All Forum Posts by: Amber Layman

Investment Info:

Single-family residence buy & hold investment in South Bend.

Purchase price: $70,000
Cash invested: $85,000

Short Term Rental
https://www.airbnb.com/rooms/560366563904773536?preview_for_ml=true&source_impression_id=p3_1649289826_W7IZoOYs6Bqua0Eo

What made you interested in investing in this type of deal?

I have great success with my first STR (located just across the street) and wanted more!

How did you find this deal and how did you negotiate it?

I found this deal on Zillow and offered 5k less than LP and it was accepted

How did you finance this deal?

I paid cash for this deal.

How did you add value to the deal?

I painted, changed flooring and light fixtures, tiled and replaced bathroom vanity

What was the outcome?

So far, this STR cashflowed 1k its first month (March 2022)

Lessons learned? Challenges?

I learned that I should not have paid cash, I should have used for several down payments instead

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $83,000
Cash invested: $40,000

Short Term Rental
https://www.airbnb.com/rooms/50489044?preview_for_ml=true&source_impression_id=p3_1649289251_agJNNinYEVnS%2BRMA

What made you interested in investing in this type of deal?

I love to travel and was inspired by a trip to Puerto Rico last year.

How did you find this deal and how did you negotiate it?

I found it on Zillow. Houses were selling fast and I saw the potential in this one so I offered LP and got it.

How did you finance this deal?

Conventional Mortgage

How did you add value to the deal?

I changed light fixtures, flooring and painted EVERYTHING! I also refinished the bath tub, tiled the bathroom and replaced sink/cabinet.

What was the outcome?

This STR cashflows an average of $2,200/mo!

I currently own 2 short term rentals in South Bend IN. One was purchased 8/1/21 and has a mortgage. The other, purchased 1-11-22, I paid 70k cash for. My guess is that it would appraise at 85k now. I thought I'd be able to pull the cash from the second property once I had it ready for STR. I've since learned that banks don't offer delayed financing or cash out refinancing if the property wont appraise for 100k or more. I feel like I've hit a wall. I would like to purchase a multiunit in Michigan City IN. Does anyone offer financing based on proof of cashflow (which averages $2,200 a month on just the first property). The second property cashflowed about $1000 the first month (3/2021). I have bank statements to support my more than 100k self employment income, just don't have my 2021 tax forms from my accountant yet.

The short term rental brought in about $6,000 in 2021. I furnished all of the rooms with all new furniture totaling around $20,000. I have other self employment income of about $200,000 that I’m looking to use the cost segregation to deduct from. From what I hear, this is the way to go. Am I missing something?

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How much is reasonable to pay for a cost segregation study? 
I have one, 6 bedroom short term rental, that was established in 2021, in South Bend Indiana. I’m also working on a 4 bedroom that should be up and running in the next 30 days. I’d like to get the studies to depreciate the furniture and such.