All Forum Posts by: Brooklyn McCarty
Brooklyn McCarty has started 0 posts and replied 1243 times.
Post: AIr bnb minimum stay
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I would reach out to Airbnb and also Hospitable and see if either of them can help you out.
Post: Refi options for a six-unit STR
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So - you transferred it into a boutique motel? I would reach out to Brenna Carles at themortgageshop.co (co not com) She specializes in STR financing and may be able to help.
Post: Cash on cash return
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COC is going to depend on the investor. Are you investing for appreciation? Tax benefits? Or cash flow? All of these things matter. If you can find 12-15% right now then that's pretty good IMO. But someone else might come along and tell you they will go for 10% or maybe they won't go for anything less then 20%. Every deal is different!
As for Rabbu, I find Rabbu data to be very hit or miss. Never rely on just one data source. Instead use two or three data sources and average them together. Pricelabs has a reeeeally in depth market dashboard you can sign up for when you are looking at properties to use.
Also, the enemy method as made popular by Luke Carl is ultimately the best tool in your pocket!
Post: Must Live in 2-4 unit to rent?!
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Best thing you can do to find out for sure is find out the city regulations yourself either with a quick google search, phone call, or even visiting if you have to.
But finding "alternative paths" to regulation is not something I am interested. I never want to flirt with the law. This is why I like to buy in true vacation markets.
Post: Who's the Host?
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I really don't think it matters too much.
Make sure you get a RA signed at the time of booking and make sure the RA is between your LLC and your guest.
I would also consult with your lawyer if you need the LLC or not.
Agreeing with Michael though, I think that LLC or PM names as the host are impersonal.
Post: LLC for vacation rental
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I would ask your CPA and your attorney. This is going to vary from each person.
Post: Favorite STR Property Management Software?
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Hospitable is a great choice, especially for first time users. It's easy to use and has great functionality.
Most PMS will offer a free two week trial. I would test drive several of them and see which ones fit best for you.
Post: Golf simulator added amenity for STR
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I think this would depend on the market. Somewhere like Scottsdale, this might work!
Post: STR Rental Agreement
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I would recommend consulting with your insurance and then getting your lawyer to draft one specific for your property.
Post: STR for SFH: Does it make sense?
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Quote from @Alex Yakubovich:
Hello everyone,
I have some questions about STR (Short-Term Rentals) and would greatly appreciate your help. Let's consider the Seattle Metropolitan area; an SFH (Single Family Home) would cost around $1M, and the taxable income is $500k.
My questions are as follows:
- 1. How crazy is the idea of buying an SFH for STR with accelerated depreciation?
- 2. Would a Cost Segregation Study work well for an SFH?
- 3. If we purchase this year, would accelerated depreciation apply only to the remaining part of the year or for the entire year?
- 4. Is it nearly impossible to obtain a mortgage and operate an STR? Would I need to plan to live in the property for one year as my primary residence to qualify for such a mortgage?
- 5. Would a second home mortgage work for STR? For instance, Rocket Mortgage mentions that a property may qualify as a second home if rented for no more than 180 days in a calendar year. Could I do STR with a second home mortgage?
- 6. If I am the only one materially participating in STR, can we deduct STR depreciation from my spouse's income if we file taxes jointly?
- 7. If I opt for a two-unit house instead of an SFH, residing in one unit and using the other for STR, would accelerated depreciation apply only to one unit?
First with a metro market you need to check the regulations and then also run your numbers and make sure it's profitable. Regional, drivable markets are where I like to invest.
All of these questions work for SFH STR, yes you can cost seg, yes you can have a mortgage. I would highly recommend reading Bigger Pockets Book written by Avery Carl called Short Term Rental, Long Term Wealth. It will help guide you with all of this.