All Forum Posts by: Shayne Meeker

After our mortgage payments it would only be maybe a 4 CAP. My question is, how can I come in with a reasonable offer? They would need to come down $400k in order for us to go up to an 8 CAP.

0 Votes

Looking for the best SBA options on a deal we would like to purchase. It’s a fully established bed and breakfast.

Asking price 1.6m

2021 gross revenue around 545k. net 175k.

Occupancy average 95+%

Part time staff already in place. The business is 25 years old and rated #1 in the area. My wife and I would be running the business. We have 200k and zero debt. Both 720+ credit scores. What would our best option be?

0 Votes

Looking for the best SBA options on a deal we would like to purchase. It’s a fully established bed and breakfast.

Asking price 1.6m

2021 gross revenue around 545k. net 175k.

0 Votes

Originally posted by @Kyle H.:

@Shayne Meeker

Most are charging around 25% +/-. Feel free to PM if you have any questions.

Sent you a connect request

0 Votes

@Kyle H.:

Do you know how much the property managers typically charge percentage wise? I’m looking at land in Bryson city and would love to ask you some questions if you don’t mind

0 Votes

Originally posted by @Mike D'Arrigo:

@Shayne Meeker do plenty of research on the laws and attitudes of the local government towards STR. Quite a few cities are putting restrictions on using your property as a STR. Don't look only at the current laws and restrictions but also find out if there are any proposals or hearings pending in the city council or county supervisors.

Great advice! Thank you

0 Votes

Originally posted by @Chris Levarek:

@Shayne Meeker Welcome! As you are leaving the military, getting a new loan on a STR could be difficult. With that dependable income gone, a lender for an investment property will not have the same perspective. Qualifying on loans without the W-2 history can be a pain. Almost better to qualify now on a purchase, then exit the military. IF you do use the VA loan and demonstrate intent to move in, that might work but in most cases, lender is going to classify as a investment property and want income to verify.

Florida is a great place for STR and I've heard good things about the Smokey mountains. Remember STR income rarely counts towards boosting your income balance sheet with lenders. So again that income comes into play on the next one round. You can find lenders who use STR income to justify a purchase, but these are not the majority. So question is, do you want to have more management and ROI with higher risk on a STR OR do you want less management, medium/high ROI with lower risk on a LTR? Both have their advantages.

Thank you so much for the reply. Once out of the military I’ll have a W-2 job making almost double of what I make now, so I shouldn’t have issues with lenders. I have always been a high risk/high reward person. Knowing the hard work it takes to get the results you desire. I don't feel a LTR would be a medium/high ROI especially when comparing to STR. I feel as they would be more of a low/medium ROI. Although I am young and don't have experience in any of these fields so who knows! Maybe our first multi family will surprise me. Again thank you for the insight!

0 Votes

Originally posted by @Ben Scarborough:

In the short-term, I would 100% use the money to invest in a thriving STR market in the Southeast (Smokies, Gulf Coast, Blue Ridge). With current inflation rates, you are theoretically losing money the more liquid you are.

In the long-term, I highly recommend utilizing your VA loan to snag a 2-4 unit MFH in a metro market.

In this long-term scenario for you, I would recommend finding an LTR/STR in a Metro market for a few reasons:

1. If I was planning to utilize a VA loan, I would not want to live in a big tourist or vacation destination for my primary residence

2. You give yourself the option of having LTR demand if STR gets outlawed (this may get some backlash, but this is with the assumption that I don't want to live in a tourist destination for my primary residence, otherwise I am always buying an STR in a market that thrives on STRs

3. Reliable long-term appreciation

Good Metro Options to look into if moving from Jax and want to stay in Southeast: Atlanta, Nashville, New Orleans, Orlando

Important item to note: I know Atlanta just created a few restrictions for STR, but still worth looking into

Best,
Ben Scarborough

Fantastic advise thank you!

0 Votes

Originally posted by @Jeff Shumway:

Would you consider keeping your current home as a STR when you get out and use your VA loan to buy your next property 0 down? I know it's not the Smokey Mountains but it's at least a start.

Unfortunately our HOA does not allow STR and also the market just isn't there for a 4 bedroom home. (In our area)

0 Votes

Hello everyone! First time posting here so go easy on me. I’m seeking advise from others on what they feel would be best moving forward. He’s my story.

My wife and I are both currently 25 with 120k saved and no debt. We are selling our current home in Jacksonville Fl because we want to capitalize on the booming market. We are set to leave Jax in May of 2023 (getting out of military). So the plan is to rent while trying to find our first STR somewhere in the Smokey mountains. I have considered keeping and renting out our home but the ROI just isn't as aggressive as the possibility's with STRs. We want to sell our home so we have the cash (about 60k) to invest into an income generating property.

What would your recommendations be? Wait and see if the market slows or drops a smidge? Consider other locations for a STR? Shift focus to multi family homes? (Very slow ROI compared to STR imo) I am brand new to real estate but always been an entrepreneur and found ways to make side incomes. Open to hearing any and all ideas!

4 Votes

All Forum Posts by: Shayne Meeker

Shayne Meeker has started 4 posts and replied 10 times.

Post: 3rd party valuation on a B&B

Post: SBA loan for B&B business

Post: Looking for SBA funding

Post: STR Property managers in Bryson City NC

Post: STR Property managers in Bryson City NC

Post: Active duty navy wondering the best route to get into STR

Post: Active duty navy wondering the best route to get into STR

Post: Active duty navy wondering the best route to get into STR

Post: Active duty navy wondering the best route to get into STR

Post: Active duty navy wondering the best route to get into STR