All Forum Posts by: Kelly B.

Got the verbal loan approval this morning for our VR purchase, closing in about a month!  Tons of stuff to buy & do.  5 bed / 2.5 bath on 1.5 secluded acres, will probably set it up to sleep 14.  It's on a river, on a snowmobile trail, close to skiing, and whitewater & flat water kayaking.

Also had a chat with an acquaintance/friend that is interested in being a private lender for our long term rentals.   

Thank you BP, Heather Bayer, Matt Landau, & Captains of the Deal!

I'll bet he is sitting in jail, check online.

Sounds like they are in breech of contract and owe you $735!

Sorry having problems with Firefox & the @ mention trick, switched to Chrome.

Gary,

Yes, Heather Bayer is awesome.  Check out Matt Landau, he is back doing a few podcasts.

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@Gary Ennis

@Gary Ennis

Welcome Stephen,

I like your plan, I'm in the process (accepted offer), of my 1st vacation rental.

Here is a link to the forum for VR (vacation home rentals),

http://www.biggerpockets.com/forums/530-short-term...

You may find it full of useful info as well as reading/listening to anything from Heather Bayer (who has her own podcasts), & Matt Landau.

Check out VR listing sites like VRBO & airbnb, if you haven't already, you will see what your competition is doing and decide what amenities you will need, to be competitive (like perhaps a hot tub).  

Think of how you could get "low season" business which could help your bottom line immensely.  

Will you be buying an already up and running & furnished VR with a book of business (you may pay a premium for), or a property that you will need to furnish ( $10-$20000).  Taxes and cleaning are direct pass thru expenses to your guests.

Have a plan for when something doesn't work (furnace, guests can't get into property, water in basement, etc).

Keep us posted, it would be great for you to start a blog or diary here on BP for us to follow your progress!  It would help a lot for others thinking about the same thing.

Good luck,

Kelly

Here is link to appropriate forum to learn more,,

 http://www.biggerpockets.com/forums/83-rent-to-own...

$20 to $50 / month around here depending on size.  Many renters with pets are more responsible with perhaps less damage than ones with kids.  Also, insist on seeing the vacination records of the pet cause renters who take good care of their pets tend to be better renters.

@David Perez, yes, they are a legit alternative.  The idea is that you pay an upfront option fee (1 to 10% depending on the owners market/motivation/competition) to purchase the house later at a predetermined price while you rent it, usually at slightly higher market rents (& you may be given rent credits for monthly on time payments which will be used for your closing costs at time of purchase).  The option fee and rent credits are NON-refundable if you are unwilling/unable to purchase.  So, similar to a land contract, in the respect that you have an upfront downpayment, and above average monthly loan rate payment, which you will forfeit if you stop payments.  In both instances, (because your credit is not so good) you are higher risk and are paying more to mitigate that risk (just like a bank will charge you a higher interest rate for a loan if your credit is poor).

Just a very brief overview.

There is a forum here on BP you should dive into but some things you should look out for as a 'rent to owner' are;

1.  Make sure the owner IS THE OWNER!  Check property tax records on line.

2. The end purchase price to be realistic in a year or 2, it will need to get appraised by your bank prior to purchase ( some owners will set that price with you using an appraisal prior to your agreement plus perhaps 3-5% per year for appreciation)

3. This should be listed as #1, go to your bank, find out what you need to do to improve your credit & how long it should take then Do IT, cause if you don't, you won't be buying that house in a year or 2, possibly get evicted & loose your option fee!

4. You are usually responsible for the cost of upkeep on the property but make sure the owner is for things say for more than $1000, so if the furnace quits & needs replacement it is on them. Think about paying for a home inspector to tell you if there are any major problems with the property.

Personally, I only accept people who do go through a credit improvement Co etc. so I know they actually have a much greater chance to be successful, I also have extended their timeline if they were unable to meet the original.  Some charge an additional fee for that, I don't, I'm actually routing for them.

I'm sure others will chime in and fill some gaps in my thoughts.