All Forum Posts by: Conner Olsen
Conner Olsen has started 23 posts and replied 1249 times.
Post: When to Hold 'em and When to Fold 'em???

- Real Estate Agent
- Austin, TX
- Posts 1,263
- Votes 941
Quote from @Ian Turner:
Looking for some discussion and philosophies regarding when to continue operating a rental versus selling. Here's a property scenario for consideration:
2bed/1bath purchased in 2019. Owned outright with $63,000 all-in, currently rents at $1200/mo with a current value of $200,000 today.
2023 Performance: $13,650 gross income, $1,650 expenses, $12,000 net. Annual RoR right at 19%.
What I'm having a hard time wrapping my head around is IF the performance is based on asset value versus amount invested, that RoR drops to 6% ($12,000/$200,000). With that level of equity and appreciation, is the smart move to sell the property?
Background: Small town investor, self operator. No local staff or team to lean on for portfolio management, maintenance etc. House is minimal maintenance BUT there are always those random things here and there.
Your ROE is 6%, can you find something better in your market? If you can't then keep the property. If you can then sell it and roll it into something better.
Post: NYC Bans STRs. Are MTRs next?

- Real Estate Agent
- Austin, TX
- Posts 1,263
- Votes 941
Quote from @Mo Karim:
NYC just put in place tough STR ban:
https://www.cnn.com/travel/nyc-airbnb-short-term-rental-rule...
After the dust settles, will MTRs be next for cities to go after?
The only city I've heard of banning MTR is Honolulu which is a very different market than NYC. I don't think it'll come to that.
Post: House hacking on student loans

- Real Estate Agent
- Austin, TX
- Posts 1,263
- Votes 941
Quote from @Ben Brown:
Hey! Got a quick question and I'm curious to hear your opinions. So I'm 21, and just got back from a 2 year service mission for my church. Now I'm getting back into the swing of things financially. I'm attending college at a university but with a full ride scholarship, so I don't have to pay anything. I've been thinking about taking out student loans (even though I don't need them to pay for school) and using them to put a down payment down on a house hacking project. I looked it up and it is discouraged (obviously) but NOT illegal. I would go the FHA loan route and the idea is to start building equity at a young age, and get a little more experience in the RE realm. Let me know what you guys think, if it's plausible or just complete nonsense
It is better to get the down payment from another source than it would be from student loans. Also need to make sure you have the income to qualify for an FHA loan. Maybe go in on a deal with a family member looking to invest.
Post: Is it normal to pay part of the mortgage?

- Real Estate Agent
- Austin, TX
- Posts 1,263
- Votes 941
Quote from @Valerie S.:
Hey everyone, it seems like it’s difficult to get the full mortgage covered + cashflow while living in the other half of a multi family. With the interest rates right now it’s even difficult to just get the full mortgage covered.
Have any of you ever paid a portion your mortgage while living in your house hack? I would only do this if the numbers showed that I would cashflow after moving out. Is this a viable strategy?
Yes it is a good strategy! My house hacking rules are:
1. You have to want to live there
2. decreasing living expenses while living there
3. cash flow when you move out
Post: Segmenting for MTR clients

- Real Estate Agent
- Austin, TX
- Posts 1,263
- Votes 941
Quote from @Elizabeth Conklin:
I have an investment property which I have been using for a combination of STRs and a seasonal MTR for the ski season. What platforms do you find most useful to attract different MTR audiences? I know Furnish Finder specializes on travel nurses but how about other populations (seasonal workers, families for a ski season, insurance, etc)?
Do people use Air DNA for market research or other tools?
Thanks!
Elizabeth
Airbnb is great for targeting higher paying tenants. Just set the minimum stay to 30 days and you're good to go. Make sure you adjust your prices accordingly.
Post: Best Practices for MTR; Utilities, and Furnishings

