All Forum Posts by: Frank Patalano

You could consider doing a passive investment into a syndication or a crowdfund for $50k or less. 
The investment is rather illiquid so you may be stuck if you needed the money until you sell or refinance that is why I suggested a small amount.

I was working 7 days a week and still self managed 15 units at once. I had a list of people to call if I was not available. I had a preferred handyman, plumber, electrician, etc.

In short term rentals, I have heard 20% being common in some markets. Long Term rentals should be 7%-12% of gross rents.

I would pick Cashflow first. Appreciation is a bonus.
I haven't looked at San Antonio lately. 
If you plan on self managing you could see significant savings vs investing out of town or out of state.

Overall buying based on "AirBnb potential" sounds like a terrible concept. 1 excited municipality can wipe out your profit with the swipe of a pen.

1. Traveling is sometimes a trend. Tiktok has made it cool to go to one place one month and then another next month - Traveling is a trend? Nah. But today's technology and culture does allow more people than ever to work from anywhere.

2. Heard AirBnb is getting more strict with their regulations - larger companies/hotels are now listing their properties there. - Hotels have been on there for a while. I'm more worried about municipalities cracking down with regulations. Airbnb.com is actually aggressive watched by some towns and you can get fined if it is in an area not allowed by zoning.

3. AirBnb is getting more expensive. Recently found that it was $200 cheaper to use Booking.com than AirBnB. The nightly cost was the same. After all the taxes and fees being charged on AirBnb it didn't make sense for a short trip. Possibly for a longer stay it could be justified. - Are you talking for a hotel? Airbnb does a good job persuading hosts to discount long stays.

4. People are buying very expensive homes (1M and up) and hoping to get crazy returns - recession could impact how nice of a place people would rent. I hear lots of people who own airbnbs are getting most of their requests from 20 year olds looking to party in their mansion. I'm seeing some slowdown because with more new people during short term rentals there has been an increase in supply.

"What is holding you back?"

4 years ago this week, I asked this question and it got thousands of responses. The market roared upward for 3 years after that. Over the last year, interest rates have increased and it has affected some markets more than others... I'm not an agent. I'm just an investor that helps others.

When I help new investors with buying their first property I often want to know what is holding them back from pulling the trigger. So I'll ask here.

 If the person is bringing up legal issues on the regular, you should help them move on and find a new tenant.
I am currently working with 3 different PMs and know a few more.

Allison Krause and Adam J. Rose are both RI attorneys that are investor and wholesaler friendly.

Rhode Island also implemented a number of sales taxes and hotel taxes for AirBnbs in the past couple of years. 
Big ones and little ones. Don't forget to pay the $10 sales tax permit fee.

 Hi Linnette, 
I run the local RI REIA (RIREIG). Rhode Island is an easier place to invest than say Miami because the amount of money to get started is less and there is a better chance to CashFlow. Miami has had better appreciation. I like Cranston, East Providence, and Pawtucket. Part of your decision involves if you are going to owner occupy the property.

I would recommend an LLC.

I've been doing this for many years and have some real estate friends who are also attorneys. I've never heard of anyone opening an LLP.
So states only allow LLPs for certain professions, such as lawyers, accountants, etc.

I don't remember the last time that I have seen a municipality build a road unless it was for a specific public need. 
Yes the cost to build a road is astronomical. Especially if you have to extend public utilities and if the city/town is going take over the road after you build it.