All Forum Posts by: Robin Simon

Hi Mike, if you are going to do rehabs I suggest dividing your cash into several down payments and then stage up sequential rehabs. That way the 6 month seasoning requirement, will only slow down your first project. You will incur bridge loan costs, but they will be offset by being able to work to scale. It will also allow you to buy construction materials in bulk giving you some negotiating power with suppliers. Rehab lenders will lend you 85 percent of the purchase price and 100 percent of the construction costs not to exceed 70-75 percent of ARV. If you are buying Tax sales or sheriff sales you should be aware that tax sales create issues with title insurance for up to one year after the sale to allow the redemption periods to expire. Sheriff sales likewise will require 6-12 months seasoning before using a higher value. Good luck

The seasoning period applies to private banks, Hard money lenders and government insured. So their is little or no way around it. When you take on bigger projects it will be less burdensome because the rehab. phase will be 3-6 months anyhow 

For a long(er) term rental like yours, yes. For those of us who turn them over weekly or bi-weekly, they should be fully stocked for each guest when they arrive.....

Yours is not really a Short Term Rental as we think of them, more a Medium Term Rental....

@Steven Cook

1. Flyer drop the day before you door knock so people can see your face/message.

2. Combine door knocking/flyering with geo-targeted social media ads.

3. Consistency. Door knock one given area on a set schedule every week for 6 months before you evaluate it's success. 

Hi there - I'm looking to buy a SFR such as a 3 BR / 2 BA and right after convert it to a smaller SFR and ADU. I would then like to convert the garage into a second ADU and rent out both ADUs. I make $20k gross monthly; have perfect credit; zero debt; $120k+ liquid and yet have only been offered 15% down for up to $1M via bank statement loan because I am self employed and deduct a lot of items for tax reasons. I'd like to only put down 10% though so I can use the funds I have to construct / convert the first ADU to start immediately renting it out and having the renter pay at least $2000 toward the mortgage (realistic estimate based on market rent for the area I'm looking in). Note that I am currently looking at 3 BR / 2 BA places closer to $700k-$900k. I'm considering FHA, conventional, bank statement, really anything as I just want to see what my options are. Thx

We recently put a BRRRR under contract using a mixture of HELOC funds and hard money. Hard money rate was right around 9% with 1.75 points.