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All Forum Posts by: Priyanka Verma

Priyanka Verma has started 2 posts and replied 29 times.

Hey Chelsea, you’ve clearly made a smart move with that condo good buy-in price, solid improvements, and a great fixed mortgage rate. You're in a strong position.

Here’s how I’d look at it based on what you shared:

You’re cash flowing around $650/month before expenses with a 2.7% mortgage, that’s not something you’ll easily replace in today’s market. Plus, the location sounds like it’s only getting better, which usually means more appreciation and stronger tenant demand long-term.

That said, I get the temptation to sell and redeploy the equity. But the key question is: can you find two new properties that will give you better risk-adjusted returns than the one you already have? And are you okay giving up the stability of a property you know for the uncertainty of new ones in possibly weaker rental markets?

Inventory being tight and the pressure of timing a 1031 exchange can backfire. You don’t want to rush into a mediocre deal just to save on taxes. Sometimes it’s better to wait, even if it means paying some capital gains later especially since you still have time before 2026.

Personally, unless I had very specific properties already in mind that outperform the current one, I’d hold for now. You’re in a good spot. And remember: selling just to avoid a future tax bill usually isn’t the best reason the deal has to make sense on its own.

One of my friends lives in Alabama and has been involved in real estate deals there. He confirmed that mortgages are the standard security instrument used in the state, not Deeds of Trust. Even though some sources say Alabama allows both, title companies and local practices heavily favor mortgages.

He also mentioned that title companies are usually hesitant to insure a DOT because enforcement through the courts can get complicated. If the note goes bad, you might face collectability or foreclosure issues since the legal system is more aligned with mortgages.

So based on his experience, you’re better off securing the note with a recorded mortgage if possible. That way, you’ll have stronger legal footing and fewer issues with getting lender title insurance.

Post: STR Commercial Lease Takeover?

Priyanka VermaPosted
  • Investor
  • Texas
  • Posts 31
  • Votes 21

Hey Kyle,

This is definitely a unique setup but not unheard of in the STR (Short-Term Rental) space, especially as more investors are trying to find creative entry points without traditional ownership.

Here's my take as someone who’s been around both residential STRs and light commercial assets:

The structure you're describing is essentially a lease arbitrage backed by VC (venture capital) funding but mitigated by bringing in an investor to absorb the lease obligation and front the capital. In exchange, you're being offered the net cash flow and strong upside—assuming the operator executes well.

What I Like:

3x return on capital over 5 years and ~30% IRR is excellent on paper.

You’re avoiding asset depreciation risk—since you’re leasing, not owning.

You’re leveraging a high-demand location with upcoming events (think Super Bowl or F1-type spikes).

I've seen a few deals like this in Austin and Miami, especially during peak STR booms where institutional players or operators didn't want to own but needed the lease secured to scale operations.

What I'd Be Cautious About:

Operator risk is very real. Their execution = your return. If they mess up occupancy, pricing, or guest experience, you’re still liable for that lease.

Tourism swings matter. AirDNA and STR Insights data show that macro demand can fall off quickly in economic downturns. One bad summer can wipe out a year's margins.

You’re on the hook. If for any reason they pull out or underdeliver, you still owe the lease—no matter what. That’s a massive liability if the pro forma doesn’t hold.

Suggestions:

- Ask the operator to put up a performance bond or escrow reserve to help hedge your risk.

- Use a short-term rental profitability calculator (or AirDNA) to validate occupancy and nightly rate assumptions—don’t just rely on their pitch.

- Check what Philadelphia's STR regulations are like. GetChalet has a decent regulatory overview tool by zip code—super useful.

Would Invest or Not?

Maybe… but only with legal guardrails and a clear operator track record. I’d ask:

Have they managed similar size portfolios before?

Can they survive a 20–30% drop in bookings and still cover rent?

What's your exit plan if STR laws change or the city cracks down?

Just my two cents but you’re smart to do your homework. This could be a great cashflow play if you’re confident in the operator and market. Keep us posted if you go through with it!

Cheers,

Post: What does a property manager do?

Priyanka VermaPosted
  • Investor
  • Texas
  • Posts 31
  • Votes 21

Hey Elenis, love this question!

As an investor, I expect a property manager to take care of everything that would normally stress me out—like dealing with tenant complaints, handling repairs, finding good tenants, and making sure rent comes in on time. I want someone who’s reliable, communicates clearly, and treats my property like a real investment, not just a house with rent.

Also, I count on them to keep things running smoothly without calling me for every small decision, but still keeping me informed about anything important. A good property manager saves me time, protects my property, and helps me grow my rental income without the headache.

