This is a short term rental on the Beach in OBX. We used a HELOC for cash investment, and a DSCR loan to finance. With the HELOC and interest payments, I'm not hitting cash flow yet. We plan a renovation that will still keep me in the net zero cash flow, but after renovations we expect to start seeing some cash flow on the investment.
What made you interested in investing in this type of deal?
We wanted to start our journey in real estate, but also have a place to vacation.
This is a short term rental on the Beach in OBX. We used a HELOC for cash investment, and a DSCR loan to finance. With the HELOC and interest payments, I'm not hitting cash flow yet. We plan a renovation that will still keep me in the net zero cash flow, but after renovations we expect to start seeing some cash flow on the investment.
What made you interested in investing in this type of deal?
We wanted to start our journey in real estate, but also have a place to vacation.
Hey @Stan Koper, welcome to the BP Forum! What's the main driver for you not achieving positive cash flow to this point? I suspect the occupancy rate is lower than you expected, is that accurate?
hi Jaycee, Technically it does have positive cash flow. The DSCR loan payment is ~$4k, and the property generates ~$6k per month. I'm factoring in my HELOC interest payments, which gets me close to using the balance of the difference.
I'm looking to pay down my HELOC investment, and make some improvements to get this into a cash flowing position.
hi Jaycee, Technically it does have positive cash flow. The DSCR loan payment is ~$4k, and the property generates ~$6k per month. I'm factoring in my HELOC interest payments, which gets me close to using the balance of the difference.
I'm looking to pay down my HELOC investment, and make some improvements to get this into a cash flowing position.
@Stan Koper Sounds like the LTV is too high...when do you project to achieve true positive cash flow?