All Forum Posts by: Ryan Genson

(Assuming your buying good deals) Typically, a bigger deal is going to give you a better return and help you achieve your goals quicker. With 300k cash and doing a traditional 20% down commercial loan, you could go after million dollar + deal. You could also try and buy multiple vacation homes. Personally, I'd be going for a bigger deal, however, if you have experience with SFH's vacation rentals will have solid ROI's in the right areas. Multiple SFH may work just as well as a single large deal. If you're going to go after a big deal I'd do some research and educate yourself on how it would be different than managing multiple smaller deals.

@Ryan Genson - Congrats on being in the situation that you're in! It says a lot about your personal character if someone is ready to trust you with that amount of capital with no experience. :)

As an investor and agent in the Destin market, you can definitely find cash flowing properties in our region.  You'll just have to determine which path you'd like to choose.  You can buy 3-4 cash flowing condos or 1-2 cash flowing homes.  I'm helping another client right now that is doing a 1031-exchange with $10M in proceeds from a sale, and she's looking a similar dilemma -- how do you allocate your cash. 

My recommendation: Find yourself a solid agent that understands investing and then start taking action.  Best of luck!

@Ryan Genson I actually did miss where you initially said you're looking to do STR's. However, there are a few more rules even when trying to use that strategy. You're correct in that you are still required to occupy the property part time, and you do need to be prepared to show proof of this. However, the specific day requirement is at least 14 days, or 10% of the number of days that the property is rented, whichever is greater. Because of this, if you wanted to operate at a full 90% capacity, you would have to live in the property at least 37 days a year, again with proof of that to provide if necessary.

Another thing to note is that you are not able to have a property manager manage the STR for you, it all has to be done by you, which can be a pretty big task.

@Ryan Genson It may have been a mistake, but secondary home loans highly limit the amount of time the property can be used as a rental, and it would be mortgage fraud to operate as a full time rental. If using a conventional loan, you would likely be looking at investment loans, which offer 25% down for multifamily, and 15% down for single family. Otherwise, your options are DSCR loans, private and hard money, or any other non-conventional loan programs that may have lower down payment options.

Happy to help with your search in Southwest Florida!