All Forum Posts by: Christian Canavarro

Hi BP Family,

My partner and I just had to back out of a deal on an STR in Vermont because we were unable to secure 90% LTV with a conventional lender. Since a 10% down payment is obviously the key to unlocking the full potential of investing in STR's and scaling the business, I'm hoping someone can shed some light on how they were able to execute on those loans.

I don't understand how you can start out with this investing strategy without having enough personal income to cover a second mortgage? Am I missing something here? Lenders won't consider any projected STR revenue to qualify the property because it's intended for personal use, right??

Thanks,

Christian

@Jennifer Donley Looks like this topic is right up your alley! Thanks a lot for the quick response and the great insight.   

Hi BP Friends,

I have a tenant in PA that reached out to me a few months into her new lease asking me to pursue the process of accepting Section 8 vouchers. After completing the paperwork with the county HUD, the agent came back and said that due to their income analysis on my tenant, they would only make contributions if I cut the rent in half. Since I'm not willing to do that, do I have any other options? The tenant's brother is not on the lease but helps her financially since she is a widow. He offered to make a lump sum to pay off the difference in rent that I would lose out on for the remainder of the lease term. Another suggestion was to draft a separate agreement with him to cover this lost balance each month. Obviously none of this is giving me a good feeling. I'm trying to work with them, but I also don't want to put myself into an accounting mess and misrepresent myself. Any suggestions or experience with this type of issue?

Thanks Everyone,

Christian 

@Marissa Bialek 

Hi Marissa, how did you make out with your renovations? Also curious to hear about how your first winter season is going up there so far. Have you honed in on any management systems yet? I've been scouting out iGMS and Lodgify.

Christian

@Bruce Bailey

Hi Bruce, I would start with checking the leases that are currently in place for your inherited tenants. If they are on month to month, I'd use that as an opportunity to screen them for myself, then assuming they meet your criteria and you want to keep them, get them signed on to your own lease. Until then, review their active leases. I sent my inherited tenants an addendum stating everything that I wanted to change in their lease, including naming myself as the landlord, updated rent collection terms, and lease renewal terms.

My partner and I have used Cozy for our portfolio so far, but we are currently transitioning to Landlord Studio as it seems to provide a one-stop-shop for all things property management. Specifically rent collection, document storage, accounting and financial reporting, and auto reminders and template responses to tenants. 

Good luck! 

Christian