Longest Distance to Self- Manage First STR?

Investor · Thousand Oaks, CA · Member since 2019 · 31 posts · 28 votes

@Bien Nguyen I live in CA and bought in TN. I have been self managing for 4 years now. If you have good cleaners and maintenance people it can be done.

1 Reply

Trent Reeve

Atlanta · Member since 2022 · 718 posts · 648 votes

3y

Quote from @Bien Nguyen:

My husband and I are new to Bigger Pockets and have been wanting to own an STR and Bed and Breakfast in the future. We have goals of obtaining and running 3 STR's within 5 years or less as we both work full time, and I do real estate in addition to my full time job. We have a goal of buying a STR by the end of the year if everything goals well.

We have been looking at different properties such as cabins and homes in North Georgia that area close to wineries, outdoor activities, and state parks; as well as beach condos in South Carolina and Florida.

However, we are struggling with whether our first STR should be close even if the numbers are not as strong. My husband is concerned about the distance and he is particular about maintenance work/ renovations and wants to be close where he can drive to check on the property. I, on the other hand, am more about the cash on cash return and believe we need to focus on a good market as long as it is within the state of Georgia (we live in Savannah area) or within a 2 hour drive if out of state (like South Carolina or Florida).

How did others start and did you buy a property that was close as your first STR? Thanks in advance for your feedback!

we live in Atlanta, bought our first property (for a STR) in Panama City beach back in October. You can do it, you need a good cleaner you trust, a maintenance person (luckily, our cleaner partners with one) and then some emergency numbers "just in case" (i did have to call a 24-hour plumber 1 time so far). and then i come down every few months or so to check on the place. thats also how we found out at some point guests have stolen - spices, laundry pods (my fault for leaving out too many), games that we left for people to play, wine key. We do not work in real estate, but under hospitality. You can do it, just need to prepare right.

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V.G JasonPro Member

Investor · Member since 2022 · 3k+ posts · 3k+ votes

3y

Self managing isn't only about losing the time & effort, but like Eliot said. It's also exposing yourself to legal liabilities. To me, that's the most dangerous and the reason to avoid.

Savannah, GA, is an excellent area and I as I posted here a month or so, am a large and growing investor there. The STR rules there are mighty tight, but absolutely primo. I would recommend some other areas and finding the right agent, handyman, PM team through these resources on BP.

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Trevor Schmitt

Rental Property Investor · Fargo, ND · Member since 2017 · 129 posts · 107 votes

3y

Quote from @Bien Nguyen:

My husband and I are new to Bigger Pockets and have been wanting to own an STR and Bed and Breakfast in the future. We have goals of obtaining and running 3 STR's within 5 years or less as we both work full time, and I do real estate in addition to my full time job. We have a goal of buying a STR by the end of the year if everything goals well.

We have been looking at different properties such as cabins and homes in North Georgia that area close to wineries, outdoor activities, and state parks; as well as beach condos in South Carolina and Florida.

However, we are struggling with whether our first STR should be close even if the numbers are not as strong. My husband is concerned about the distance and he is particular about maintenance work/ renovations and wants to be close where he can drive to check on the property. I, on the other hand, am more about the cash on cash return and believe we need to focus on a good market as long as it is within the state of Georgia (we live in Savannah area) or within a 2 hour drive if out of state (like South Carolina or Florida).

How did others start and did you buy a property that was close as your first STR? Thanks in advance for your feedback!

Being that this is your first STR and you do not have an established team in any area, I would suggest an STR as close to you as possible. As you know, handymen are incredibly overbooked right now and it is a struggle to find someone to do things. Without a team in place, you could be stuck trying to find someone to complete even the simplest of tasks when needed, or you will be paying an outrageous amount to have the work done, which will destroy the ROI you had planned for. This type of thing you can take care of if the property is near you.

1 Reply

Julie Nealey

Member since 2022 · 94 posts · 22 votes

3y

I live in Seattle area and bought my first STR in Phoenix. I self manage and have not had any trouble at all. I just have a great group of people that I work with. Great inventory and cleaning instructions and a plumber, HVAC and electrician that I can call at any time and get them to our place.

