All Forum Posts by: Robin Simon
Robin Simon has started 636 posts and replied 3875 times.
Post: How to determine the right price
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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A key thing to take a look at with regards to appreciation potential is the transferability of the STR to an owner-occupied home or a long-term rental. A pure play property that only works as a STR or vacation rental will likely have a better ROI but will have less room to appreciate (less buyer pool). Much more likely to see appreciation with a property / market that could easily also serve as someone's home
Post: Small town Airbnb vs. long term rental
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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Quote from @AaronFaith Riddering:
Hello BP friends. We have a 4/2 property we are currently remodeling to be used as a rental in a small town. We are leaning toward long term but also had thought about short term. I checked out the Airbnb site and their calculator says we could make about double net profit after cleaning and other expenses with the property only rented 160 days a year.
While this seems like a no brainer, we live in a small town with no other short term rentals showing up on any sites to compare. We don’t want to go to the expense and trouble to furnish and list on Airbnb if there isn’t much demand in our area. Would y’all trust the Airbnb calculator for pricing and demand or just go long term where we know there is demand?
Thanks for your input!
Depends completely on your personal situation and risk appetite. All the data consistently shows what you noted (you will earn about twice as much as an STR than as a LTR). If you have comfortable reserves and decent tolerance for risk, you should probably try it on AirBNB as an STR at least initially - if it doesn't work out, you can just easily switch it over to Long-Term. Its much harder to do the other way around
Post: Is it foolish to get into STR's with a looming recession?
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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I wouldn't shy away from getting started with STR, but would pick a property thats not in a pure-play vacation/tertiary market so that the property could be easily converted into a long-term rental if the STR doesn't work out
Post: 80% Cashout in 2022?
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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Quote from @Trevor F.:
Hi Everyone,
Are there lenders (non qm/llc) doing 80% cashout refinances on single family nowadays? I know there were some last year but it seems they are tightening their LTVs.
This is pretty much gone right now for DSCR loans (was very rare anyway in 2021 and earlier in the year already). Might still be doable for a non-QM non-DSCR loan so would check with a mortgage broker or lender that does the whole non-QM suite, but its nots going to be a DSCR loan
Post: 5 Terms You're Too Shy to Ask About
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
Quote from @Scott Trench:
Great list - what do you call different types of loan products for investors? I hear a lot of naming conventions (conventional, private money, hard money, bridge, DSCR, balance sheet, "alternative to conventional" and more).
@Scott Trench I think it would be valuable to do an update on your loans page (https://www.biggerpockets.com/...). A full non-QM section would be very valuable, right now its not even having a description/definition of DSCR loans in the bottom section
Post: 5 Terms You're Too Shy to Ask About
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
Great posts River!
Post: Short term rental refinancing
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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Quote from @Justin Beasley:
You absolutely can refinance it. If you want to use the income produced by the property then you will need to have 1 or 2 tax returns(depending on the lender) showing the income. Find a different lender.
??
You do not need to use a lender that requires tax returns to use the income to qualify
Post: Best markets to do 100k in rev
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
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Quote from @Dale Bertrand:
Quote from @Robin Simon:
Quote from @Cody Dastrup:
Hey everyone!
I just secured my 2nd STR and in May entered year 2 of my STR journey. The 2 properties combined should do about 95k in rev next year on about 3.7k in monthly payments ($370k and $260k purchase prices respectively)
I’m wanting to challenge myself a bit on my next purchase and look at something that can do $100k in annual rev.
My question: Are there any markets where properties are sub $800k and doing $100k in annual revenue?
We've done deals recently that fit this criteria in these markets:
| Galveston | Texas |
| Indio | California |
| Kerhonkson | New York |
| Lakeside | Oregon |
| Grayland | Washington |
| Saint Augustine | Florida |
| Lakewood | New Jersey |
@Robin Simon I’m curious where you are investing in the northeast (NY and NJ). I’ve got two STRs in Massachusetts and it’s hard to make the numbers work around here.
To clarify, I've been lending on investments in these areas. We've seen success in some of the smaller New Jersey markets that can hit the more wooded areas, the coasts and also be a reasonable distance to NYC/Philadelphia. The taxes are a huge hurdle there but still great opportunities for really experienced operators that know the area. I'd love to take a look at some of your Massachusetts options and see if we can help @River Sava
Post: STRs in Scottsdale Are Starting To Be Regulated W/ New Law
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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The headlines and post seem a little hysterical vs. when you actually dive into the article
Doesn't appear to limit or license STRs rather its just some (pretty mild) penalties for quality-of-life violations, which should be screened out by responsible hosts anyway
Post: Short term rental refinancing
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
Quote from @Alexei Semenov:
Hi !
I have a question…
Can you refinance Short Term property and get the Cash out?
Bought it as a long term rental then converted to STR….
My lender said it’s impossible and I’m stuck for a long game….
Thank you all!🙏
Not at all - a lot of DSCR lenders will do this refinance no problem, even as a short term rental. How long have you been operating the property as a short term rental?