All Forum Posts by: Bryan Stengel

Mike is absolutely right.  I would never want to deter anybody from an area such as that in the Smokeys.  I think I should correct myself and say that builders are certainly not the only ones to reap profits from there.  I think I'm speaking for myself in terms of a price point that I'm personally not comfortable with over there since it is not in my own buy box yet.  However, those cabins are great investments.

Hi Tariq, the STR markets are very saturate especially in the prime areas. There is a lot more competition than before. Listing prices for areas like near the Smokey Mountains are exceptionally. You'd have to be a builder to really reap any sort of profits from an area as such. Truthfully, I don't think a Capitalization Rate of 8% is terrible plus you'll have an appreciating asset along with the tax benefits. At this point, I definitely would find some solace in that. I currently have an STR in the Poconos and I would recommend if you ever pick a home here to consider style. The Realtor that helped me find a home told me it really didn't matter upon purchasing, but later it did become apparent that in VRBO or Airbnb renters are looking for that Chalet-style home with some amenities. If you ever decide to look over in this area, I'd be happy to put you in touch with the systems I utilize over here and give you insight on which areas to look for. Overall, it's pretty affordable too. For a nice possibly furnished STR, you are looking at between $250,000 to $350,000 depending on your budget. Feel free to send me message.

 Hi John,

Of course!  How much cash flow are you looking for?  I am pulling in between $500 to $1,000 from mine each month even at a high interest rate with about 25% down for each.  They were both turnkey at the time of purchase too. 

Hi John, I actually do invest in the Scranton area in the Greenridge corners close by Marywood University.  The cash flow has been pretty good once full.  Vacancy takes about 30 to 45 days for me to fill.  They don't appreciate fast like a single-family home might in this area.  I have a mix of students and families.  Turnover hasn't been too often either.  As long as you do right by your tenants, you'll be in good shape.  Dunmore is excellent too.  You can't go wrong in this area.  There is a lot of upside and the future looks good too.

Hi Tonya, thank you for informing us about such scams!  I see it advertised all the time about how these companies are able to generate leads and allow you to sit in the driver seat while they do all the hard work.  It is sad that no enforcement can even go after their fraudulent business practices. 

Hi Paul, it all depends on your comfort level.  I think that the cash flow you are generating from these properties is outstanding.  Most people are happy just to not take a loss each month.  I feel as though your buy box puts you in a position for more flexibility.  Multi-family for me has been the way to go and has left me assurance that even during vacancy, I will be covering most of my mortgage.  At full occupancy, the cash flow I just keep in reserves for repairs or help pay the principal.  Real estate is about having that flexibility is about utilizing leverage if you want to or pull back when you rather just collect.  Ultimately, putting more down will allow you to get a interest rate and lower mortgage payment over time.  I personally never like to over leverage myself too, but then again maybe I need more experience in this area too.  

Hi Robert, it seems as though that you are in a great situation.  It depends on what you are comfortable doing.  You could always do a house hack in a multifamily space.  Remember up to four units is still considered residential.  However if you do not want to live next to your tenants and run the risk of being in an uncomfortable situation, you may put a small amount of money down with the right loan structure.  As mentioned, I would definitely seek out the advice of experts in those specific markets depending on where you decide to go. 

Hi Sean, that is truly an interesting strategy that you are considering.  I would definitely reach out to several brokerages within the area that could better facilitate as the middleman when Insurance Companies do reach out.  As a medium-term rental, you'd be in better position to be connected with Insurance Company that way.  

Hi Abraham, I have definitely had some success.  I did my first long-term holds in Scranton after much research and have enjoyed a steady cash flow.  I am currently invested close the Marywood University where I do have a combination of family and student tenants.  I would say it's been a learning experience so far.  

Hi Tom, I would reconsider taking out a full two hundred thousand dollars for a HELOC unless the numbers make sense in terms of possibly making that money back and paying off the loan. It is true that you'll probably only be responsible for paying off the interest for the first ten years. Truthfully though, I would do a cash out refinance for a large sum of money on my primary residence to ensure I do get a better rate. I know a HELOC normally does not come with much of a closing cost, but over the long-term, this might make the most sense. You will also get better terms on the refinance if it is on your primary residence too. In addition, the tax implications are better on a refinance which you will be able to deduct. A HELOC will not allow you to deduct I believe on the interest unless the money is utilized for repairs on your primary residence and not to buy another home. Best of luck!