All Forum Posts by: Mitch Davidson

@Richard Evanns I've had quite a few of those lately myself, for a new STR listing on ABB. Perhaps they target newer listings. They've all wanted to stay for a month or so, even though I don't allow that. I just get them talking. Ask them open-ended questions until they say something crazy, like needing me to help them find "reliable transportation" or security for their kids.

Sylva has a plant too, just not nearly as stinky.

@Pat Dansdill. I have a couple friends that invest in LTR's in Fayetteville and feel very good about it. A recent guest on the BP podcast, can't remember who, also mentioned Fayetteville. The appreciation opportunity isn't as great as elsewhere, but you can get a home for under $200K and maybe hit the 1% rule on LTR. And the tenant pool is mainly vets, so a pretty great crowd. 

@Mark Huneycutt. Love the RV story. Great ROI there. I see you cater to mountain bikers. Seems like an RV is perfect for a 2-biker getaway. Perhaps come out to our next local meetup. If you DM me your email address I'll add you to our invite list.

@Alan Taylor. I'm not sure there are any networking groups there, although there are plenty of STR's. Most of the owners seem to not live there, including me, so perhaps the only groups are on FB. I can refer you some people for the service needs. Everyone I've used, for renovation, repair, and cleaning, was found by word of mouth. It's a tough place to find great help. I'll DM you.

Agreed with @Kevin Hoag. Foremost is very popular in the space. Proper is supposedly the best, but they're also more expensive.

@Alan Taylor, to add to what @Christian Longacre and others have said:

1. It's the norm for the attorney to send their wiring instructions to us, the lender, as we need the info as well. Once in a while the attorney expects us to share such with the buyer, but many of us refuse to do that. And it's not uncommon for smaller shops to send wiring instructions, to us and/or the buyer, as a PDF attached to an email, meaning not very secured.

2. As others have said, I too see that while both the buyer and seller can pick their own attorney to close with, they often work with the same firm, and the seller or selling agent often pick the firm. 

3. I have an STR in Bryson City myself, and work loans down in that general region. The closing attorneys are quite small, as the populations are quite small. Thus I prefer to use Southern Law Group in Asheville. If you need to sign remotely, they'll send you the docs by mobile notary, who will meet with you just about anywhere at any time, and who will next-day them to Southern after the signing. Otherwise, they'll let you print the docs and handle the signing and mailing yourself.

Gotcha, @Noah Kellar. Because your credit is high, in the future I'd only use FHA for multi-family, due to the down payment minimum remaining low compared to Conventional (meaning, the down payment min for Conventional shoots up for 2+ units). Conventional will only require 5% down, won't have FHA's 1.75% upfront MI charge (1.75% of the loan balance...most people finance it), and will have a much lower MI cost per month. Even though Conventional rates are a bit higher, your overall monthly cost will be lower because (a) a higher starting principal balance due to the upfront MI, and (b) $100 or so per month of additional MI.

Hey @Noah Kellar. $400K sounds like a really round number. I would show your rehab plans to a couple agents, to get a couple ARV's. I don't think our appreciation train is going to come off the tracks here in Asheville, so I'm sure you'll be at $400K value soon, but how soon is the question.

When you do the cashout, do it before moving out, so that you can call it a primary. Otherwise, your cash limit will fall to 75% and you're have a higher rate (and likely some points). 

Also, agreed that you should try Conventional first. FHA will be more costly overall, unless your credit scores start with a 6 instead of a 7.

Happy to help you think on this more if you want to setup a call. Also would enjoy having you come out to one of our local meetups.