All Forum Posts by: Aja Leafe-Hall

Any advice for writing a proposal to someone for a private loan? My parents' friends have already offered to finance a property for us, but I need to write a proposal for a specific property. What works well in situations like this? I was thinking of proposing the loan terms as a 5/1 ARM with a balloon payment to the lenders when we have more equity in the property. I am brand new at this and, honestly, pretty uncomfortable. Any insight is welcome. Thanks in advance!

@Richard Dale-Mesaros, thinking of a house or multi family. One of my exit strategy is that I or my parents (or both) can move into it someday. Maybe we should only be looking at Multi Families? Or a single family as a "starter" STR. There is one specific one that they like and have seen. It needs work which my dad can do. I am trying to find out how to make the numbers work from across the country!

@Michael Baum, yes, that does concern. However, it seems to apply to a very small community in the whole area! I am also sympathetic to the struggle of locals finding housing. I spent a summer there waiting tables. One solution I thought of is buying a multi family and doing 1/2 LTR lease, 1/2 STR. That could mitigate some market turbulence and ease my conscience!

@Peter Brandon thanks for your insights. I am currently looking at a home in the Edelweiss development of Madison, but I am also strongly considering Bartlett, as well as Conway/ North Conway. The Madison home is most affordable, but maybe will show less income potential than a home in Bartlett/ North Conway? My parents are in Eaton. We do want to have something available for family use which is why STR makes more sense than LTR, I am just concerned about making the payments if we can't rent enough to cover the costs. So what would you suggest?

I should mention that I am talking about the White Mountains of New Hampshire. Summer and Ski season are the high volume times.

Hi there!

I am looking at long distance investing in a vacation rental house. My parents are willing to manage it on the ground and I even have 100% financing including rehab costs from a private third party. I manage some AirBNB property where I live for someone else so I have some idea of what I’m getting into, but I am not really set up the same way to have my own rentals locally (out of my price range for one thing). I feel that I am a bit late to the game. I looked at AirDNA stats for the area I am planning on investing in and there has been a huge proliferation of STRs in the last year. So I think we should have a good distinction if we want to stand out from the crowd. I just want to pick y’alls brains here about what I should pay attention to and if I should even try to break into this market?

The sellers are asking $268K, or about what my single family home in Olympia is worth. I was thinking of offering $240K. I have used the BP calculator and a very conservative estimate of income andcosts still shows cash flow.

@Greg Scott and the HELOC would be used for the 25% down. The property would have its own mortgage

@Greg Scott, my boss means small multi families like duplex’s and triplexes. We should have no trouble financing it on our own. My plan would be to pay the HELOC down as quickly as possible with the cash flow, but I think the payment is less than $400 once the interest only payment period ends

Hi,

I am getting ready to buy my first long distance investment property with funds drawn from a HELOC on my first home. I am considering using about a third or less of the equity available, and holding on to my home for a long term investment even when we move out of it. It has a locked in low payment in an area of swiftly climbing rents.

My question is should I use my HELOC to invest in a cash flowing 3 unit property, or start small and work my way up to that someday? I am concerned about being "over leveraged" even though the lender I am working with says I could do this Multi Family property. My experienced investor boss/friend says go Multi Family whenever I can. The idea of doing this when I have very little cash saved up, scares me though. Is it worth stretching that equity?

Also, worth mentioning, The 3 unit building is in an area where my parents live, and I would like to move there in 2 years. So the idea of house hacking when we move is appealing. We would have some more freedom to find the right jobs.