Investor · Alexandria, VA · Member since 2016 · 859 posts · 460 votes
5y
@Caleb Brown great stuff. Where are you looking to buy a vacation rental? This is one sector of real estate that I haven't pursued but interested for sure.
Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
5y
@Cassidy Burns, my goals for 2021 are to acquire another $500K of producing real estate, pay off three mortgages and flip 2 properties that I have neglected for years. I also have a goal to hire an assistant as my first full time employee, and to turn at least one of my LTRs into a short term rental.
I have had an unexpected development however, a large mass of out of state buyers have bought up nearly every single property for sale in my town and the state. Currently there are only 14 properties left on the MLS that are not under contract, and none of those has any chance of cash flowing.
Maybe I need to add a goal of finding out how to acquire more cash flowing properties in a sellers market.
Investor · Alexandria, VA · Member since 2016 · 859 posts · 460 votes
5y
@Jerry W. all great goals. A few questions / thoughts:
-$500,000 in valuation so you will need around $125,000 to invest into equity. Unless you are buying a new primary / house hacking a smaller multifamily. Doable ?
-Pay off 3 Mortgages: I like this strategy. I think there is something to be said to have completely "liquid" properties and some free cash flow in your portfolio, depending on where you are in your investing cycle / career. Maybe pay them off and then open a LOC on 1-2 of them to have access to a little more capital?
-Flip 2 properties? Are these properties that you own already? Or looking to purchase 2 flips? As you said, market is hot, so I actually think its a bad time for new flippers to get into the game with risk of overpaying due to lack of experience
-Are these out of state buyers coming to see the properties? Or basing on numbers alone? Are the rents in your area increasing significantly?
I think thats all of our issues. The cash flow is directly related to the deal flow.
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
5y
@Cassidy Burns Vacation rental for a few reasons. I live in KC which is a great market for long term rentals and multi but short term rentals in KC doesn't excite me. 3 hours SE of us is Lake of the Ozarks/Branson which are beautiful and perfect areas for it. I can also use it to take a break from here and go on a mini vacation. Also Branson(where I'd buy the condo) gets around 9 million visitors a year so places stay pretty booked. Along with that prices are pretty affordable compared to other vacation spots.
Rental Property Investor · Fairfield, IL · Member since 2021 · 8 posts · 10 votes
5y
My 2021 goal was to purchase no properties, and instead focus solely on remodeling a home I bought for myself.
That lasted about 2 1/2 months...closing on a rental in the next few weeks and eyeing an apartment complex along with a house going up for sheriff's auction.
Northern Virginia · Member since 2020 · 15 posts · 4 votes
5y
#1 goal is to buy my first rental property! Was hoping to find one in my own backyard, prices are a little to high for me. Looking into out of state markets now. Excited for what 2021 will bring.