All Forum Posts by: Connor Thomas
Connor Thomas has started 4 posts and replied 21 times.
Post: How to get a Short Term Rental in Southern Indiana (Brown County)
- Posts 21
- Votes 2
Quote from @Rosston Smith:
Hey Connor! Were you interested in operating this STR yourself or utilizing a management company? The quickest option would be to partner with a brokerage who can assist you with analyzing deals - https://theshorttermshop.com/
Hey Rosston, I hope to use a management company to help manage the property
Post: How to get a Short Term Rental in Southern Indiana (Brown County)
- Posts 21
- Votes 2
Hello,
My wife and I own 4 longer term rentals in Indiana. We are wanting to buy a cabin somewhere in southern Indiana that we can use as a vacation home for our family to use but also rent out when we are not there. Brown County is the most popular spot, however, doing a little bit of research I have learned that Brown County restricts the amount of short term permits and the best way to get one is to buy a property that already has a permit. I know this is one option but wanted to see if anyone could point me in the right direction to know of any surrounding cities or areas that still fit this bill and can perform well. I am very new to STR so any advice or pointers in general would be great including how to run numbers and also what to look for. The floor of my investment is really to just break even in cash flow but give us a place to use; obviously if it can be higher than even better.
Thanks in advance,
Connor
Post: How to fix this BRRRR when my ARV is less than planned
- Posts 21
- Votes 2
@Drew Sygit I understand it. I just don't know what else to do. I feel like everything seems to be negative cashflow in the markets I am considering especially with a BRRRR. What advice would you have to that?
Post: How to fix this BRRRR when my ARV is less than planned
- Posts 21
- Votes 2
@Taylor Dasch Thanks for the advice. That is really what I am leaning towards doing, I just feel like I am struggling to find cash flow in the few markets I am considering. I would love to just break even or slightly above. What do you think or could you recommend?
Post: How to fix this BRRRR when my ARV is less than planned
- Posts 21
- Votes 2
Quote from @Dan H.:
Assuming my calculation is somewhat close and it is negative >$400/month then at that price point I claim it is not worth holding on to.
A $160k ARV is going to be real challenged to add $100 a month increase per year. $50/month increase per year is more likely. This implies likely over 8 years to have positive cash flow.
To me this property screams flip for someone getting started.
Good luck
Post: How to fix this BRRRR when my ARV is less than planned
- Posts 21
- Votes 2
@Kenneth Soles: Yes I am learning that as well. I believe that the comps that we ran are accurate and the ARV would be between 160-165k so I can at least pull my money out and have no money in the deal or sell. Would it be worth holding onto if I have no money in the deal even if it cash flow negative?
@Scott Allen: I am in the process of getting some closets put in currently. I believe that I can get the ARV between 160-165k and am confident in that. The only issue is that it will be slightly cash flow negative. If that is the case would it still be worth holding onto if I have no money into the deal?
Post: How to fix this BRRRR when my ARV is less than planned
- Posts 21
- Votes 2
@Dan H .: Thanks for the advice. I am currently thinking that the ARV of 160-165 is accurate and I will be able to cash out refi and have no money into the deal but you are correct it will be a cash flow negative. Would it still be worth holding onto if I have no money into the deal?
Post: How to fix this BRRRR when my ARV is less than planned
- Posts 21
- Votes 2
@Drew Sygit: Thanks for the tip. Yes they did help me but I also have someone else that recommended me. I believe my ARV of 160-165k is accurate. With that I would get all my money back from the deal then probably break even or be slightly cash flow neg. Would it be worth keeping then if I would have no money in the deal?