Where to start with buying my first rental?

Question

Hello all, I would like to purchase my first rental or AirBnB. I own my home, mortgage free, its value is 1 mill. I work in the Oil and Gas sector with a wage of 220k CAD per year.

Whats the best way to start on this journey?

Thanks for your time.

Anthony Simboli · Answer

@Brent Hannam I think the BP community can help you better if you let us know what your goals are (i.e. why specifically a rental/air BnB).

Tons of different strategies we all use here so we can guide you to the right forums/books etc.

@Erickson Sainval posted a good link as well!

Erickson Sainval · Answer

I would start with Brandon's guide. It will build a solid basic understanding. Like he says, pick a niche you think you will like and master that.

Link: https://www.biggerpockets.com/...

Julian Sage · Answer

@Brent Hannam LTR vs STR, depends on your goals on how you'd like to start. I think the best way to start is pick something and just take action.

Anthony Simboli · Answer

@Brent Hannam thanks for the information. I have not had direct experience with Air BnB with my own properties but I will say you always run a risk with people coming and going from a property.

I understand your friend has had a bad experience with renters, but at the same time you could learn from his mistakes. I'd imagine if he went 2+ years without knowing someone else was living there, he nor a property manager was overseeing the property or lease agreements.

Also, just to warn you, any investment whether it be buy and hold, flipping, BRRRR, Air BnB, House Hacking etc... all require attention to detail and until you have many systems in place, you'll have to put in the work. I'm not trying to scare you off, I just want to make sure you begin to understand the amount of work involved with any strategy. Would be more than happy to talk to you about getting started in a chat if you ever need input.

Thanks!

Brent Hannam · Answer

@Jaeseok An thank you for your reply, appreciate the input. Gives me something to look into.

Jaeseok An · Answer

With your kind of budget, I'd look into buying a block of units to run them as a short-term rental. A lot lower operating cost. A few kinds of research you need to do. Better if you use data. - You need to find out average occupancy rates and ADR in your area to see if it makes sense to do the short-term rental. - Which type of property has the highest cash on cash return in your area. Is it a studio? 5bed room houses?

Brent Hannam · Answer

@Anthony Simboli hello, my goal is to stop traveling for work and being away from home for 21 days at a time, Im basically home 6 months of the year.

I'm unsure about a rental versus Air BnB because, for example..a rental on my street, owned by a friend was nothing but a nightmare for him.

Long story short...Original renter moved out, but had let a friend stay.

2 years later, house is a ruin, the group of people who took over the home have finally been forced out after not paying rent for those 2 years and my friend is mentally drained.

But... and AirBnB on my street does very well, is occupied near nightly and they haven't had any issues..knock on wood.

Where to start with buying my first rental?

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