All Forum Posts by: Andres Murillo

Realistic is a funny term. 

People are buying in those "oversaturated", and "overpriced" markets every day. It's realistic for them. I think as investors we often fall into a trap of trying to engineer the perfect investment decision. We have so much data and so many ways to analyze properties but we'll regularly lose bids to investors with fewer resources. 

You can absolutely still do well with STRs today. Find yourself an agent resource who understands how to balance cash flow analysis with the reality of owning investments.

When you're getting started with STRs market selection is key. Most people never invest or make poor decisions because they don't understand how to pick a market. I'm an advocate for approaching the market decision by first considering the "city profile". 

For example - my two favorite "profiles" are...

1. Local weekend getaways from major metros.

2. Niche neighborhoods of established metros. 

Once you decide that profile 1 or 2 is best, you can begin to research "best weekend getaways from [insert metro city here]" to get the ball rolling. Then narrow down the list of options based on price and competition. Find an investment agent like myself, then start making realistic offers. 

One of my mom's favorite sayings - "Lo barato cuesta mas". 

Translation - "Cheap costs more".

I think the order of preferred management is as follows:

1. Self Managed - do it all. 

2. Self Managed with support - hire what support you need. Interior design, marketing, cleaning, etc. Pick what you don't have the knowledge or bandwidth for and find quality help. 

3. Local Manager - can typically offer partial support for "2" but is also designed to be full service. Fees will vary and you'll have to work with several if you scale, but their local contacts, knowledge, and smaller books of business provide better results. 

4. National Manager - can be great for helping create a similar process as you grow your portfolio. Don't plan on "economies of scale" here. They will still use local vendors so your costs won't compress because of their nationwide presence. 

I have a great partner in St Pete - Chris. 

I mostly appreciate his efforts toward optimizing operations at all times. He's not a "set it and forget it" type of manager. He also owns his own STRs and understands the market well. I can PM you his details. 

Hey Bob! I'm helping investors find, analyze, buy and transition STRs throughout CA, GA, NC, AL, and FL. I'm a licensed agent and work with amazing teams for management, financing, and licensing. I sent you a PM with details on how I can help. 

Hey Don! Traditional BRRRRs in the LA County area aren't really available today. With our higher prices, rent control causing pent up demand, and some recent local value pullback there are lots of factors working against this strategy. I'm helping a new investor search for a "modified BRRRR" at the moment. After refinancing he'll pay substantially less for his housing than he is now.

Hey Damian! I have a couple suggestions here  

1. “Marry the property, date the interest rate.” Rates will drop eventually but the house you’re analyzing may not. If a property is in the red a few hundred bucks, analyze it with a 5% internet and see where you might be in the future. You can refi and pull cash out in the future to invest in your next deal. 

2. Diversify your strategy or your market. I’ve built a career helping people buy Traditional Rentals in growing markets, but in todays world I’m focusing on Short Term Rentals for clients hyper focused on cash flow. The higher average monthly incomes help properties cash flow much more regularly. You might also consider other markets. Between advisors like myself and local managers it’s easy to invest further than arms distance away now. 

Happy to chat more about any of these ideas. 

Hey Ken! Just hit the MLS and underwrite properties daily.

Find properties in areas you like and run them through your spreadsheet. You should pull rent comps, figure out the tax rate, search up PM fees, research local vacancy rates, etc. Doing this daily will help you spot killer deals quickly and help you realize what’s truly achievable in your market. 

A lot of would be investors never start because they are shooting for returns their market doesn’t provide. Underwriting daily will help you clearly understand what’s out there. 

Hey Jordan! I help investors regularly purchase STRs throughout the country (including Coastal NC). 

This is a market where your comps "finishes" or "designs" can vary drastically. You'll want to be sure to account for your competition when selecting and designing your space. It doesn't take a lot to stand out as a better stay in some neighborhoods, but might be more competitive in others. Happy to chat if you'd like some additional perspective.

Eric - there are CAR forms you can use for a lease agreement, if you have a great relationship with a Realtor they may help you fill one out. I do this often for clients in CA for traditional leases. 

You'll also want to ask for feedback on the property itself. Because they're staying longer term they can provide great insight that'll help you adjust for future guests. Whether it's feedback on the sheets, the number of plates, how easy the place is to navigate overall, etc. - any feedback now can help you tweak the place and ensure better outcomes in the future.