All Forum Posts by: Pete Torrez

@Ken Latchers, we will not be doing STR on this project initially. However once rent stabilized and refinanced I may take a unit or two and do STR when a unit become vacant. I recently purchased a tri-plex, with 100% hard money, did about $20K in improvements and turned one of the units into STR. It is 110 degrees here in Tucson now and we are already killing it with the STR, we will do an extra 80-100% income on that unit in the next year over LTR. Back two units are long term, so I like the model as long as STR is viable. The key for me is to use LTR income as my evaluation for the the project and if I can beat that with STR, why not.

I don't see how hard money lending is any more risky that conventional financing, yes the rates are higher but the result is the same if you default.  I have personally "flipped" over 200 homes in my market with almost all hard money or investor/partner money.  Although I don't do the smaller flips anymore, I have just completed two tear downs financed the same way and sold the first one for $1.45M in two days and the second goes on the market next week.

I am a fan of hard money lending, but the same principles apply and it is not wise to be over leveraged at anytime.

@Jonathan Bombaci this is a 7 unit project, projected rent is $1500/unit+ with a conservative NOI of $88k. At a 6 cap that give me a value of just under $1.5M with a refinance loan of $900k(ish) so the LTV is very good. I can get 6-10% HMLs, I'm using 8% for this project since were coming in with a bunch of equity. I see that both Freddie and Fannie mention the multi family loans on their site but I remember specifically someone on a BP podcast saying this was the way to go for 5+ units, but I can find my notes.

Good afternoon. I am in the process of finishing construction plans on a really cool industrial design loft multiplex. Very edgy. and low maintenance design. I have worked out the initial financing for land acquisition and construction with two investors who will put up approx $250k (total) and I will get a $500k private/hard money for the the balance.  What I am looking for is the best re-financing option once completed and rent stabilized.  Of course I will visit some of my local banks, but I remember listing to some podcasts where there was some type of Fanny or Freddie loans specific for 5+ units.  Anyone have any info on that?  Your responses are greatly appreciated.   I am hoping to get this process nailed down as I would like to start building 10 - 20 units per year for the next 5 years.  Thanks again.  Pete

Wow, thanks for all the info. We are located in Tucson AZ. We originally listed the property with VRBO, who has told me they collect what I tell them to collect and they send it to me with my rent payment and cleaning fee.  I am responsible for paying the cleaning company and the taxes.  I had my assistant copy the VRBO listing and place it in AirBnB (yesterday).  From what she has been able to find so far would indicate that AirBnB will handle all of the tax payments.  I will read the link provided above to confirm. 

Let me know if any of you are planning on a trip to sunny Tucson, special discounts for my BP buddies.  Take care!! 

Good morning, we just got our first short-term rental up and going, in fact, we have our first guest arriving in two hours.  my issue is with the lodging tax. I know VRBO collects what I tell them to and send it to me and then I am responsible for payment, not sure about AirBnB yet, but I'll figure that out.  What I am looking for is a service that will take care of the for me.  Can anyone recommend a tax-payment service?

Hi, anyone have a recommendation for a good floor plan app for IPad?  Thanks a ton!

Pete

Brian, thank you for taking the time to respond to my post.  Your response was very helpful and has also opened the door to some additional questions that I will tackle as time permits.  Again thank you and the rest of the BPs community.

Hi all, although not new to investing (over 200+ properties since 2000) I am new to self directed retirement plan investing. It is my understanding when investing in rental properties, both long term and vacation rentals, the properties should not be managed by me personally as that would make it an active investment and subject to income tax versus a passive investment managed via a management company. If i am correct on that, how distant does the management company need to be? Could I utilize a management company owned by a family member? Could I open a management company under a new LLC, charge market rates and pay income taxes on any income produced by that company?

I love the BP family and resources, only wish it was around when I first started.

Thank you all.

Pete