All Forum Posts by: Jon Martin
Jon Martin has started 36 posts and replied 1081 times.
Post: Everyone and their mom is on Airbnb
- Posts 1,092
- Votes 959
Quote from @Ryan Thomson:
@Dan H. Thanks for the recession anecdote. There has got to be some good data about recessions and vacation and STR rentals. I wonder where we can find that.
People don’t stop spending money in a Recession, they change how they spend it. Maybe they pack a lunch 4-5 days a week instead of eating out, but they still gotta eat. I remember seeing how single cup coffee makers sold like crazy during the recession because people wanted to only make a single cup instead of a whole pot that partly goes to waste.
Same is true for travel- instead of going to Europe or the Caribbean, maybe they drive to a national park or fly to a trendy city. So some markets might do better, question is which ones?
Post: QOTW: What are your "hard pass" items when evaluating real estate
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- Votes 959
Quote from @Dong Yan:
Quote from @Jon Martin:
directly fronting a busy street.
you think the locating facing the busy street is a deal breaker?
For a personal residence and/or future sale to a family minded buyer or renter, yes. Multi family property or STR would be ok and potentially a bonus in the right area.
Post: QOTW: What are your "hard pass" items when evaluating real estate
- Posts 1,092
- Votes 959
directly fronting a busy street.
Post: STR loan options in these times?
- Posts 1,092
- Votes 959
Quote from @Wesley Myers:
Very helpful info everyone. What about putting 10% down vs 20%? Keeping more of my cash now vs greater cash flow over time?
I would always vote to hold on to cash in reserve or use to deploy for the next investment. Cash is king
Post: STR loan options in these times?
- Posts 1,092
- Votes 959
Quote from @Demon S Rogers:
@Jonathan W. Can you clarify what you mean by carrying one on your credit at any time?
From what I understand you can not apply for an additional second home loan. You would have to refinance into another loan type, at which point you can apply for it again. IIRC
Post: Help me help my friend stay in her house
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- Votes 959
I’m of the opinion that if she is not credit worthy and can’t come up with the buy out money and rehab funds, then she probably can’t afford it.
Sorry if that sounds harsh, but that’s my impression from the info provided above.
That said, I think @Brad S. probably had the best advice, specially the ADU with STR on the side. But then you are still back to the issue of coming up with buyout and rehab funds while also being hard to lend to.
Post: Research on Michigan cities
- Posts 1,092
- Votes 959
Quote from @Montez B.:
@Jonathan W. Okay thank you I appreciate you a lot ! Do you have any properties in them areas ?
No- I do not, however I did grow up there. Ann Arbor keeps growing and has great appreciation. As a result, it is pulling up nearby areas (Ypsilanti, Brighton, Canton, Plymouth etc).
The Detroit suburbs closer to 275 and 696 seem to be on the safer side. Royal Oak and Livonia are a good call but I can’t comment on current market pricing. I see no reason why we won’t continue to see growth and infill between those 2 cities so I’d consider all of that a pretty safe bet, especially if it’s freeway convenient.
Post: STR loan options in these times?
- Posts 1,092
- Votes 959
Quote from @Nicholas Covington:
Quote from @Wesley Myers:
Thank you all. Interesting responses. I will tell you that due to my current career we don’t currently have a mortgage or a 2nd home loan. We live on site at a state park and housing is provided. Could we claim this mortgage as our primary residence even though it would be a rental? The 2nd home sounds intriguing as well.
If you plan to rent it long-term (a lease agreement on the property), you cannot claim the mortgage as a 2nd home. This is also fraud.
As Raymond has kindly pointed out you are able to have this property as 2nd home if and only if it's going to just be a STR and you plan to occupy it some timeout of the year. A lease cannot be present as you cannot have any restrictions that prevent you from occupying the property at any time.
Today 2nd homes rates will be higher than investment property rates anyways so they only benefit now is just the 10% down.
OK then this makes sense. I do plan to use it (even if it is sparingly), although it will mostly be rented out as STR.
Post: STR loan options in these times?
- Posts 1,092
- Votes 959
Quote from @Nicholas Covington:
Quote from @Jon Martin:
I used a 2nd home loan. The lender doesn't care if you rent it out on the side because that's pretty standard for a lot of second homes. APR was close to a standard 30 year owner occupied and only required 10% down. You are only allowed to carry 1 on your credit report at any given time.
Actually, a lender does care if you rent it out. That is why Fannie Mae and Freddie Mac just made 2nd home loans way more expensive because so many people were committing occupancy fraud. So this is very bad advice.
Well, if that’s true then I stand corrected. I was honest with the lender about my intentions so I guess this one is on them if that’s the case.
Post: STR loan options in these times?
- Posts 1,092
- Votes 959
I used a 2nd home loan. The lender doesn't care if you rent it out on the side because that's pretty standard for a lot of second homes. APR was close to a standard 30 year owner occupied and only required 10% down. You are only allowed to carry 1 on your credit report at any given time.