What to do next?????

Question

I have a property with a main house (3 bed/3bath) a  pool house with 2 & 2 with a refurbished small barn (beautiful) with 2 bed and 1.5 bath and private gated entry 4 miles outside Knoxville with an inground pool. Knoxville Airbnb's are unbelievably hot and no other listing this close to town compares. They are apt. with community pools.

For the pool house the est. for income a month is a little over 3 K. Airbnb is also launching Swimply which rents pools on an hourly tate that seems to start at $75.00. I have down payment but cant get a loan even with good credit due to my current income without my house selling first. I took 6 years off to care for my Mom with ALZ and feel like Im starting all over again.

This property has massive potential but is also in a class above most in the neighborhood so FHA loan shot down. A coat of paint on the pool house interior and then work on the rest would set this up to be a very profitable venture. Hitting brick walls though

Michael Sjogren · Answer

Check out Airdna to get a benchmark for what the property could bring in. I've found it's not perfect but it's a starting point. Then cross-reference is to other airbnb listings as far as average daily rates and what their calendar looks like from an occupancy standpoint, i.e. how booked up are they?

Put together an investment summary for a bank as well as investors and show them the data. I just threw in quick numbers (no idea what your taxes/ insurance would be - I use a company called www.proper.insure for my short term rentals). Compare the nightly rate and occupancy rate to what Airdna is showing to see if the numbers match or exceed what your targets are. If you can rent the pool house AND the barn then it sounds like the property would exceed the projections but this would be a starting point.

To @Lucas Carl's point, also run the numbers to see if you could still make money/carry the property if regulations change and you had to go with a traditional rental. Rule #1 always have multiple strategies. Hope this helps.

Leo Poon · Answer

@Tashia K campbell Have you talked to Non-Qualify Mortgage Lender, a lot of them are asset-based lender that will care less your personal income and focus more on the property itself. Rates will be higher than a conventional loan but it is still reasonable. If you can come up with 20% down, you should qualify for the loan with an asset-based lender.

If you are looking for a partner, I would recommend posting your operating term, what are the splits, and the plan for managing the property.

Luke Carl · Answer

My first suggest is don’t post the damn address on BP.

Also don’t depend on AirBnB in Knoxville. Will it make money with a long term renter if they shut you down?

Are you aware the amount of work involved in short term renting? Why not buy something down the street in the maintains that will always rent.

If the loan is your only concern than this would be better posted in a finance forum. Just call 100 banks until you get a yes. IF you’re sure it will make money.

Who told you that 3k Number? A realtor? If so ask that realtor how many short term rentals they own and manage. If they say zero then they’re making things up.

Good luck to you. If there’s a will there’s a way!

Peter Laurina · Answer

Go negotiate the best deal you can, get it under contract, but leave yourself an solid out.  Something like "contingent on investment partner's approval" or try to put a 20-30 day inspection contingency.  Then hit the pavement and start trying to find investors.  If the deal is good enough  and you are motivated people will want in on it.  If you ask around and can't find anyone, then maybe it's a blessing in disguise and the reason other investors haven't tried to buy it?

Tashia K campbell · Answer

I think Im stuck here in Pa till this house sells. I cant see leaving this empty without some damage even winterized. I just wish this house would sell so I could pick this up. All the numbers Ive put through and the pics my agent down there sent show real potential here. If its gone when I am able to move then theres something better waiting for me I have to believe.

Richard Lee · Answer

I saw this very property come across multifamily MLS a couple months ago and was somewhat intrigued by the possibilities. Good to see someone moving on it.

Tashia K campbell · Answer

Thanks  guys.

Tashia K campbell · Answer

If anyone is interested in partnering up on this we would get 3 nice houses in a perfect booming real estate location, fenced off .86 acres  for under 150k.  It was sold at 165 andthe home inspection was done and the buyers financing fell through and owner dropped it to 149,999.00. Im sure they would take 140.

"Zestimate

$164,774ZESTIMATE RANGE$142,000 - $203,000LAST 30 DAY CHANGE-$3,222 (-1.9 %)ONE YEAR FORECAST$175,880 (+6.7 %)

ZESTIMATE RANGE$142,000 - $203,000LAST 30 DAY CHANGE-$3,222 (-1.9 %)ONE YEAR FORECAST$175,880 (+6.7 %)

$142,000 - $203,000

LAST 30 DAY CHANGE-$3,222 (-1.9 %)ONE YEAR FORECAST$175,880 (+6.7 %)

-$3,222 (-1.9 %)

ONE YEAR FORECAST$175,880 (+6.7 %)

$175,880 (+6.7 %)

Tashia K campbell · Answer

Id love a partner but my social network dwindled when I took over care of my Mom. She was a very classy and dignified woman and people didnt want to come around to see the effects Altzheimers has on a person.

Yes First I was going to stay in main house while getting poolhouse ready for airbnb then work on main houses and see how that went . If people wanted the whole main house I would have the 2 bedroom behind  poolhouse to stay in. The only thing the house really needs is fresh paint inside. It has the Tennessee U orange colors in several of the bedrooms.

There would be nothing to compare to this on Airbnb with a private pool within 50 miles much less  under 5 miles to town.  The one with an above ground pool and beat up house was full going for over 150 a night. I was shocked.

John M. · Answer

Maybe find a partner?

Are you looking at living in part of it and Airbnb-ing the rest?

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