You want to have enough space to refinance or sell.

I am in the process of purchasing my first STR.

But I'm now considering selling that Merced rental and using the equity to buy a San Diego house that I would use as a 2nd home/vacation home & rental.I would rent out a portion of the house & save a space for myself when I visit.  

Many property owners choose to hire management firms to handle the logistics of renting out their properties, especially if they do not live nearby or prefer not to manage the rental process themselves.Here's how it can work:Hire a Property Management Firm: You can contract a reputable property management firm that specializes in managing rental properties.

Perform the same task in each app to ensure a fair comparison.Load a property with pictures and details.Market that property.See what your marketing looks like from the public's perspective.Submit a fake application to see how easy the process is.Run a credit/screening report on yourself.Enter a maintenance request, assign a vendor, and attach a fake invoice.Enter charges to the tenant's ledger.Enter recurring charges and automatic late fees.Sign documents electronically.Run owner reports.After testing a few apps, one should clearly stand out.

At more than 5 years, selling the equity at 50% of value starts to not look very good.good luck

The URL attached is a CMA Summary Report with on all recently sold properties, active listing, and pending sales as well as my comments/through process.

So you need to remember that there are about 4- 6 big box lenders that fund most of the Hard Money loans and then you have thousands of brokers selling their products and lots of times someone thinks they are dealing with a lender but they are not, they are dealing with a broker who has a lending sounding name and this broker is set up with an account at a few different lenders. 

Yes, if you refinance or sell the property within the term of the prepayment penalty, you will pay the penalty because it will be added to your payoff amount.All prepayment penalties are different and you should read your note to find out what yours is specifically.Hope that explains it.Stephanie

I am not a fan of selling anything once it has been purchased and stabilized- but that’s just me.