All Forum Posts by: Aaron Smith

I actually have done about 5 more loans since I wrote this, and they were 4 more conventional loans and then a portfolio cash out refi on 4 properties together.  I had to get appraisals on all of them.  I never found a workaround, but it wasn't a big deal.

 I don't think you have much experience with older southern folks do you?   Trust me, alot don't even use computers or ipads, or the internet for that matter.  Just cable tv and sports.   And that is a HUGE chunk of the weekly renters at the beach.  They want a lot of live tv, and all the channels.

Also, it is cheaper to have the phone included than to just get internet + cable.  Would cost me more to get each a la carte from Spectrum.  Trust me, I have wanted to get away from it, but it would end up making me lose out in the end.

  I own a place at the beach, and I would love to get away from the $125/month I have to spend for internet, cable, and phone, but you must have it, as all places have it.  You don't offer cable and you shoot yourself in the foot.  I don't have cable on my personal property at home (we use Firestick, Netflix, etc), but you can't expect that to be used at a vacation rental.  Too technical and not easy enough for the average renter.

Maybe it is just me, but I bought an oceanfront vacation property last year and did so knowing it wasn't going to cashflow at all, and would actually cost me a good chunk of $ each month.  It has about $40,000/year of mortgage/insurance/utilities/taxes/upkeep, but I gross about $25,000/year in rent, so it ends up costing me about $1,200/month.  I just wanted to be able to offset about 6 months of all expenses via the short term rentals in the summer, and it is able to do that.  I am only offering it for rent from April-October and I leave it off the market the rest of the time, as we bought it as our personal getaway to use as well (we live about 3 hours away), so cashflow was never a big deal.  Don't you have to factor in your personal use and enjoyment of a vacation property and thus, not worry if you are spending or losing $ on it?  In my opinion yes, but of course everyone thinks differently.  It had great terms on it, which I was able to get owner financing with me putting 20% down and the owner carrying a 20-year fixed note at 4.75%.  Also, I don't have to carry flood insurance, which was the main thing I needed to make sure I didn't have to get, as that is about $12,000/year.  

Honestly, don't bother making an offer $420,000 less than the asking price.  You will truly just be wasting your time.

I have Erie for everything (all of my auto, life, my primary residence, and all of the rentals in my name).  Their rates cannot be beat.  However, they don't do umbrellas, thus my issue.

I'm in the minority here, but I would tell you to do nothing.  As long as they are paying you in full, with late fees included, around 2-3 weeks late, and even if they did this every month, I would be fine with it.

I own right at 25 properties, and about 6-7 of them are usually between 5 days to 25 days late each month.  I don't mind, as I am not chomping at the bit to get the rent at the first of the month and I actually like getting that extra 5% in late fees.  It is some nice extra cash flow.

THus, if they pay each month a few weeks late, what is the difference than paying on the 1st each month?  Nothing, except you are making more $ by accepting payment a few weeks later.

That said, once a tenant goes more than 30 days or 1 full month late, my entire situation and experience will change with them.  But, I have only had that happen maybe 1 or 2 times in the last 5-6 years.

Hi Patty, thanks!  Unfortunately it looks like your company only provides coverage in Virginia, Maryland, and Pennsylvania.

Scott, thank you so much for that information!