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Joanna Liriano
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New to Bigger Pockets: First Goal

Joanna Liriano
Pro Member
Posted Feb 18 2023, 09:33

Hey folks, 

My name is Joanna Liriano and I am dead set that I will buy my first property this year. I am reading Real Estate Rookie by Ashley Kerr and I am learning about real estate as if it was a part time job. I've worked on my first goal and just wanted to share it with you guys. I feel that the more people know about your goals, the more pressure there is to make it a reality. #Accountability. I am open to hear feedback, advice, and/or some guidance. So here we go:

I want to profit $15,000 per month by 2033 because I want to feel financially free so I can still make a living without having to work as someone’s employee. I will do this by buying 15 small multifamily properties in North Jersey that yield at least $1000 a month in profit through short-term rentals.

  • Leads: I’m going to search for properties in Hudson County, Bergen County, Passaic County, Morris County, Essex County, and Union County. I will speak to a housing counselor for down-payment assistance programs. I will compare loan officers for the best home mortgages and pre-approval. I will also find an experienced real-estate agent who can help me find good deals.
  • Analyze: I will analyze real estate markets through AirDNA and estimate how successful Airbnb would be in that area by calculating average daily rates, occupancy rate, and revenue. I will compare these results with long-term rent prices to see which option is better.
  • Propose: I will offer no more than market value. One out of three offers tend to close. I need to offer at least one every four months. This means I need to analyze 5 deals a month, or one deal a week.
  • Success: Close on the first contract.

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Shawn McCormick
  • Realtor
  • Orlando, FL
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Shawn McCormick
  • Realtor
  • Orlando, FL
Replied Feb 18 2023, 15:02

@Joanna Liriano Congratulations and welcome to BP. Great job on setting goals and soaking up knowledge. I would advise you to take it one step further than having accountability to us here on this forum. Get a real accountability partner that you call weekly/monthly. 

The calls don't have to be all just about your real estate goals, start smaller and get used to the idea of the call and then increase the level each call, set s.m.a.r.t. goals!

I don't know a thing about NJ and short term rental market there, but happy to hook you up with an agent that can work with you and help focus on the specific property types that will work for you.

Keep us posted and best of luck!

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Chad McMahan
  • Residential Real Estate Broker
  • Sedona, AZ
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Chad McMahan
  • Residential Real Estate Broker
  • Sedona, AZ
Replied Feb 20 2023, 05:28
Quote from @Joanna Liriano:

Hey folks, 

My name is Joanna Liriano and I am dead set that I will buy my first property this year. I am reading Real Estate Rookie by Ashley Kerr and I am learning about real estate as if it was a part time job. I've worked on my first goal and just wanted to share it with you guys. I feel that the more people know about your goals, the more pressure there is to make it a reality. #Accountability. I am open to hear feedback, advice, and/or some guidance. So here we go:

I want to profit $15,000 per month by 2033 because I want to feel financially free so I can still make a living without having to work as someone’s employee. I will do this by buying 15 small multifamily properties in North Jersey that yield at least $1000 a month in profit through short-term rentals.

  • Leads: I’m going to search for properties in Hudson County, Bergen County, Passaic County, Morris County, Essex County, and Union County. I will speak to a housing counselor for down-payment assistance programs. I will compare loan officers for the best home mortgages and pre-approval. I will also find an experienced real-estate agent who can help me find good deals.
  • Analyze: I will analyze real estate markets through AirDNA and estimate how successful Airbnb would be in that area by calculating average daily rates, occupancy rate, and revenue. I will compare these results with long-term rent prices to see which option is better.
  • Propose: I will offer no more than market value. One out of three offers tend to close. I need to offer at least one every four months. This means I need to analyze 5 deals a month, or one deal a week.
  • Success: Close on the first contract.
Joanna,
how exciting! I hope 2023 is extremely fruitful for you.
One word of caution- IF you partner with an exceptional STR specialized real estate agent AND an exceptional STR PM, you should be getting numbers significantly higher than AirDND estimates- as AirDNA uses average data. My clients are usually getting 20%-40% higher revenue numbers than AirDNA estimates. FYI- a great STR real estate agent worth their bacon will already be working regularly with a phenomenal STR PM that they can refer you to.
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Corby Goade
  • Investor
  • Boise, ID
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Corby Goade
  • Investor
  • Boise, ID
Replied Feb 20 2023, 06:29

Nice- I love the details!

