All Forum Posts by: Sebastian E.

Thanks Chris Mason it is a unit in 4 unit building. The other 3 are long term leases and the 4th is a furnished STR that I have been seasoning since March.

Has anyone had any success using Airbnb income for a loan application? I have heard rumors that some smaller banks may consider it on a case by case basis. Any guidance on this would be appreciated.

Sebastian

I am under contract on SFH in DC and would like to put the property in an LLC. My sales contract has an assignment clause so I can assign it at closing. Does my LLC need to be fully formed in order to close or can will it suffice to have applied for it? Any help on this would be appreciated!

Sebastian

Definitely seems possible but if the landlord is smart he will allow you to prove concept, thank you for your services when your lease is up, and then set up his Airbnb. You don't want to be in a position where you can easily get cut out when you have time and money in the deal.

I take it there is no way to get around the requirement that you don't own residential rental property for that program?

Hi @Andy O'Neal! Welcome and thank you for your post. I am in a similar position and was also in Baltimore last week looking at some things in Pigtown. My agent is a REI agent and has been awesome so far. I can highly recommend her and would love to put you two in contact. I will send you a DM so we can find a time to chat.

Sebastian 

Hello Habib,

I am looking at a similar situation and also trying to figure it out. If you get anywhere can you please post to the forum? I will do the same.

Thanks

Sebastian 

Hello Baltimore BP folks,

It was a pleasure meeting some of you at @Account Closed lunch on Friday. I learned a bunch in that hour and a half. For those who are thinking about investing it is a great way to meet folks from the entire value chain of real estate from wholesalers, to plumbers, to hard money lenders, to other investors.

I have decided to take the plunge and purchase a property in Baltimore. I am looking for either a large SFH (3500 sq ft plus) or up to a 4 unit that I can purchase using low money down financing with a Fannie Mae 5% down loan product. From a financing perspective the easiest would be a SFH that is currently quasi converted that I can finance as a SFH primary residence. If I do a multi I will have to increase my down payment to 15% which I would do for the right cash flow deal.

Two questions for the group:

-Do you know how difficult it is to convert a SFH to say a 4 or 5 unit multi? It seems like plenty of people have done this although the zoning seems quite tenuous to do a conversion. Does anyone have any experience on this front? Is the city actively trying to restrict more usage for multis because of the oversupply of housing?

-If anyone knows of any off market deals for larger SFH in Reservoir Hill, Madison Park, Station North, Old Goucher please keep me in mind. Same goes for positive cash flow multi units up to 4.

I am looking forward to continued networking with you all in the coming months.

Thank you,

Sebastian 

Hey Elliot Jones besides all of the things around making sure you find a place in an area that has some possibility for price appreciation, I would caution to be very conservative on your projected incomes and expenses. Pencil it out assuming 10% capex and 10% vacancy plus all of your normal expenses including taxes, insurance, general maintenance, utilities, water/sewer etc... On a tri if the income for the 2 covers all your expenses including mortgage and taxes and you can live in the 3rd then I would consider that to be a good deal. These deals exist in baltimore but you might have trouble finding something turnkey in a place you want to live so maybe check for something with some deferred maintenance that you can force some appreciation on. Good luck! Seb

I generally like the strategy as I employ it myself on one of my properties in the U.S. I just know that Airbnb is under attack in Berlin, so I think it is too risky. It is certainly worth a shot and if it doesn't work you can always just get a roommate.