All Forum Posts by: Grace Porritt

Hey Mark,

    I just went through this myself.  I have a lot of passive income and not a heck of a lot of W2 income.  Getting a personal loan would have been a nightmare for me this year.  I decided to go with the commercial route and it was a breeze.  I have a great relationship with the bank and they based the loans on cash flow.  I am paying 4.3 and they went 25 years, locked for 5.   I was pleased with this.  It seems like I refinance about every 5 years and pull out cash...so I really didn't care.  I am also not sure that I will keep either of these properties more than 5 years.  I have jumped back and forth from personal/commercial loans over the years depending on my current situation.

      I plan to take out a second on one of the properties and possibly by a 3rd.  My bank was hesitant to loan on a 3rd property at the time, so I decided to just give it all a rest for a couple of months.  I will likely go to another bank for this loan.  I do not like all my eggs in one basket. 

Me Again....so I have almost completed my exchange.  I have purchased two properties.  Here is the breakdown.

Selling price $530,000

Purchase #1   $230,000 with $80.000 down.....$150, 000 loan

Purchase #2   $366,000 with $170,000 down....$200,000 loan

I have a check for $7600 made out to my bank that needs to apply to the principle of #2.  Is there a way to set up some sort of escrow account during my 180 days....so that I can pay principle from that account and I can provide the interest part.  I have a great relationship with the bank, so I think that they will work with me.  I just do not want to pay taxes.

Boulder, Co has done the same. We can only rent STRs in our own homes and not in second homes. I agree that AirBNB and VRBO should take this on. Our towns should just address problems with parking, noise, etc. and fine for these accordingly. I do agree that owner's or a property manager should be within a few miles from the rentals. I prefer the shorter term rentals because my property is better maintained. Boulder has a huge need for the ST furnished rentals because of boot camps, CU and athletic events that come through our town. The hotels do not adequate service for families that want to stay together. I am not certain how I will proceed at this point. Currently, I have longer term renters in my STR.

Is the purpose of the BRRR to pull out cash to purchase another investment?

I am looking to enjoy my next investment personally as a mini retreat.  Denver is an easy access for me.  Is anyone interested in sharing a condo purchase in downtown?  You get M-F and I get the weekends. This might work for someone that needs a place downtown to work to cut down on travel time.  I would like to rent it out some of the time.....details to be worked out. 

Still in the brainstorming stages.  I just want to have the ability to use it on the weekends when I want to.  Other ideas can be placed on the table.

I have an opportunity on a 1031 exchange to invest some cash that I want it to cash flow well in a rental market. Furnished rentals can generate $1000+ per bedroom in Boulder. I am not sure about Denver.  I have always had houses and recently I am considering Condos because of less of a maintenance headache. 

What neighborhoods are best for rental income?  I prefer a good walkability to Downtown.

I also would like to enjoy a weekend every month or so in Denver as a get away. I plan to furnish the condo and rent it out STR or M to M. Is there a market for renting M-F and keeping it available for the weekends? I am thinking of the executive that flies in and out. I know that hotels are actually cheaper on the weekends.

I have a 1031 in progress with around $260,000 to invest in Colorado.  I just purchased a condo for $235 for my daughter, so I am not expecting much of a cash flow there.  I think Mark is correct that the upside is going to be on the sale side of things.  My brother just bought a condo in St. Augustine, Florida.  Does anyone know anything about that area? I will have another  $180,00 to invest....any suggestions?  I am not a fan of the Clearwater area.  I might also be interested in the Pensacola or Destin area.  I have friends there.

Thanks everyone!  I have decided to opt-out of selling to the MMJ.  I have posted my property on LoopNet and had a ton of hits!!!  Now I just need a reasonable real estate lawyer to look over my deal and someone that is excellent at looking at my personal/tax financial picture.  Likely two different individuals, but it would be nice if someone could do both.

I place a property on LoopNet and I already have an interested buyer for $520,000 (my listing price). H2e wants to have the first option to purchase and see if he can put together financing.  I told him I would take $500 to give him that opportunity.  I told him he could have the money back, if the deal does not work.  I do not want to give him too long....others are interested.  I am not sure if this would be called earnest money or something else.

Can someone help me with some wording for a receipt?  I just want to give him a couple of weeks for a more solid contract/agreement.  I am looking at doing a 1031. 

Thanks in advance.

Hey Dan,

I would agree with Jay about the difference between VRBO and AirBnB. I am in Boulder, also a college town. Our city council has been cracking down on STRs and I am not sure yet how to navigate around the new ordinances. Currently, they disallow STRs that are not occupied by owners as a primary residence. My STR income has been very lucrative. At the very least, I will continue to rent my home furnished and generate additional income that way. Once you make the additional investment in furniture, you can earn at least 25% more on a rental.

Location is very important on an STR. In Boulder, folks want to be close to what is happening. Rentals more than a mile or two from the university or downtown are more difficult to rent. I also like Jay's idea of working with corporations or schools. I am actually meeting someone that has a small start-up in Boulder tomorrow at my house that needs housing for educational boot camps. I would love to set-up something long-term with them.

Grace