New Investors Seeking STR Guidance (Blue Ridge)
Hi BP Fam,
My friend and I are in our late twenties partnering to invest in a STR. Currently, I own a primary residence while my friend rents in the greater ATL area. We are newbies and would love some guidance from more seasoned investors!
Type of property: Single family home for STR ($300k-$315k)
Location of property: Blue Ridge, GA (Or surrounding areas like Murphy, NC - Open to suggestions)
Purpose of financing: Purchase
Type of financing sought: Need guidance. 10% Conventional (Secondary home loan) or Investment property loan
Personal Finances: Credit Scores - Excellent 780+, Salaries: 100-107k, No student debt or car loans, I have a mortgage of 1900/month
Questions:
1. Financing: 10% Conventional (2nd home loan) or Investment Prop Loan? I read that 2nd home loans would be around 4% vs. Investment Prop loans at around 4.75%.
2. Taxes: What are the tax advantages of declaring the property an investment prop vs. a secondary home? Does anyone have a spreadsheet that they've used that shows their deductions and their annual returns?
3. Should we set up an LLC for our STR business? I know its more difficult to secure lending as an LLC but we also want to protect our personal assets. I've also seen people recommend just getting an umbrella insurance policy.
Thank you in advance! If you are in the ATL area and are also a STR investor, I'd love to connect.