All Forum Posts by: Kenneth Garrett

@DAVID DYNNESON

STR blow the doors off of LTR. I bought my first STR and the income is 6 times what my LTR cash flow could ever produce. I self manage my LTR and am doing the same on my STR. It definitely depends on location, just like everything. I bought in the Destin Florida area.

I used the second home (vacation home) for my STR. Requirement was 10% down and use it at least 14 days a year. I don't think they track it much on how many days you stay there. I always planned on using it a couple times a year 2-3 weeks at a time.

@Jordan Parham

Use the enemy method @Luke Carl talks about.  Use comps of similar bedrooms, baths, square footage and location on Airbnb and VRBO.  Same concept as long term rentals.  

@Orly Howard

Another vote for the Schlage Encode.  I assign a new code each for each guest.   I can lock and unlock the door from 1000 miles away.  It works great.  WiFi capable with battery backup.  

@Thomas Fleming

I get paid from VRBO every Monday after the Saturday check in.  Are you complaining because they are holding the funds until checkin?  

@Saravanan Varadan

Calculate all of your expenses.  I mean everything.  Then take your income.  You can then determine your profit.  I calculated my monthly expenses at $3200 that’s $38400  Income is approximately $58,000.  Year is not over.  20K profit.

@Tim Otto

You can use commercial financing. No DTI. They only care about whether the property cash flows. 1.25 DSCR or better typically. You have to own the property in an LLC or other entity. Interest rates are higher usually 1% or so higher. The mortgage might be a 20 or 25 year loan. I have a number of 5 year loans amortized over 20 or 25 years. Dow payment is higher 25%-30% You can use commercial lender on single family homes and up.

@Casi Long

Bought in Miramar Beach which is next to Destin.  Super profitable.  Be prepared to get out bid on a few properties.  Be selective on what you want to do.  It’s easy to get caught up on bidding too high when you keep getting caught in multiple offers.

@Talley Haines

Debt Service Coverage Ratio

Net Income/Debt Service

@Asa Davis

I have done a number of commercial loans on my BRRRR projects. Agree with the others; no DTI, you'll need a DSCR of 1.25 or better and you will need to own the property in an entity. The rates are higher, but you scale quicker this way because DTI doesn't hold you back.