All Forum Posts by: Amanda Jacobellis

If you structure it as an investment property right away! Usually you can use the going rental rate for your refi or loan 

@Andrea Dees ugh Str income won’t count with most banks for two years

@Dan Beaulieu yup I own my own business for over 15 years and it’s almost impossible to count my income with lenders. I am now doing bank statement loans but they are closer to 5% plus points

@Dan Froilan I don’t know the market there, I’m Los Angeles based, but ...it depends. Are you paying rent- if so how much? Do you need cash flow and which calculation is going to bring more?

Vacation rentals can be cash cows allowing you to grow faster but one thing to consider is STR income won't be considered income for 2 years for the purpose of refi (this is starting to loosen but talk with your lender)

If you are planning to live in the duplex you will probably get a great rate and it’s easier to refi but won’t be cash flowing as much

In my experience long term rentals appreciate more but cash flow less.

Also do you need to use a management company or can you do it yourself? Str management companies take up to 30% of revenue where you can probably manage a duplex yourself to start. I am a big advocate to manage your vacation properties yourself if you can but it’s more time consuming for sure.

Let me know if you have questions

@Brittney WIlliams hi Brittney, as a woman in this industry it can be hard to be taken seariouly by contractors etc. while you are fining your team here are some techniques I use.

1. “My partners” if I feel like I am having a hard time getting what I need from a vendor I speak about my evil partner :). For example, “ thanks john, I see how you are working very hard, and this looks great for the most part but my partner is not going to approve xyz and I know he will not go over budget on this”

This lets me not be the bad guy but the team mate of the vendor but we have to keep my evil partner happy lol

2. Once you know your grades subcontract it will save you a ton of money but make sure you or someone on your team is over seeing everything.

3 Make sure you are buying a deal

@Chase Yokoyama what taught us the most was purchasing our first hone and renovating, then selling 7 years later for almost a million in profit. It wasn’t technically any of the above strategies but we learned about each aspect of flipping in a slower safer way. Then we started “uplifting” for people - which Is upstanding, renovating, staging in a minimal way to maximize sakes profits. I say play to your strengths. My strengths are in design, project management and budgeting. We now have Short term rentals and focus on Brrrr method. We do an occasional flip.

@Rashad Ellis cash for keys

@Luis Rodriguez It’s so crazy right now - I’m sorry. Maybe wait and see ?

@Minna Reid we just aren’t seeing this in California. People have extra cash they are parking in real estate and there are not enough houses. Also an issue - development has been way down for years

I don’t see there being a lot of foreclosures because banks and government do not want them. I see a commercial crisis if any

Vacation homes are artificially inflated Right now though

@Pat Goodyear hi Pat! You are right you should not be doing jobs that a, someone can do better and b you can pay for less than your own wage. Instead of a management company you could sub out landscapers cleaners etc. and hire an assistant to manage and coordinate. That may cost less than a full management company. Also are your properties close together? If so ans you can pay hourly rather than per job that may help. I’m sure someone can do your lawn work just as good as you and save your valuable time ;) sometimes the hardest thing is delegation and trust. X