1 Reply

Bien Nguyen

OP

Realtor · Savannah, GA · Member since 2023 · 41 posts · 13 votes

3y

Quote from @Timothy Howdeshell:

@Bien Nguyen

I suspect that this is very individual, but most buy properties close to where they live at first. My first purchase was a primary residence where I obviously lived in the area and property.

All of my subsequent purchases have been sight unseen out of state (no STR though).

The most important thing is to get into the game though and start owning rather than planning. You want to do that in a way that 1. Doesn't make you hate real estate and 2. Doesn't take you out of the game financially.

Therefore I recommend starting with something close that you can touch, get eyes on. It's not that you can't do things from a distance. But this may be the confidence booster that gets you into the game. You can optimize and solve for higher returns later.

Thank you! I feel like we are getting analysis paralysis because of the current interest rates being higher and all the gloom and doom around the economy and inflation.

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Timothy Howdeshell

Investor · Fresno, CA · Member since 2016 · 222 posts · 237 votes

3y

@Bien Nguyen

yeah totally get that! And don't feel bad. That's very normal.

it's important to realize though that there's always doom and gloom. There have been naysayers for the last decade and probably longer. Things like interest rates and the overall direction of the economy are important considerations, but they are only that considerations. They are challenges that need to be addressed in order to move forward but they are not impediments. There's always a way to move forward and there are always deals happening. Right now is undoubtedly a tough time in the market, but that doesn't mean you can't have success.

Analysis paralysis is real. But it is the enemy. No one has ever analyzed their way to success.

here are some things that might help you move forward. First consider having different exit strategies for your property. This is always a good idea, but if you know that you can move into the property as your primary or rent it out as a long-term rental, then the downside risk is greatly reduced. Next, consider buying a property that needs a bit of work or buying one from an off market distressed seller. These deals are harder to come by and you can't just pick one off of the MLS, but in this market you may need to do a little more work to find the right property. By doing some rehab, you can force appreciation and therefore give yourself an equity buffer. Worst case you can sell and hopefully break even or only lose a little bit of money.

lastly, consider finding somebody local to you that is already buying short-term rentals currently. pay them for their time if you have to, but get some outside experience, opinion and help by relying on their expertise, you don't need to be the expert to get started and that should improve your confidence in moving forward.

Believe in yourself and your potential. Everyone in this platform wants you to be successful.

2 Reply

Cliff H.Pro Member

Rental Property Investor · Nashua, NH · Member since 2014 · 610 posts · 486 votes

3y

Same question that’s been debated in long term rental markets for years. “Do I buy in my backyard or across the country?”

The difference?

Most investors do not living in close proximity to a top STR market.

Consequently self-limiting yourself to a close investment will only limit your profits and increase risk by forcing you to make exceptions to generally accepted investment criteria.

10,000 miles indeed.

0 Reply

Mari Puga

Investor · Member since 2021 · 54 posts · 15 votes

3y

Once the property is ready for occupancy, the main thing is to find reliable cleaning crew and a handyman, and at a good price (though in NG), but if these things align, the management is not bad. You can automate a lot. I live in FL and own in Georgia.

0 Reply

Ruth Blue

Realtor · Pigeon Forge, TN · Member since 2018 · 230 posts · 111 votes

3y

My Mom @Rhonda Blue started investing when we lived in Orange County, Mission Viejo CA. Her moto was driving distance in a day. When she started looking it was a choice from Phoenix, Las Vegas, or UT. It was about 6 months of research then she bought 2 - 3/2 bath homes in St George, UT. The second one was a short sale and took about 3 months.

We were planning to move back to her hometown so after about at year she did a 1031 exchange and bought 2 properties in Huntsville, AL and 2 here in Sevierville, TN that are located in between Gatlinburg and Pigeon Forge. Less then a year later our whole family moved back so we officially are not managing from afar BUT

We do recommend for first time managers it worked for her to be driving distance so that she could go and do rentals and only have to drive. NO Flying involved.

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Longest Distance to Self- Manage First STR?

Longest Distance to Self- Manage First STR?

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