All Forum Posts by: Michael Bowie

@Julie McCoy That is correct. Since my properties have to be zoned commercial in my area they were willing to look at it like any other commercial, income producing property. 

I admit, I'm not exactly sure about the nuances the difference between DSCR and DTI bring up. However, DTI is measuring your net profit (income) while DSCR is measuring your NOI.

@Luke Carl You may not have a million dollars but OPM does!

@Luke Carl Oh, and it appears that you’re right that Winston-Salem does not have any regulations regarding STRs. Suprisingly, someone’s from the city responded to my message on their city FB page.

@Luke Carl I understand what you mean. Those are large groups. 

Though, I’ve seen about a dozen detailed PNL’s that look like they’re doing a good job of staying rented. Plus, you’re basically getting 4-8 cabins worth of income on one deal.

The smaller cabins appear to be working for you very well. So those sound like great deals as well. 

@Paul Sandhu Thanks for the reply! I noticed you’re in Kansas, do you also have rentals in Winston-Salem? 

Also, I love your 3M’s even though I don’t think I understand it. :)

@Luke Carl I was asking for a friend. He recently expanded his business into WS. He’s buying a house for employees to stay when in town, and he wants to rent it on Airbnb when not in use. 

Regarding Gatlinburg, it’s definitely a market I have my eyes on. I’ve been aiming for the larger 8+ bedrooms because their margins appear to be better. However, I’m curious to hear why you like the smaller ones... maybe in another’s thread or DM like you suggested. 

Just to add my personal experience... while I agree your projected VR income won't matter on the front end, it may help a ton on the back end with the right bank who will look at your Debt-service coverage ratio ( NOI / debt service ) . Meaning, you can build up some "instant equity" within 6-12 months if your NOI is high enough.

I have a local community bank who is willing to loan me money as long as I keep a 1.25x debt-service coverage ratio. The higher the better. 

Happy New Years!

I'm trying to find documentation on the city website now, but I also wanted to reach out and see if anyone knows what the regulations regarding STRs are in Winston-Salem, NC.

While we're on the discussion...

What are the best locations?
What size/type of rental works best?

Any other advice is appreciated! 

Thank you. 

My best,
Michael