All Forum Posts by: Blake Dailey

@Mike Anderson though nightly prices are lower off the beach, you can find way more affordable prices and the margins are just as good yet with lower barriers to entry. You just have to make sure the area off the beach is STR friendly. Many places off the beach in PCB are not STR friendly because the city has a tight grip on it where in Panama City it's much more relaxed - so it just comes down to researching the local market.

@Ondrej Brown For my first BRRRR deal I found a great deal and brought it to a partner. If you find a good enough deal, you will be able to find financing.

Another option is to market to sellers directly who are experience distress and pitch them on seller financing, lease options, or subject-to as a way to get in with little money down. Read Brandon Turner's book, The Book on Investing in Real Estate with No (and low) Money Down.

@Anastasia S. Panama City (not PCB) would be a good place to check out. For that price range you could get a distressed property and STR rent it. You would be a little further from the beach, but beach-goers who want a more affordable option will still stay further away and you can attract guests traveling for the military bases. There's not too many places along the coast you can pick up for under $120k, but if you look for good markets close enough you can still find good potential. I operate all of my STRs in Panama City away from the beach and do very well all year round by catering to beach-goes in the summer and working professionals in the off season.

@Jose Zaldivar companies like Advanta and IRA Club specialize in this. They help people roll their money into self directed IRA accounts to use in real Estate. DM me and I'll shoot you my contacts email at IRA club. They walked me through it and it's pretty easy.

@Jose Zaldivar you can either roll your 401k into a self directed 401k to invest in real estate. It's a great option for people who know about it because they can use their retirement funds to fund other people's deals. The caveat is you can't invest your self directed account into your own deal because that would give you direct access to your funds which defeats the purpose. But money made within that self directed account grows with the same tax advantages as your 401k which is great. The same is true for rolling IRAs and Roth IRAs into self directed IRAs to invest in real estate. 

@John Gallagher you could get an FHA loan and have his dad or someone co-sign. But you would need income to qualify for the loan. You would not be able to use the FHA loan for half of the purchase.

If his dad gets the offer accepted he could then seller finance to you and your friend and you pay him back like the bank. If he wants all his cash at once you could buy the house from him using an FHA loan once you qualify for the loan.

It sounds like if this one does not work out you will be in a position come September to qualify for a loan yourself and not have to go a more difficult route. Something to consider.

It sounds like based on your personal situation the HELOC wouldn't hurt your refinance. You could always open a commercial line of credit with your LLC so that it is off of your personal DTI. If not, once you take the money out of your HELOC to use on the BRRRR, it will count towards your DTI. But based on your personal situation with low debt, high income, and great credit you should be fine. Another option could be to refinance with a commercial loan if a residential lender does have issue with your DTI. If you don't go above 50% with the new proposed mortgage it shouldn't be a problem.

Adding STR rentals out of existing units in a multifamily complex can be a great way to increase your returns, or reduce your vacancy rate if you rent it to an Airbnb arbitrager. I have a friend in my mastermind who is doing this and having a lot of success and it benefits the person arbitraging the unit and the landlord/owner.

A great point that real estate is local and strategies that work in some areas may not in others. In the Florida Panhandle Airbnb is hot. It makes a big chunk of the tourism market which carries Florida's economy. And in this area people are leaving the big cities for their trips to get away from places like Atlanta, New Orleans, Birmingham, etc. Hopefully in your area it comes back in a big way like it did here around May! 

Great advice! thanks