All Forum Posts by: Kerry Baird

@Henry Lazerow you tickled my brain with your Lightstream comment.  I'd forgotten about that type of loan.  And @Jesse Rivera, I did not know there was a low-doc or bank statement HELOC. That is interesting! Thanks for posting that nugget.

Your situation is so difficult, and the best plan is to get financing before we need it. 

It is so much easier to get a HELOC or second mortgage on a primary residence, and much more difficult and expensive to get one on a rental house. Conventional lending requires tax returns, good FICO and reasonable DTI.

DSCR mortgages are a business purpose lending that does not look at DTI. You might also consider private money loans, local lenders and so forth.

My local municipality is changing ordinances to be far more restrictive, and I notice a number of houses up for sale that were STRs.  It is the snowbird season in Florida, so it is a reasonable time to catch attention of those buyers.  

That was a fun read.  I am amazed to see she drew sketches on napkins and took the vision all the way to fruition.  I’m guessing we have all imagined living in a Hobbit house…amazing that she actually built one.  

@Chris Seveney, right on! 

One time when I bought on owner financing, I totally forgot that I didn't have property taxes included in my interest-only payments to the seller.  Yikes.  

Variables that might change that number would be size of house, number of beds, extra duties you want the team to do (like fetch supplies) and perhaps the drive to a remote area.  I'm pretty sure every cleaner everywhere hates making bunk beds, as that adds time and complexity  There will be extra hair and possibly more if you allow pets. 

That stinks.  Hard to imagine she had the mobile home demolished…! 

When I was younger I sold a condo with a lease option, but didn’t do it correctly; I had to evict and foreclose.  

Thank you for posting.  I’ve not filed yet and need to.

So, that specific area isn’t in a high-growth stage.  You have to sell to realize your gains, and will lose on the transaction at this time.  The properties are rented and the debt is reducing via tenant rents.  You have tax benefits through depreciation and you are gaining experience via property management.  Raise your rents annually.  Hold steady.