All Forum Posts by: Cody Z.

Hi Vinod,

Thanks for your question - The rule of thumb I would ideally look for is no more than a 15-minute walk to the beach from the house. Thinking about it logically, people have things that they're going to carry with them so it probably would be less feasible for them to walk once you go above that. Although, if someone is willing to drive to the beach then it might not matter as much to them.

The best advice I could give would be to use software like AirDNA (STR Data for a specific zip) or speak with a local realtor who does summer leases to get a better idea of what locations are more desirable relative to ocean access and what one could expect for rents. Hope this helped!
 

Congrats on this, btw!

I hope you got to close on your other two 😀.

So this is just from my experience which is limited relative to other folks in the area, but I want to extend the winter rentals next year because they are guaranteed money versus potential. Using MDW as an example, that weekend is not a guarantee because weather forecasts always typically affect shore travel - I worked at a shore restaurant for a number of summers in college so I learned that one well.

I like the idea of monthly summer rentals with my own lease and a mix of Airbnb if I can't find what I'm looking for out of groups. In addition, Belmar noise ordinances are pretty tight so one bad group can do some damage 😅.

I did not use a Property Management company for my winter or summer rentals and I am using RentRedi to collect rent/maintenance requests and I'm liking it aside from the long hold on rents collected (4-5 Business Days 😒). My properties were completely renovated by the 1/2020 so I don't really get pesky phone calls...ish.

No worries at all, I'm happy to help!

Hey Tracy, thanks again for your experience. I can only go by what I have personally heard and gone through but it's up to the investors reading this to do their own due diligence before they purchase. I loved living in the town the past year - even with COVID 😂.

I'm glad you've had a great experience with your rentals as well. Happy investing!

Hey Salvatore!

My only rentals currently are my two units in Belmar - which I love. Currently looking to purchase a 3-4 family at the shore next in the same area. Cashflow is definitely possible at the shore but is more likely going to be using a Summer/Winter Rental model. Some example numbers below using a two-family using a combination of winter leases and AirBnB and monthly rental leases in the Summer months:

The gross monthly cash flow in this example is ~$5,600 and that is using conservative numbers for the units since the basis is smaller. Now, let's look at an annual rental scenario:

So the GCF for this guy is $3,750 - Both of these options make good money so the other factors are going to be what's important to you - time expenditure, mortgage size based on the down payment, etc.

I am biased but I would prefer at least a 3-4 family going forward but if you're renting a large single-family with some serious amenities I'm sure you could still make a good amount. If you need a realtor that is local to the Monmouth county shore area, feel free to reach out.

I hope this was helpful!

Fantastic list. Also, want to point out the hustle of someone doing this versus someday taking pictures and putting a post up on the MLS and waiting...

 Hi Tracy,

Thanks for your question - I have spoken with code enforcement specifically about online short term rentals and I was essentially told "don't tell, we won't ask"... Again, that is actually from someone who works for the Borough in code enforcement, not through the grape vine. In addition, I did pay for my summer rental permit and respected the occupancy limits on my C/O to the letter. I hope this helps and I would love to hear about your experience over the years 🙂

Hi Victoria,

This is not my deal, it is actually Luis's. Good luck

Hey Susan,

I don't think this is as hard as it may seem. If I were doing virtual, then I would hire someone to go out to the property to take pictures/videos with a checklist of the things I want to see. Also, with that same idea in mind, once the property is under contract simply put a lockbox on the house to allow for investor showings (with POF, of course :-)) or set-up a time table with the Seller. I assume they're motivated so I doubt it would be an issue. Just thinking with an open mind.

Hey Rick,

I was referring to tenant screening in the summer months - essentially sifting through all of the inquiries that you will get on AirBNB/VRBO etc. Obviously the market that you're in will affect the types of groups that are looking to stay there (e.g. Long Branch crowd is different than the Belmar crowd). For this year, I used a realtor to find winter tenants because I had a rough rehab with long vacancy so I used their screening process (met tenants during showings, credit reports, income verification, etc.) but I will be using RentRedi for screening and doing it on my own next winter. 2 units - 9/15 to 4/30 & 10/1 to 4/30. I will be doing 9/15-5/15 next cycle to get an extra month of rent out of the year for both. You shouldn't need more than a week or two to turnover units (fingers crossed :-))

It's dealer's choice on whether or not you want to leave your units vacant during the winter - I wouldn't personally as that is throwing cash out the window as well as may cause maintenance issues in the future depending on your plumbing, heating, etc. not being used for an extended amount of time.

As far as them not leaving in time for Summer - I wouldn't worry about that too much. I have spoken with many landlords at the shore who have done winter rentals for years and they have never had an issue - The only issue I have ever heard of is tenant's not paying last month rent before they leave because it's short term and it's not worth you going after them. I look at it like you just screen the best you can and it should work out just fine - and if not, save for "vacancy" to reduce financial impact. Hope this helped!