Regards,
Priyanka

Here’s the thing traditionally, the 3x gross income to rent ratio has been a solid benchmark because it gives tenants enough room to comfortably cover rent, utilities, and other living expenses without stretching themselves too thin. That said, in many parts of California today, wages haven’t kept up with rent increases, so some property managers are starting to relax the standard, hence why you’re seeing companies go with 2.5x or even 2.8x requirements.

But your instincts are valid: if someone is spending close to 50% of their gross income on rent and utilities, there’s a much higher chance they’ll struggle if anything unexpected happens — medical bills, car trouble, job loss, etc.

I personally still stick to the 3x rule, especially for single-family homes where tenants are responsible for all utilities and upkeep. However, in tighter rental markets (or if your property sits vacant too long), I might consider 2.5x gross income  but only with excellent credit and solid rental history. In some cases, I’ve even asked for a co-signer or a higher security deposit (where allowed) when approving someone just below the income threshold.

Also worth noting: credit score matters just as much as income. Someone making 3x the rent but living paycheck to paycheck with maxed-out credit cards and late payments could be riskier than someone at 2.4x income with a clean credit report and zero debt.

I think lowering the rent slightly to widen the applicant pool was a smart move. You might also try offering move-in incentives like one month free (and bake that cost into a 12-month lease), which can attract stronger applicants without permanently reducing your rent.

Bottom line: Stick to your standards or adjust them only when the whole application looks strong (good credit, great references, no debt). Income is just one piece of the puzzle.

Hope this helps, and wishing you luck in filling your rental with a solid tenant!

Hi Nathaniel,

Thanks for sharing your situation you're definitely not alone in facing this kind of decision, and it’s great that you’re thinking it through carefully. Here simple breakdown to consider when deciding whether to sell Rental Two

It’s cash flowing: You're making around $400/month after expenses, which is always a good sign.

You already own it: No transaction fees, no closing costs, and no need to go property hunting again.

High interest rate (8%): This is likely eating into your long-term profits. Over time, a high interest rate can reduce your total return even if you're cash flow positive now.

Equity isn’t growing fast: Compared to your other rental, this one has less potential in terms of appreciation.

If you plan to use the profits to pay off student loans or reinvest in a better property, that could increase your long-term financial health. Also, managing multiple properties, especially with debt, can add pressure. Sometimes simplifying your portfolio helps you sleep better at night. In any portfolio, sometimes it’s smart to let go of the least efficient asset and focus on strengthening the rest. At the end of the day, the decision comes down to your personal comfort with risk and your long-term goals. If Rental Two feels like it's holding you back or not performing as well as it could, it might be time to sell. But if it’s easy to manage and you’re in this for the long haul, holding can also be a reasonable choice.

Hope this helps give you some clarity as you weigh the options.

Wishing you and your wife the best in your journey!

Warm regards,

Priyanka

Hi Ghassan,

Thank you for taking the time to share such valuable advice! I hadn't fully considered the impact of HOA rules in addition to local and state regulations such a helpful reminder when analyzing short-term rental opportunities.

I'll also look deeper into LLC and Trust structures for asset protection and tax strategies, as you suggested. It's great to get practical direction like this from experienced voices in the community. I really appreciate your support!

Wishing you a productive week ahead!

Warm regards,
Priyanka

Hi Bonnie,

Thank you so much for your thoughtful and informative response! 🙏 I truly appreciate you breaking down the nuances of short-term rental depreciation and the distinction between active vs. passive investment. This is incredibly helpful as I navigate the tax implications more closely.

I'll definitely look into cost segregation and connect with a CPA/EA who understands the benefits in this space. Your advice about maximizing tax benefits and improving cash flow during the early ownership years is exactly the kind of insight I was hoping to gain from this community.

I may follow up with more questions as I dig deeper...thanks again for offering your support!

Warm regards,
Priyanka

Hi everyone! I'm Priyanka, and currently working in real estate analytics. I recently joined BiggerPockets to learn more from experienced investors, stay up to date on what’s happening in different markets, and share ideas around short-term rental strategy and property research.

I’ve been diving into short-term rentals and really enjoy exploring how data and location insights can help make better investment decisions. I’m especially interested in:

  • How investors evaluate STR markets

  • Tools people use to forecast occupancy and ROI

  • Portfolio management strategies as markets shift

I’m not here to pitch or sell anything—just excited to join the conversation, contribute where I can, and connect with others in the community. Looking forward to learning from all of you!

Cheers,
Priyanka

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