- Real Estate Agent
- Austin, TX
- Posts 1,263
- Votes 941
Quote from @Travis Bohling:
Hi MTR investors and property managers,
What are best practices and innovative solutions for the 2 subjects below:
Utilities
1. During periods of tenancy who should have the utilities in their name, landlord or tenant? Pros and cons of each strategy?
2. For those who believe landlord is the answer above, do you include internet access?
Furnishings
1. Efficient inventory methods. Are you counting dishes or do you limit your concerns to the big-ticket items?
2. Any slick new solutions to troubleshoot tech issues with residents (usually tv or internet questions)?
Utilities - I pay utilities. I do not charge the tenants. It is included in the price. Yes internet is supplied (personally I believe it's standard).
Furnishings - Buy double the amount of dishes of the number of people who stay. You'll have to replace dishes every couple years and sheets 1-2x per year. It's a cost of doing business in my opinion. For tech issues I have canned responses and if those don't work I go over and fix. I had to go over yesterday to a property because the whole router needed to be reset for some reason. The tenants did all the troubleshoot possible before I went out.
Post: MTR Furnished Finder - Traveling nurses - thoughts?

- Real Estate Agent
- Austin, TX
- Posts 1,263
- Votes 941
Quote from @Isaac Pyle:
Hey everyone! I'm looking to start medium term renting sometime in the near future, as it seems the numbers in the Old Louisville area make a lot of sense to do so. Good hospital proximity, easy access, and the short term rental permits can take quite a bit of time / have lots of hoops to jump through so I'm not counting on that. Additionally I want to be able to self manage at least for now, and I'm not sure I can do that with STR on top of a full time job, but should be able to with MTR.
Main question- does anyone currently MTR on furnished finder / similar sites in the Old Louisville area? Would love to hear some perspectives on it and if you think it's a viable strategy starting now / in the near future. I'm primarily considering house hacking a 2-4 unit house and MTR the other units.
Thanks!
Check Airbnb and find comps for MTRs in the area. Also check FB groups to see if there are other MTR and what their rates are.
Post: Should I use smartlocks in my STR

- Real Estate Agent
- Austin, TX
- Posts 1,263
- Votes 941
Quote from @Geoffrey Greene:
Quote from @Conner Olsen:
Quote from @Geoffrey Greene:
Are folks using these? If so how do you keep track of the codes and make sure it's ready for the next visitor? I've stayed at some STR's where the electronic door code didn't work and it was a real pain as we stood at the door waiting for help. I want to make sure if I install these kinds of locks that the experience is flawless for my guests. Any advice on how to proceed would most welcome.
Use a Schlage doorlock and always have 2 backup lockboxes.
So you're not recommending smartlocks? Is this just a normal lock with a key in a lockbox? The issue here is code reuse and security right? With a smartlock I can rotate access codes easily over the web? I'm just trying to get a handle on if smartlocks are actually easier/worth it.
Use the Schlage smart lock but always have combination backup lockboxes in case someone gets locked out or the Schlage doesn't work. The smart lock is worth it.
Post: Help! Should I use a HELOC to buy my 1st Investment Property

- Real Estate Agent
- Austin, TX
- Posts 1,263
- Votes 941
Quote from @Shanna Gregory:
Hello, I am new to investing. I currently own a home and have acquired some equity and I am looking to take out a HELOC. The plan is to either use this HELOC to buy a property outright for about 30K-50K, rehab it myself and either sell or refinance/rent or I can take the HELOC and use it as a down payment on a more expensive home in a better area that I plan to flip. My question is, Should I use my HELOC for either one of these scenarios and would one idea be better than the other? Thank you in advance for your help.
David Green said to only use a HELOC for deals that you expect to get your money back in 12 months or less.
Post: Is a house hack a liability or asset?

- Real Estate Agent
- Austin, TX
- Posts 1,263
- Votes 941
Quote from @Ben Einspahr:
It is a common argument whether buying a home is considered an asset or liability. IMO that home is a liability b/c it takes money out of your pocket, not back in. Even though, yes it is appreciating.
Now, my question to the BP community...
If I buy a house hack and it decreases my living expenses to $500/month, would you consider that house hack a liability or asset?
Excited to hear everyones thoughts!
I'd say it's more of an asset than a liability. When you move out it's 100% asset (according to the rich dad poor dad definition).