All Forum Posts by: David VanWert

I use my own, I use real numbers from our STR's, add your PITI, subtract from the annual gross and divide by your downpayment + rough closing costs (didn't include anything for repairs or upgrades, assume its 100% turnkey).

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Moves the needle a bit but not enough to make it worthwhile IMO. Obvious I don't have all the details but would gather that hovers around a 15% CoC based on my calculations depending if there are repairs needed and what your overall monthly costs would be.

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Investment Info:

Single-family residence buy & hold investment.

Purchase price: $630,000
Cash invested: $135,000

$ bedroom/ 4 bath with private indoor pool

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Investment Info:

Single-family residence buy & hold investment.

Purchase price: $1,050,000
Cash invested: $220,000

6B/6 Ba with private lake in Smoky Mountains

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Investment Info:

Condo buy & hold investment.

Purchase price: $575,000
Cash invested: $120,000

Buy and hold STR in Mammoth Lakes, Ca

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Based on the 900K PP and AirDnA estimates, even if you went up to 100K in gross, still doesn't look great. If you are doing a standard investment loan with 20% down your CoC is still really below what most would consider a baseline return of 20% CoC for STR's. I'm personally "settling" for a 30% CoC and ideally wanting 50% CoC, although very hard to find in todays market. Even self managing all of the other reoccurring costs will leave little NOI left for debt service and profit.

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Originally posted by @Steve Vaughan:

Originally posted by @David VanWert:

I'd sell. That's a lot of house in a pain in the bite county out of your normal market. It's just across the Columbia from me but I only have 1 lonely house there, and that is a lease with option to buy looking to exit.

The market is great for sales like most places. Take the momey and run!

The property is on San Juan Island in Friday Harbor. that is part of my hesitation, that any "boots on the ground" on that island is proving to be very difficult to get anything done everyone is on "island time" and are very expensive so the maintenance I feel will be my biggest headache. I'm not worried about the remote part, we have two other STR's both of which are not in our area.

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Originally posted by @Nathan Gesner:

I would normally advocate holding it as a long-term rental while you go through the approval process. However, I'm not a fan of the politics in Washington State and think it may be a mistake to keep property there if you're able/willing to move the money to a state with reasonable Landlord-Tenant laws and courts that err on the side of justice rather than social justice.

Whether you hold the property and get a line of credit, or you sell the property and cash out the equity, you still have money to play with. Take advantage of the strong sales, buy multiple properties somewhere else, and enjoy the gift.

Good insight, wasn't thinking about the politics side of things. Either with sell or hold and cash out refi, we will be picking up 2-3 more STR properties with it.

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Originally posted by @Michael Baum:

Do tell @David VanWert. Where is that property at? I assume that property is in Chelan County? I know they recently extended their moratorium on new permits.

For me it would be hard not to look at the reduced taxes on the step up. There have been all sorts of rumblings on the Biden administration eliminating the step up along with the 1031 exchange and the like. That is not a guarantee of course, but I would be worried.

It is in San Juan Co, in Friday Harbor. I could be wrong but as long as we inherited it before any 1031 change took place we would not be affected.

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Long story short... need some sagely advice.

Inherited a property from a family member passing late last year. Property is in a great STR location in Wa state.

Once we took possession we did a complete rehab on the property, floors, kitchen, new bath, the works, We had intended to turn it into our third STR.

We owe 150K on the property and ARV is roughly 800-850K. The original intent was to refi, HELOC and role into 2-3 more STR's elsewhere (likely the smokies).

Come to find out the town just passed a moratorium on STR permits last week for a minimum of 12c months, will likely be closer to 18 months once you get through all the paper work and get approval. Ouch...

Question is do we hold, and covert to an LTR for a year or two to cash flow a bit, still pull some equity and HELOC with the intent to STR when they allow new permits again.

Or, do we just move the property, take advantage of the hot market and step-up basis on the tax break since it was inherited after a death and take the money into other properties.

I'm hesitant to sell given the "goose that laid the golden egg" with nearly 700K in equity that can be tapped, paid off and repeat....

Would love some thoughts!!

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All Forum Posts by: David VanWert

David VanWert has started 24 posts and replied 99 times.

Post: Help me analyze this deal!

Post: Help me analyze this deal!

Post: $ Bedroom 4 Bath in Pigeon Forge TN

Post: 6 Bedroom STR in Sevierville TN

Post: 3 Bedroom + Loft STR in ski town

Post: Help me analyze this deal!

Post: Need Advice! Sell, Hold and LTR with future STR in mind?

Post: Need Advice! Sell, Hold and LTR with future STR in mind?

Post: Need Advice! Sell, Hold and LTR with future STR in mind?

Post: Sell or hold and refi + HELOC?