All Forum Posts by: Clay Massey

I have stayed consistent in my industry (w2 income) for many years. January 2021, I lost my job (Covid challenges). I started a new w2 job in the same industry, July 2021

I have 1099 income on my taxes for the last three years and I am being told by a lender that they will not consider my 1099 income due to the gap in my w2 employment in 2021.

Is this lender specific? Or a lending standard (not considering 1099 due to gap in employment) ?

This is related to a conventional loan for primary residence. Any and all info or lender referral is greatly appreciated.

@Janea Crum

I do not have experience in the arbitrage side of the STR world. I do manage vacation rentals and the time and effort you are going to put into finding your deals (leases) which you are financially responsible for, I highly advise you start researching the actual property management business side of thing and manage other people's real estate for a chunk of the gross revenue with no financial risk. Find 7-10 properties that gross 30-50k/year and you make potentially six figures without being responsible for paying the rent. You might even find yourself managing a luxury home or two and providing concierge services as another arm of the business

Build a housekeeping team, and even a maintenance person and find yourself as a 3rd party service provider for other management companies etc…

Plenty of second home owners that are frustrated with their current manager and looking for a new refreshing option. Just my perspective. Good luck!

@Riaz Gillani, thank you for your input. I am approaching 1 year of STR income with this property in just a few months.

65 LTV is expected. I will simply keep narrowing my search and interview process with lenders

Hoping someone can pass along a lender that offers refinance options for non warrantable beach condo in Florida.

-Healthy HOA

-No current liens or loans on condo

-Healthy STR revenue stream

@Chris Phillips Could a personal loan work to assist with getting into your next property? a good tool is https://www.scotsmanguide.com/ . Enter your situational criteria and the type of lender you are searching for and it will narrow down your options.

@April Clark

A lot of STR properties require a "ramp up" period. Generally speaking, it takes the first year of marketing on all the different platforms (Airbnb, VRBO etc..) to reach a sustainable listing. The longer the better, returning clientele, more positive reviews etc..You starting it yourself and then hiring a local management company could hurt you. Most PMs will not use your listing, they will be creating their own, hence starting all over from the beginning with no reviews or listing longevity. Factor in your local PM commissions into that potential gross rents (40k- commissions) you are now down to about 30k.. minus maintenance repairs, late night service when the heat or AC goes out..

I am not familiar with Texas STRs but I actively manage a portfolio from Breckenridge to Vail, Colorado and would be happy to share more details over a conversation.

Best of luck

@Sean Ross Thank you. Coincidentally I was on the phone earlier with your office (1031x.com) and was directed to work with Toni. The information I received over the phone was a huge help. Thanks for taking the time to respond.

@Taylor L. Thank you. Closing is scheduled for April 21. And from what I have learned so far, I need an exchange since the property is considered an investment property.

Thanks for tagging Dave for expert advice.

Scenario:

Inherited a singe family home 12 years ago (owned equally between 3 parties). One of those years it was rented to a tenant (8 years ago). All other years the house was simply a mountain getaway for the family. 

The house is currently under contract to be sold. If and when the sale is final, should I plan for a 1031? I already have a plan to reinvest the funds back into real estate within 90 days post closing.

Any personal stories, experience or advice or truly appreciated. Please, let me know if you need more details related to my specific situation. Thanks BP

@Andrew Pokrzywinski @Cody Kinser

Now that we all have experience living through a pandemic and watching American politics unfold, Florida is not a bad place start your first STR. I manage a portfolio in Breckenridge & Vail Colorado and seen how quickly business can be forced to halt. The business can be lucrative for both owner and manager. As Andrew points out, be prepared to cover costs that your long term residents were covering i.e electricity, cable tv, furnishing etc.

Andrew, my wife and I have considered purchasing an STR on the Atlantic coast of Florida. Would be interested to see projections on 1-2 bed condos in a destination that performs. Do you see the 1-2 beds gross 25k+ annually? (Vague question, I know) would love to get into more detailed convo.