All Forum Posts by: Steve Bell

Hi BP community,

My partner and i are hoping to purchase a short term rental very soon for the first time. 

My lender asked me how much we plan to put down for the purchase and as we understand it a vacation rental property can be purchased for as low as 10% down. My lender recently told me if the property is a second home we can put 10% down, but if we are purchasing a vacation rental we have to put down 15%, what we would like to know is why? We disclosed to our lender we plan to use house as an STR, but our lender insists on 15%.

Can anyone verify this? Is a must to put down 15%? Is this a requirement from every lender or could lenders say we will give you the loan, but this particular lenders requires 15% down? Any insight would be greatly appreciated! Thanks!

Hi BP community!

My partner and I are planning to take out a HELOC to fund the down payment on our first rental unit. We are looking for some tax advice. If my partner were to give me enough $ for the down payment, but I take out the conventional loan with my lender will he or I have to pay any tax penalties for a financial gift? Does the IRS see that as a gift subject to tax? Would I also get that money taxed because it may be considered income? Thanks for any advice you all may have?

Hi BP community!

My partner and I are planning to take out a HELOC to fund the down payment on our first rental unit. Going the short term rental route. Anyone have advice about repaying the HELOC? What advantages would there be in paying back loan slowly and increasing cash reserves? Or would folks recommend we pay back HELOC ASAP so we can redeploy the money to acquire 2nd property? Long term goal is to acquire enough properties to retire early. Thanks for your thoughts!

Appreciate your time, knowledge, and insight! Thanks!

Dan thanks for your post. Actually the lender did not have that information ahead of time. But I am curious about what you mentioned there are regulations on how often it can be rented out. Does that rule come from your lender or is that a rule from the city we are buying in? I have never heard that so I am just wondering. Thanks for the advice.

Looking at a STR to make first real estate deal on. Can anyone tell me why a lender might discourage 10% down on a vacation rental? I understand it's possible that interest rates would be higher than putting down 20%, but would there be any disadvantages of putting only 10% down on a vacation rental other than interest rate? Especially if I am trying to minimize out of pocket funds to begin investing. Thanks for any advice.

Would even like to hear ways other RE investors find tax professionals. Thanks again for any help!

Real estate newbie currently looking for opportunities to buy, but would love  BP community to connect us with a tax professional with real estate investing background. Thanks in advance for anyone with a contact!

Great suggestions. We are looking in the Manistee MI area. I have searched local profiles of agents in the area, and it appears there are agents who are also investors. Guess I was a little surprised that no one from the area was connected to Biggerpockets.

Any recommendations when Biggerpockets has no recommendations for Real Estate investor friendly agents listed in the area you are trying to invest?