All Forum Posts by: Brett Deas

Find a lawyer.

For finding the money, most people would say creative finance, but IMO that is low hanging fruit. What I would do is start a side hustle, or some other form of active income. That will serve you better in the long run than wasting your time trying to go find these 'creative finance' deals like thousands of others right now. Plus, if you have active income you can keep that channel going for more rentals in the future and it can be somewhat reliable. 

As far as having lenders accept the 'rental math', My suggestion would be to look into a DSCR loan. It takes a certain percentage of proven rent as a calculation to see if it can cover the mortgage payment. These types of loans don't really look into your personal numbers (DTI and things) so it can be easy for you to scale as long as you have a good deal.

I'm sure everyone has given you great answers, so I only have one thing. The expenses are always more than you think. I currently have 8 units, soon to be 10, and the expenses have always been more than in the pro-forma. 

6 months all expenses no income. 

That is my rule, I don't necessarily have that at the start, but I contribute 5% till I get that number, and then more till I feel comfortable. For reference my average property value is 1MM. 

I buy small hospitality mom and pops. Going great and all of them are their own little business. What types of businesses are you looking at? 

 Sure. I will send you a message. 

Are you not advertising it on Airbnb? You can set the date requirement to plus 30+ or whatever date you choose. I find a good majority of my mid-term tenants come from Airbnb. 

I have been working in the space for quite a bit of time. Feel free to reach out and we can set up a call!

I buy a lot of my vacation rentals in situations like this. I would recommend a hard money loan/bridge financing. Then refinancing into traditional long term debt. 

However one obstacle I see with your plan is the DSCR loan, How will you get it based on STR rent? Unless the property has a proven history it will be very difficult to find a lender willing to do a DSCR on an STR. You could hold the hard money loan long enough to develop a rental history (I have done this before) but then your debt service costs are extremely high during that period. What were you thinking for this part?

The way I run my pet fee is as follows:

Refundable pet deposit of 200$ and a monthly pet rent of about $25-$50 depending on the pet. The reason my deposit is refundable is it incentivizes the tenant to take care of the place, because once your deposit is non-refundable the tenant doesn't have an incentive to keep it nice regarding the animal. And the monthly rent offsets the cost for the extra cleaning. 

I feel like 150 per pet can be really pricey if the have 3 pets, and do you really need that much?