All Forum Posts by: Kelly B.

You should also question their ability to pay.  Since you are becoming their bank, you might ask what their plan is for the property, get their financials, what's their backup plan if plan A doesn't turn out, etc.

Drew, curious how you are financing, JV? If so, 50/50? Looking @ similar.

Nice, KISS( keep it simple sweetheart or stupid is the old saying) PITI about $850? Commercial loan?

Either wait till you own it or perhaps make them sign a wavier.

Hi Robert,

We just got approved for a commercial loan for our VR purchase.  It's a smaller local bank that we've already been doing business with for other investments.  This was a bit different for them so I gave them my analysis of the feasibility of such a project.  They gave us a 4.95%, 3 yr term, 20 yr amort, loan with 10% down and some cross collateralization of another property.  We aren't home free yet as the home inspection found many problems, we'll see if the owners baulk at fixing them.

Good luck

So Garrett, did you run the #s as a vacation rental?  I would think it should work out with just summer business @ $75k because I'm buying one (sfh) over here in Wausau for over twice that amount, on the Wisconsin River, but expect winter business too, due to skiers coming to Granite Peak.  I'll have to check out what's available on VRBO over there.

Very 1st was Sub 2, home equity, then bank financing alot, equity line of credit,  eventually, commercial bank financing, now on the cusp of private lenders.  We both work full time.

Very 1st was Sub 2, home equity, then bank financing alot, equity line of credit, eventually, commercial bank financing, now on the cusp of a private lender.

Some people don't have a problem with it, they budget for it but it does limit your pool of renters.  Our last rental was oil, we were getting push back on that very problem so we calculated the cost over a year, divided by 12 to get a monthly cost and bumped the rent up that much per month with new ad saying "heat included", got a renter shortly after.  But, next vacancy, we put in a gas furnace for $2900.  For our other property that still has oil and there was oil in the tank, I just had them add, I think it was, $100/mo for 4 or 5 months.

You say it is for student housing, if you have parents consigning, perhaps it won't be a problem, or try the cost average payments.

Hey Stephen,

I think you've got a good background for this. To stand out from others VRs and book more business, it has been advised that one should have a blog on your own website describing adventures, activities, & happenings of the area.  If your ski mountain is in Connecticut, you might try to get couples for a romantic stay for the Autumn colors.  For  summer business, it should help if you had a place on a lake or river.  Perhaps for the spring, when rivers are in 'high water' mode, kayakers might be looking for some whitewater, etc.  You could put up a video of someone zip lining.

As I said before, get on the big listing sites or smaller property management sites and study what is already available in the area, check out there calendars every 2 weeks to see how busy they are, what their seasonal prices are, amenities, the look & feel of the place, etc.

Personally, I don't think you need to wait until after this ski season, I bet you could figure this out in 2 wks, it is the property hunting that took us the most time. Start looking at properties available now on Zillow or the MLS if you have access, & try to picture it as a VR, location, amenities, room enough for a family or 2?

Plug into Heather Bayer's podcasts & devour them, disclaimer, I am not Heather, don't play her on TV and do not receive $ for recommending her stuff, lol.

Happy hunting,

Kelly