All Forum Posts by: Christina Hall

We are thinking of getting a cost seg study for an SFR that's a short term rental. We got an analysis from 2 different companies and savings wise it makes sense. However our CPA won't do it he says he can't stand behind the study since he has never done it before on an SFR. So either 1- we find a new Accounting firm or 2- don't do the study

Anyone have experience with this specifically for SFR and for an STR

@Aviv Peretz  sure thing ... we also own in the high desert and planning to build there. I personally see much higher returns only because the daily rate is so much higher. So even with downward cost pressure the margins are still pretty good. 

@Aviv Peretz STR permits in Lake Arrowhead is SB county so they will transfer. we have a 1 property in Arrowhead and another in Escrow. We don't expect the one we have in Escrow to cash flow but will be more of a primary/investment for us. Our other is a cash cow since we got in so early and barely have a mortgage. Nightly rates are way down for the mountain community just fyi. I don't view these properties as great return markets ... there are other markets that will drive a net higher return. So just be mindful of that.

@Mathias Simmons great insight! I feel like goal wise wealth creation is the primary driver … we just started gaining momentum. However the thought of starting new in a different market makes me reconsider. But may be a necessity for sure eg: for wealth creation 
Definitely going to give it a little more time to see how things play out in the markets we are currently in. The markets as a whole for STRs concern me so I see value in reducing risk by paying off the mortgage but more value in continued investment as even if market demand/competition declines wed still be able to cash flow without paying off the debt. Definitely a good problem to have:) 

Thanks! @Joe Splitrock and @Ken BooneAgree with all 

Interest rates on both properties are under 3% but the issue is most definitely cash sitting making no return vs finding a comparable return investment. I like stocks but I like real estate better. We want to keep investing in the same markets if possible, and finding a good return has been a bit of a challenge- been looking for a while. Will definitely give it more time and see what the Spring holds and hopefully we can find somewhere to park the cash and if not than paying off the 1 mortgage I think becomes more appealing :)   

We just purchased our 2nd STR and our 1st is a total cash cow. We have enough cash to pay off the mortgage on that 1st property and cash flow even more OR continue to invest that money into more of the same asset class, more STRs (we are getting better at scaling and managing but its still a grind). It's getting harder to get a good return in most markets- I run the numbers on properties daily, and will likely continue to be difficult in the coming years. In this scenario A) would you pay off your mortgage on the cash cow or B) be patient and continue to invest?

I welcome the conversation! 

*these numbers do not include any repairs or supplies, which is roughly 10% each month
** I expect our 2nd property to cash flow between 2-4k a month once we fully get it going  

@J Zev J. thanks! Yes, this one is near Joshua Tree CA 

@Nicholas L. purchase was conventional with 10% down. Rehab was cash 

Our very first BRRR. Here are the numbers.

Purchase Price: $375,000
Rehab: $80,000
ARV/final appraisal: $650,000 

We decided to take 65% of the ARV on this one. The property is in a short-term vacation rental market and we did a full reno of the interior and also built a pool. The pool was financed at a 3% rate over 20 years. I estimate we will pay it off in 5. If we took 75% ARV we would have covered all expenses + the pool. We purchased the property in May of this year and refi was done in December.

@Heather Hall you mean Big Bear Lake? BBL has a different ordinance than county/Big Bear. Lake Arrowhead is county. And I don’t think that’s been passed yet for BBL… where did you see this?