All Forum Posts by: Todd Mason

@Austin Monroe thank you Austin I think so too!

@Carter Fleck thank you Carter I agree the extended stays are a great play and happy to hear yours are doing well! I’ll check out your link!

@Josh Shaughnessy totally agree with appreciation is icing! Delicious icing! Yes definitely some risk factors to access but the corporate stays are enticing for sure

@Gary Nash thank you Gary I agree especially with the inflation game

@Bruce Woodruff @Collin H. @John Underwood

Thank you guys I appreciate your input! And always enjoy your advice!

I'm looking at a property in a city that is currently no longer issuing new STR permits and come Jan 1 2023 will shut down all operating STR's EXCEPT those operating in an HOA that allows them ( I've confirmed with the city ). They will continue to allow those and issue new permits and renew existing. I have spoke to the HOA and they allow STR's and don't have plans to cancel them ( although I know that can change )

The property I'm looking at works very well numbers wise and I do vacation in the area so I'd be able to use it also. The market is a great appreciating one and worst case scenario if it did get down as a true STR I could rent it long/short ( 31 day minimum ) and cashflow.

My thought that is when the ban comes and the pot gets thinned my property should theoretically do better revenue wise cause there are less properties to choose from.

Am I right with that line of thinking?  Any and all thoughts would be greatly appreciated thanks!

@Shannon Vistisen both are great depending on how you use them like has been mentioned.

For example if you were going to do a fix and flip a HELOC would be a great option cause you'd use the money fast and when you sold the property you'd be able to pay off the HELOC and rinse and repeat.

If your using the money for a down payment for a STR and wanting to live off / use the cash flow the cash out IMO would be the better option. Because it's a fixed rate amortized over a period of time. Where as like was said before your payment for your HELOC is interest only so the small payment can be deceiving. In that case you would probably want to use all your cash flow proceeds to pay off the HELOC asap.

Hopefully that makes some sense

@Gulliver R. Another good idea that I have done and worked out is call up a couple STR property managers in the area and pick their brain. They should know all the ins and outs and what areas you'll be able to and not. Also from what I've heard is that in indio it mainly depends on the HOA. The city doesn't have the same restrictions as does Palm Springs with the amount you can rent out in one year

@Luke Carl are they cracking down on the rules for the 10% down loan for next year? I have heard they want you to use it X amount of days even now but obviously not really happening. Are they going to be requiring proof of stay or something?

@Luke Carl wow ok sweet thanks for the help! I’ll get to work!