Advice for a young entrepreneur: Vacation rental properties

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Advice for a young entrepreneur: Vacation rental properties

Derek Kulp
Bath, PA · Member since 2015 · 1 post · 0 votes

I would like to thank you all in advance for your time reading/responding to this post, anything you have to offer would be very helpful and appreciated.

I am planning on pursuing a venture in real estate, specifically specializing in vacation rental properties. First I’ll start out by giving some basic info about myself and my situation.

I currently am 19 years old, live in PA and in the last semester of getting my Associates degree in Business Administration. I perform very well in school, as my current GPA is 3.94. This summer I will be moving down to the Myrtle Beach area with some family friends. I have already applied and been accepted to Coastal Carolina University so I have the option of going there in the fall if I would want to. My major at coastal would be Finance. A few months ago I was offered a job doing financial related work (taxes, accounting, consulting start-ups), which I took, so I do have a job. I will be able to keep that job once I move down to Myrtle, so I would have income coming in while pursuing the real estate venture. This job does not take up a large portion of my time, so I would still have a lot of time to focus on the real estate business.

I have secured financing, not sure the exact amount yet, the details still have to be ironed out, but between 50-80k, with a low interest rate and the investor is very willing to be flexible. So to me, on the financial side of things, I am in a fairly good position. Keeping it very general, I am going to focus on locations on the beach/a block from the beach, and also properties within the vicinity of 2+ golf courses, as I believe they have the most potential. The goal would obviously be short-term rentals. I also plan on hiring a property management company, but I will be as involved with everything as I possibly can be. Over the summer I am also planning on becoming a licensed real estate salesman, that way in three years I will be able to apply for a broker license and act independently, abling me to solely broker my own deals.

To wrap things up, here are a few questions I would love your input on:

Opinion on what I should do with school? Should I even bother with going two more years?

Would it be a good move to get real estate licensed in my situation?

Any other comments, advice or concerns would be greatly valued and respected. Thank you all again!

Derek

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  • Maura Paler
    Rental Property Investor · Saratoga Springs, NY · Member since 2014 · 122 posts · 101 votes
    11y

     You have a 3.9 GPA and are studying finance? YES continue your studies, you can do RE on the side and that finance knowledge and the income from your job will come in handy. I don't have an opinion about the RE license. For vacation rental property I would suggest you manage it yourself - a property manager and reservation agent can be very expensive - if you are nearby do it yourself and save a ton of dough. All it takes is some energy, attention to detail, and some hospitality skills. Good Luck! 

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  • Sean Peters
    Developer · Portsmouth, NH · Member since 2013 · 24 posts · 6 votes
    11y
    As a recent business grad who jumped right into real estate, I quickly realized that I did not need my degree.. And learned a lot (enough to get started) by reading about 5 books... If you think that real estate is definitely the path for you, then I would say that it is not necessary to get into more debt for schooling... But you won't know until you get into it! I would say that even though I do not need a degree to do what I am doing currently .. I am still glad I got it. Who knows what path we will end up on 10 years from now!
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  • Scott Sutherland
    Real Estate Broker · Austin, TX · Member since 2013 · 87 posts · 73 votes
    11y

    I love that you have a sense of urgency and are ready to get right to it. That being said, you should definitely finish your degree program.

    To hit the ground running at 21 or 22 years old will put you decades ahead of most investors.

    I spent 12 years in corporate before going solo as a realtor and investor. In hindsight, I could have made the leap after 5 years just as easily. But in addition to finishing my undergrad degree, I was able to get my MBA in the evenings while working. 

    The degrees proved invaluable for creating a network of business partners and investors and increased my credibility with clients.

    The jobs created the W-2 income which allowed my wife and I to get our first couple of investment properties with conventional loans (30 year am, 4% rate).

    Good luck with everything!

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  • Jeremy Shepherd
    Rental Property Investor · New Martinsville, WV · Member since 2012 · 105 posts · 44 votes
    11y

    Opinion on what I should do with school? Should I even bother with going two more years?

    No. 

    Would it be a good move to get real estate licensed in my situation?

    If you want to sell real estate to people for commission.

    Any other comments, advice or concerns would be greatly valued and respected. Thank you all again!

    Buy vacation property further south so it isn't seasonal income. 

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  • Chaz Reid
    Investor · Fayetteville, NC · Member since 2014 · 916 posts · 190 votes
    11y

    Welcome to BP @Derek Kulp 

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  • Aaron Hall
    Real Estate Investor · Santa Rosa, CA · Member since 2014 · 60 posts · 33 votes
    11y

    I have to admit success in RE is going to be through who you know.  @Scott Sutherland  advice to keep going is the right one.  You will meet so many people that you can use in your network. Some of those professors have money just sitting in 401k looking to be self directed.  You can build your track record while in school .  TALK, TALK, TALK, with everyone you know about your goals, this will help you refine them.

    Also follow @Maura Paler advice, do it on the side.  Take it on like a class project but instead of making things up, do REAL research for REAL properties. 

    As far as going south, as @Jeremy Shepherd  mentioned, talk with  @Levi Bennett.  He has given me some insight to a VR market that you should definitely explore.

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