All Forum Posts by: Zach Edelman
Zach Edelman has started 19 posts and replied 1227 times.
Post: Houston fix and rent
- Lender
- Austin, TX
- Posts 1,263
- Votes 1,284
When do you plan to pull your cash out and do a cash-out refinance/do you ever intend to do this?
Post: STR investment areas for 1st time STR investor .
- Lender
- Austin, TX
- Posts 1,263
- Votes 1,284
I'd start off with reading Avery Carl's book "Short-term rental, long-term wealth" if you haven't already. This could give you some inspiration on where to invest, or at least narrow it down!
Post: New STR Restrictions Coming for the Asheville Area
- Lender
- Austin, TX
- Posts 1,263
- Votes 1,284
This is nuts considering how hot Asheville has been for STRs.
Post: Buying Condo In Hotel/Casino Resorts?
- Lender
- Austin, TX
- Posts 1,263
- Votes 1,284
While the HOA might tank your profitability, I do know/am frequently messaged about condotels for STR usage, so it's definitely not that uncommon of a strategy.
Post: Financing STR Same neighborhood as current property
- Lender
- Austin, TX
- Posts 1,263
- Votes 1,284
Quote from @Travis Timmons:
There's no easy answer. You have to find the money somewhere if you want it that badly. If you don't have it, you have to find a lender (bank, mortgage broker, private money, etc.) or convince the seller to do something creative. It's unlikely, but not impossible.
If it were me, I'd find a friend or family member with some cash, convince them that it is a good investment and say that you will manage it for them at market rate of 15-25% depending on your market. It increases your income and protects you from the risk. The other benefit is that if it goes sideways, you are just a vendor, not a partner that they are married to. They can fire you and find a new manager. It's not an earth shattering idea, but it increases your income and protects you from yourself (wanting to scale too quickly, making compromises, and introduces extra risk).
I'd suggest taking a breath and getting a sample size of more than 1 month of bookings before buying the next one, but I get it.
Agreed with this answer. If there's no equity/margin for the seller, then it's not going to be easy to have him/her move much on his/her price.
Post: Looking for a DSCR Lender for rural 10 SFR portfolio
- Lender
- Austin, TX
- Posts 1,263
- Votes 1,284
You definitely should have some options. LTV might be capped but assuming that you are flexible on this, you should have options.
Post: Are Loan rates so bad that a first time STR buyer really should steer clear?
- Lender
- Austin, TX
- Posts 1,263
- Votes 1,284
As everyone above is saying, just makes it harder to find deals and for deals to pencil. What I think is a valuable tool/person to have in your corner now more than ever is an investment specialist or specifically STR specialist realtor that knows how to underwrite and thus knows how to find a good deal. Bonus points if they themselves are an investor.
Seems like a slam dunk deal!
Post: List of Condos in Scottsdale that allow STR
- Lender
- Austin, TX
- Posts 1,263
- Votes 1,284
I have an agent in Scottsdale I know of that is very knowledgeable about STRs. LMK if you want/need a referral!
Post: Loan options on 4-plex in IN
- Lender
- Austin, TX
- Posts 1,263
- Votes 1,284
When did you purchase the asset exactly? DSCR lenders will have different rules on seasoning (i.e the amount of time between when you bought the property vs. when you closed on the refinance) for how much cash you can pull out and whether or not the appraised value, as opposed to the cost basis (purchase price + rehab costs) can be used to determine the loan amount (i.e LTV * appraised value = loan amount).