One thing I'd caution you on regarding your goals- you can't judge the performace of a property today with a goal based on the cash flow it will provide you in 10 years. You'll need to work in to your numbers the rent and equity growth over time. 

In general, if you buy a good STR today that cash flows maybe $300, it could be reasonable to assume it will cash flow $1000 in ten years, especially if you have an opportunity to refinance around 5% in the next few yeras.

However- financing a property today with a 7.5% interest rate that will immediately provide you with $1000 in cash flow with a 20% down payment or a DSCR loan is highly unlikely.

Temper your expectations for what returns you will see in the first few years so that you have the opportunity in 10 years to hit that goal. You don't want to pass on good opportunities, expecting a grand slam to come to you at some point, which is likely never to happen. Those base hit deals today will be grand slams in 10 years, but you have to give them the opportunity to get there. 

Best of luck!

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Replied Feb 21 2023, 09:15

Congratulations on taking the first steps towards achieving your goal of buying your first property and becoming financially free! It's great to see that you have a solid plan in place and are working towards your goal with focus and determination.

Your plan to search for properties in specific counties in New Jersey and speak to a housing counselor for down-payment assistance programs is a good start. It's also wise to compare loan officers and get pre-approved for a mortgage before making an offer on a property. Finding an experienced real estate agent who can help you find good deals is also a great idea, as they can provide valuable insights and advice throughout the buying process.

Your strategy for analyzing real estate markets through AirDNA and estimating the potential success of short-term rentals in the area is a smart move. Google the awning airbnb estimator for a free tool that lets you see all the nearby Airbnb's. Comparing the results with long-term rental prices will give you a good idea of which option is more profitable for each property.

Offering no more than market value and aiming to make at least one offer every four months is a good goal to have. It's important to keep analyzing potential deals and not rush into making an offer if it doesn't meet your criteria.

Overall, it's great to see that you are taking a proactive approach to achieving your financial goals. Keep up the hard work and stay focused on your plan. I wish you the best of luck in your real estate journey!

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Conner Olsen
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  • Austin, TX
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Conner Olsen
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  • Real Estate Agent
  • Austin, TX
Replied Feb 21 2023, 09:33
Quote from @Joanna Liriano:

Hey folks, 

My name is Joanna Liriano and I am dead set that I will buy my first property this year. I am reading Real Estate Rookie by Ashley Kerr and I am learning about real estate as if it was a part time job. I've worked on my first goal and just wanted to share it with you guys. I feel that the more people know about your goals, the more pressure there is to make it a reality. #Accountability. I am open to hear feedback, advice, and/or some guidance. So here we go:

I want to profit $15,000 per month by 2033 because I want to feel financially free so I can still make a living without having to work as someone’s employee. I will do this by buying 15 small multifamily properties in North Jersey that yield at least $1000 a month in profit through short-term rentals.

  • Leads: I’m going to search for properties in Hudson County, Bergen County, Passaic County, Morris County, Essex County, and Union County. I will speak to a housing counselor for down-payment assistance programs. I will compare loan officers for the best home mortgages and pre-approval. I will also find an experienced real-estate agent who can help me find good deals.
  • Analyze: I will analyze real estate markets through AirDNA and estimate how successful Airbnb would be in that area by calculating average daily rates, occupancy rate, and revenue. I will compare these results with long-term rent prices to see which option is better.
  • Propose: I will offer no more than market value. One out of three offers tend to close. I need to offer at least one every four months. This means I need to analyze 5 deals a month, or one deal a week.
  • Success: Close on the first contract.

 Congrats! I like the goal and the long timeline. Definitely achievable! Consistency is all that matters.

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Fredy Sandoval
  • Investor
  • Long Island, NY
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Fredy Sandoval
  • Investor
  • Long Island, NY
Replied Feb 21 2023, 10:11

Hey Joanna, 

Congratulations and welcome to BP... as advice try to analyze a lot more properties per week as most of them will not be deals.

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Chad McMahan
  • Residential Real Estate Broker
  • Sedona, AZ
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Chad McMahan
  • Residential Real Estate Broker
  • Sedona, AZ
Replied Feb 23 2023, 09:38
Quote from @Joanna Liriano:

Hey folks, 

My name is Joanna Liriano and I am dead set that I will buy my first property this year. I am reading Real Estate Rookie by Ashley Kerr and I am learning about real estate as if it was a part time job. I've worked on my first goal and just wanted to share it with you guys. I feel that the more people know about your goals, the more pressure there is to make it a reality. #Accountability. I am open to hear feedback, advice, and/or some guidance. So here we go:

I want to profit $15,000 per month by 2033 because I want to feel financially free so I can still make a living without having to work as someone’s employee. I will do this by buying 15 small multifamily properties in North Jersey that yield at least $1000 a month in profit through short-term rentals.

