Help me over my fear ...

5 Replies

Hi,

I'm about to do my first investment in the US (I have a previous one outside the states).

I'm about to put down 80% of my complete savings.

The deal I'm looking at (using the pro calculator) is Cashflowing 4000 USD/ month at about 12 % ROI.

My money down is around 400K.

Above deal is in a high entry barrier marked and based on legal Airbnb operations. The city is extremely strictly on Airbnb properties. This deal would allow and also grandfather it into the future in case the city changes its mind.

Above deal also includes an investment of 200k to renovate the house.

What you all think?

I'm still not sure if I should rather invest my money into several smaller units one at a time instead putting all into one basket. But on the other hand. Several smaller units are several new buckets of independent issues to deal with.

Hey Pat! 

I hope you're doing well.

It would be hard to offer any advice w/o further info. What city/state are you looking to invest in. If this potential area is cracking down on STR's you may have an issue w/ growth in the future....or....it could make yours even more valuable. Hard to tell at this point.

Why are you choosing STR's vs. other methods?

Talk to you soon! 

@Ryder Cotton

Only with STR it makes financially sense. With long-term the income is a 1/3rd which will not cashflow.

Yes you are right the city might come over me. But honestly what I have seen so far they are grandfathering past rights in.

Meaning all Airbnb which existed before they made the rules all can legally continue.

It's Charleston. And the location is walking distance to downtown.

What's your background?

@Pat Leri Got it. At the end of the day, if you're comfortable with a STR and you're confident it will cash flow, then I would say go for it. Are you going to have a STR manager in place?

Also, why are you steering away from using the money purchase several, smaller units?

I don't have any STR owner/operator/manager experience; however, I am a licensed realtor in CA & TN w/ more than 4 years experience. I've had the pleasure of working on 30+ transactions and I also property managed 45 units before I moved from Cali.

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