All Forum Posts by: David VanWert

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!! 0

Thanks! And yes, happy to pass on a discount if you ever want to come visit and research the area, hey, its a tax write-off! 

@Matthew Forrest Sure, here is a link to our listing. https://www.airbnb.com/rooms/3...

It is a 3B + loft (which I think is key as the ability to have two families share to cost is a huge add to your ADR)

This year has obviously been very challenging given we have had virtually zero STR income for Mar, April, May, September and December. Even though we have been shut down 5 months due to COVID or fires we were still able to gross a bit over 75K YTD. We were projecting 110K-120K gross but COVID had other ideas, hoping next year will be better.

Happy to answer any questions you might have.

We have a place in Mammoth Lakes that does very well. However, given the crazy increase in property prices on top of CA property taxes are making in tougher to find opportunities that cash flow well. We've started investing in STR's out of state that are far more lucrative even just considering the difference in property taxes alone.

Yeah it’s less than 100’ I believe.  Do you think AirDnA is too high for the area? We have discussed renting as two units but it’s twice as much to manage so would prefer to keep it one but if the demand is for smaller we would consider it.  Airdna is showing 80-90k annual gross but not sure how realistic that is.  The home will be very nice when complete but no water view does hurt a bit but a private pond and fire pit I think help even it out a bit.  

Yes @Michael Baum thanks for the info on the str regulations, definitely familiar with them.  Already have the process started and working with someone that specializes in helping people get all the paperwork sorted.  

The property is a 3+1 main house and a 2+1 guest house with game room.  It’s on 5 acres with large yard, large pond, fire pit and woodland trails about two doors down from the lavender farm in the middle of the island about 10min from Friday Harbor

Hello all,

In the process of a full rehab for a 5 acre property in Friday Harbor Wa. Great little community with lots of visitors during the spring and summer. Was wondering if there were any investors here that own properties on the island? Would love some insight and validation of info we are pulling from AirDnA. TIA! 

@Albert Bui thanks so much for the reply would love to chat when you have some time.  Please DM me and we can set something up.  Thanks!

@Jon Crosby thanks for the insight.  The TN property we have is new only a few months old so I think that’s what is pushing it over the edge 

Need some help fellow STR investors! Have 4 properties, one in WA, two in CA and one in TN. Trying to refi three of them (all but the TN property) and running into a road block that the lenders I'm coming across won't count the STR income so it's throwing the DTI off. Anyone have resources for lenders that can work in CA and WA and STR friendly? Thanks for your help!