All Forum Posts by: Tyler Bains

From everything I have ever read or been told you should have separate policies to ensure you have the highest level of protection. I would highly recommend that you contact a local agent who can review you needs more thoroughly and shed a better light on your specific situation.

I think location has everything to do with the to Airbnb or not to Airbnb debate. Is there a marketable way to ensure the property stays rented? As in a beach front condo, a cabin in a charming mountain town, a loft right next to a major sporting arena... I wouldn’t want to dumb a ton of money into furnishings without being able to create a marketable property that people remember and refer friends to.

I stayed in an Airbnb down in Galveston, Texas once and I remember it very well because it was right by the Cruise ship port and was decorated in a cruise line theme. This is a marketable idea to me where as a non-themed Airbnb wouldn’t stand out and I wouldn’t personal view it as a solid investment.

Short version... if you go for it don’t do it half ***. Create a marketable theme and run with that theme.
 

@Ciaran Hyman-Martin yes sir! It really depends on the area but most places in Texas are cool with it. Locally it depends on the size of the property. Most around here will allow 3-4 non-related individuals if it is a SFR. If it is MF like a duplex or quad then that # goes up based upon bedrooms. The other thing to look into is efficiency access. We have a ton of SFR by the campuses that pull a permit, build an efficiency, and rent that. That will increase your cash flow significantly.

Short answer is no. There are techniques to go close but “no money down” isn’t exactly true from the start. On an investment you have to typically put 20-30% down and then you will have closing costs.

You could "house hack" where you buy a duplex with an FHA or conventional loan then rent out the other side.

Sandlot voice (FORREVVEERRR) but seriously those things are like the energizer bunny, they go and go and go.

This was a very well written post. I love MF and it is quite a different beast from SFR. I think this post will help give a ton of new investors a good foundation for the dive into MF investing.

@Marlen Weber Thank you! I appreciate that. @Cliff Ridge maybe... ha I know that isn’t the greatest answer but it all depends on terms. Hard lending can be done a ton of different ways depending on who is doing the lending, the length of the loan, and payback options. 

I would highly encourage a look into the BiggerPockets education tab and podcasts to get a great understanding before you dive in. I would hate for you to dive in head first and end up loosing a bunch of money.

What is your end goal? Are you wanting to wholesale? Flip? BRRRR?

I would highly recommend just selling it. You are going to get into HOA and cash flow issues quickly. You have to also account for the fact that a renter will not treat it as you will and if your end goal is to sell it you will be better off pursuing that from the start.

Where are you located?

Reach out to me via text or email. I have a few bankers up here in Lubbock that may be able to help you out. They are very investor friendly and depending on your situation would likely be willing to help.

A HELOC on a rental is technically a no go in Texas BUT there are a few work around or other creative lending solutions they may be able to use.

@Cliff Ridge I would be cautious about anything you find on Zillow. It has a mix of accurate vs inaccurate data. The best thing to do would be reach out to a local agent or skip trace the owner's # and reach out. Is the house listed as a FSBO currently? If not I would reach directly out to the owner and just discuss options.

The worst they can do is say no and hang up. I would encourage you to pick up the phone and give them a shout. Lay out your plan and how it could align with their goal. Explain that a foreclosure stays on your credit for many years and that it will prevent them from possibly getting another mortgage a few years down the line. 

Position yourself as their way out...because you are.