Need Quotes for Non-Warrantable Condos in New Braunfels, Texas

[Mitchell Petras]

Looking to invest in 2 condos in the New Braunfels, Texas area to be used as short term rentals. The property is majority investment properties making it non-warrantable. I’m looking to get quotes and optimized options to make this happen. I’m willing to put down 25%, just looking to make an informed decision on the financing side here. The properties are currently about breaking even based on their first year as rentals, but the management company used seems to be leaving some on the table in my opinion. 

[Chris Seveney]

Quote from @Mitchell Petras:

Looking to invest in 2 condos in the New Braunfels, Texas area to be used as short term rentals. The property is majority investment properties making it non-warrantable. I’m looking to get quotes and optimized options to make this happen. I’m willing to put down 25%, just looking to make an informed decision on the financing side here. The properties are currently about breaking even based on their first year as rentals, but the management company used seems to be leaving some on the table in my opinion. 

 Personally I would not invest in these. Why? Not sure how long you have been around, but when markets soften, these types of assets get crushed because vacancy rates increase which causes condo fees to increase due to the amount of delinquency on the books. These are like a double whammy and if they are not cash flowing now - they probabyl will never cash flow.