  • Leads: I’m going to search for properties in Hudson County, Bergen County, Passaic County, Morris County, Essex County, and Union County. I will speak to a housing counselor for down-payment assistance programs. I will compare loan officers for the best home mortgages and pre-approval. I will also find an experienced real-estate agent who can help me find good deals.
  • Analyze: I will analyze real estate markets through AirDNA and estimate how successful Airbnb would be in that area by calculating average daily rates, occupancy rate, and revenue. I will compare these results with long-term rent prices to see which option is better.
  • Propose: I will offer no more than market value. One out of three offers tend to close. I need to offer at least one every four months. This means I need to analyze 5 deals a month, or one deal a week.
  • Success: Close on the first contract.
Hi Joanna.
I highly recommend you simply work with a seasoned STR specialized real estate agent in the market(s) you want to pursue. They will provide the top "leads", they will analyze and give you projections (Which you can verify with a local STR specialized PM), they will suggest a profitable offer that lines up with your needs and goals, and then you will close escrow.
MUCH easier and then you are not reinventing the wheel.

I find that even non-seasoned and non-specialized real estate agents that close some STR transactions, have no freaking clue what they are doing- so be picky and get a really good agent. They will roll out the road map to success and make it easy to build a killer portfolio.
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Vanessa Ivonne Hernandez
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Vanessa Ivonne Hernandez
Pro Member
  • Lender
  • Jersey City, NJ
Replied Feb 24 2023, 07:16

You already received great information here so I'll add this (because I'm biased) that working with a mortgage broker will be ideal when looking for lenders. Brokers are there to shop different loan products that are going to help you quickly reach your goal, instead of being limited to one lender. For example, before I became licensed I thought FHA and Conv were the only ways I could build wealth. Now I know there are other creative financing solutions that are aligned with my real estate goals because I needed the extra financial help in the beginning.

Good luck hunting! It sounds like you have the right mentality to take this on. Stay blessed.

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Jake Handler
  • Rental Property Investor
  • Morristown, NJ
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Jake Handler
  • Rental Property Investor
  • Morristown, NJ
Replied Feb 26 2023, 12:48

Love it.  You are definitely someone I want in my sphere.

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Ben Scarborough
  • Realtor
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Ben Scarborough
  • Realtor
  • Gulf Shores, AL
Replied Mar 4 2023, 08:56
Quote from @Joanna Liriano:

Hey folks, 

My name is Joanna Liriano and I am dead set that I will buy my first property this year. I am reading Real Estate Rookie by Ashley Kerr and I am learning about real estate as if it was a part time job. I've worked on my first goal and just wanted to share it with you guys. I feel that the more people know about your goals, the more pressure there is to make it a reality. #Accountability. I am open to hear feedback, advice, and/or some guidance. So here we go:

I want to profit $15,000 per month by 2033 because I want to feel financially free so I can still make a living without having to work as someone’s employee. I will do this by buying 15 small multifamily properties in North Jersey that yield at least $1000 a month in profit through short-term rentals.

  • Leads: I’m going to search for properties in Hudson County, Bergen County, Passaic County, Morris County, Essex County, and Union County. I will speak to a housing counselor for down-payment assistance programs. I will compare loan officers for the best home mortgages and pre-approval. I will also find an experienced real-estate agent who can help me find good deals.
  • Analyze: I will analyze real estate markets through AirDNA and estimate how successful Airbnb would be in that area by calculating average daily rates, occupancy rate, and revenue. I will compare these results with long-term rent prices to see which option is better.
  • Propose: I will offer no more than market value. One out of three offers tend to close. I need to offer at least one every four months. This means I need to analyze 5 deals a month, or one deal a week.
  • Success: Close on the first contract.

Hey Joanna, congrats on getting started and creating a plan for yourself! Many people back out shortly after getting started because of how overwhelming everything can seem at first. Love how you took action to pick up a book though and begin educating yourself on where to start! I think you have a great plan and would be happy to help you out with any questions along your journey. Feel free to reach out!

Ben Scarborough
BNB Real Estate, eXp Realty Southern Branch
Ph. (850) 390-2350