Hey guys, I have been researching the space for quite and while and have been doing quite a bit of research and seem to find myself having a very hard time pulling the trigger. Any advice?
Consider buying a LTR for your first investment property.
Run the numbers and make sure of what you could net after all expenses. There are several STR spreadsheet tools floating around. Search through the forum.
Read through the forum on past topics and read Avery's book.
Don't get emotionally tied to a property let the numbers do the talking.
Know what the STR rules are for the area you buy your first property.
A 2 bedroom house may be a good first affordable property.
Always ask seller for owner financing you never now what they might say.
Hey @James May, lots of great advice here, but I would like to know where you are looking to buy?
If you are unfettered by kids, then I would look at doing a FHA loan on a 4 plex or something similar. No STRs to get started. You can buy up to a 5 plex and live on one of the units while you rent/rehab the others.
This will give you steady income and essentially allow you to live for free and even make a decent profit. After a year, you can refi the place into a conventional, do another FHA loan on another multifamily, move and do it again.
This way you can build up cash and have a couple of vehicles that product steady income for you. Then branch out to a STR.
@Michael Baum me too. But now I have kids a wife and two out of state STR's lol 😂 I'm all in. If I could back in time I would have house hacked for the first few years. Best way to get started in REI.
Due diligence always helps me jump because it gives me the reassurance that I'm making a good decision. Doing research on how to run a successful STR Business may give you the confidence to move forward .
Join local Real estate investor associations in your area to network with people running this business Find out how most are successful
why do most go out of business
What are the STR laws for the area
What are most people coming to your market for work or leisure
Is the property in mind in close proximity to the reason people come into town
being conservative and cautious is fine. put some work in. call more lenders than you think you need to. visit lots of properties. cast a wide net. talkt to property managers. go to REIAs. network with other investors.
it's like Ronnie Coleman said. everybody wants to be a bodybuilder but nobody wants to lift heavy weight.