averages, or are you basing your min/max on the cream of the crop listing revenues, even when there aren't clear reasons as to why they are performing so much better than others?

The property is likely a little too expensive for me to qualify for with a conventional loan based on DTI.

Im currently searching for another property in the area to do STR. 

Hi @Daniel Carrillo,Just based on conversation had at various conferences I've attended I think we will see some increased activity later this year.