All Forum Posts by: AJ Wong

Yes North OR Coast. It's an area I don't actively recommend STR as it does have usage limitations (duration restrictions between guests) but it's primarily a second home getaway and will transition to full time vacation rental down the line. At that point $60k gross with the restriction. The same home with unlimited usages would generate $85-95k gross.

 They did have a larger down payment percentage of 35%. Non-Jumbo. Not a repeat mortgage client but referred to a repeat lending partner. They are hyper focused on any conforming loans $500k-$10M and apparently most of the coast is currently a 'preferred' high limit area for some of their investors. No recent appraisal but fair valuation in very in demand community.

Hello. I've owned, operated, managed and sold all types of BnB's throughout CA & OR the past decade. My primary points with investors or operators are:

- Design and Decor..updated aesthetic appeal can go a long way. Professional photos can also help. 

- Management and resources..operate it like a hospitality business with very clear communication with guests and reliable crews both for cleaning and emergencies. 

- Consider guest amenities, house rules..hot tub..pet friendly etc

- TLC. As with any investment you get out what you put in. STR's probably take more effort than investors expect, but they are a proven and generally less available (due to regulation) asset class.

- Do you data research. Using real world comps & calendars from your personal experience, local PM's, online estimators. Prepare for the worst, expect the best. 

- Treat it like a home that you are inviting guests to. It's a fine balance between economy and what you would do for oneself, but creating a space that feels like home should be of primary focus.

If you're looking for some insight into re-leveraging any investment properties for capital improvements, furnishings, etc, some lenders can utilize AirDnA projections to qualify. @Joseph Chiofalo has some great nationwide STR investment loan products and fixed rate second/Helocs for investors loans clients tapped into recently.

Good luck! 

If there's one thing STR investors welcome in the PNW... it's dogs with three of the top 10 locations for pet friendly AirBnB's located in Oregon & Washington.

According to AirDNA the top ten vacation rental destinations with the greatest proportion of pet friendly AirBnB listings are:

1. Gray's Harbor Washington - 67.8%!

2. Joshua Tree California - 66%

3. Red River Gorge, KY - 55.4%

4. Ocala, FL - 53%

5. St. George Island, FL - 52.9%

6. Amarillo, TX - 52.6%

7. South Dakota Area, SD - 51.1%

8. Northern Cascades, WA - 50.8%

9. Las Cruces, NM - 49.1%

10. Rockaway Beach, OR - 49%

Most of my Oregon Coast and Joshua Tree area investors are aware that pet permissions can add a significant (5-10%) boost in revenue. Obviously comes with some drawbacks, but as somebody with two dogs pet allowances are essential when we travel with the entire family. 

Rockaway Beach has made consistent appearances on many top beach STR investment lists due to a balanced price to ROI ratio (and majestic destination) with a historically a low barrier to an STR permit. Probably for the better the city recently instituted a CAP on new licenses. Actively licensed properties can transfer to the new owners but until about 100 sales or non renewals of currently licensed properties occurs, no non commercially zoned or non active rentals can obtain a new permit. However, generally there are several active listings of actively licensed or operated STR's in Rockaway Beach and the immediate surrounding area.

Do you allow pets at your vacation rentals? If so what are some tips and tricks to keep things clean? I think a lot has to do with the property itself, if there's space for dogs and their business, and also the area and type of guests likely to visit. 

Hi Bee. First of all, don't panic..if you've been timely with payments you can always go to the seller and try to reorganize an extension. 

If you've had your plans approved for shovel ready development..great job! What are you planning to build? 

The next steps will involve accurate construction cost estimates by a licensed contractor (or two) and connecting with a lender (possibly current local bank) for construction financing. Some will allow you to roll in the existing private mortgage balance. 

Check in with @Joseph Chiofalo for some construction financing options. He's in your area and also a licensed FL RE Broker so can help you organize the transaction. Good luck! 

Hello! Check in with @Joseph Chiofalo! We've worked together 20+ years and he's FL Based. They just waived an appraisal for a STR purchase out west that cleared to close in one week..they have strong DSCR programs for all types or properties. Good luck!

It's been a very long time since I had an appraisal waived for a buyer obtaining financing but just received surprising news today! 

I work for/with a very investor focused lender and they support many of our luxury STR and second home coastal purchases for my client's in Oregon & California and they just waived the appraisal for a $800K purchase!

Testament to the strength of the Oregon Coast market and that there are incentives for very well qualified borrowers & quality properties. 

Loan should be CTC within a week of contract and investors enjoying the property and filing their STR permit application for Summer..

Rate on a 30 year fixed was in the high 6%'s...big job's report tomorrow that could accelerate rate cuts..stay tuned! 

HI Rob, been a long time since I've heard of a bait and switch! Check in with @Joseph Chiofalo they can close extremely quickly and just waived an appraisal for another client :) 

I have a colleague in the area with my RE company, they are mostly investor focused if you send me a DM I can connect you. For healthy investor focused mortgages check in with @Joseph Chiofalo for options and a second look. They have some very attractive investor loan products. Good luck! 

Absentee development is very challenging unless you have a very reliable team. One way to unlock potential could be to take the project to 'shovel ready.' Essentially all of the planning, permitting and projections ready to prepare the project for development and then sell the property with the additional 12 unit entitlement to a more seasoned or experienced developer. The net return on time and energy could exceed taking the project to completion. Otherwise check out construction financing with a local lender or credit union. 

Good luck.