All Forum Posts by: Luke Hoge

Thanks @Julie McCoy and @Elise Marquette - Yes my DTI on paper looks close to 100% (to a conventional lender) LOL!

The past 2 years ALL profits from ALL STRs have been put back into the next STR. We've been focused on expansion and growth so I actually (again on paper) haven't taken any of the profits from these Airbnbs.

I think I'm just going to have to be prepared for 65% - 75% LTV and higher interest rates moving forward.

Thanks again for the help!

Luke

https://www.amazon.com/dp/B00N...

EDIT: I also swap the locking knobs from the front doors with the hall/closet knobs within the house that I want to turn into owner's closets. This is just so I don't have to try to find matching doorknobs but saving money is nice too.

Hey Andrew - We have a property with 11 doors (2 front entrances).

We put smart lock kwikset deadbolts on the front doors and replaced those corresponding locking knobs with hall knobs (aka: non locking knobs) so that it is impossible for guests to accidentally lock themselves out.

The other 9 doors we left as-is because, even if a guest accidentally locks one of them, they can always go around and get in the front door with the code.

Hope this helps and congratulations on your new acquisition!

I'm on Airbnb #5, have interviewed over 20 lenders, and am fighting to get a REFINANCE (80% LTV rate and term, no cash out) loan for one of my properties (which has a balloon in June). I've never had a problem getting a loan before because my of my job income but now that we have enough revenue from our rentals, I'm not working. Also, since these are NOT LTRs (but vacation STRs) I don't have leases and I write-off all of my expenses on my taxes so it looks like my properties (that do VERY well) "take a loss" on paper.

So now I'm looking at DSCR loans, or loans specifically for Airbnbs but even these require an appraisal which will be based on LTR estimated rents! But these are waterfront lake houses and not good LTRs!

Are all lenders afraid of Airbnb Right now? My revenues have skyrocketed since Covid so I'm not sure why there is still reluctance. I guess because it is still new? 

Any help would be appreciated!

Thanks!

Luke

Hi Bigger Pockets! My wife Caitlin and I are newly financially free from our real estate investments, mainly vacation rentals. Almost all of our income is from STRs with some LTR income as well. 

Because of this, it has become difficult to get financing on our most recent deal. Using a 1031 from a former property, we bought a 5br/5ba lake house in Virginia for $439,000. To do so we took out a Private loan for $351,000 which will balloon in June. Aside from the $88,000 down payment, we will have invested another $50,000 in renovations, improvements, and furnishings. When it is all said and done we will have invested over $130,000 out of pocket.

Now we are just looking for a good mortgage. This will be our 5th short Term rental and the one we are the most excited about. We cannot do another conventional loan because short term/vacation rental income doesn't offset debt in the same way that leases do, especially after all of our write-offs and tax depreciations (which we've gotten pretty good at). We also are not interested in using a Co-signer if we can avoid it. 

I have proof of income from our other Short Term rentals for 2020 all of which thrived in spite of Covid. 

Looking forward to feedback, tips, and experience! Thanks All!