All Forum Posts by: David Klefeker

Hey Everyone, I am a local investor here in the Tampa Bay area. I run a private equity group along with a property management company. We have predominantly bought and sold multi family with 2-5 year holds. I am always looking to learn and partner with others in the business. We have a massive list of GC’s, subs, brokers, etc. I would like to leverage my contacts, access to capital and knowledge of the market to execute on flips. We are at the top of the market right now so its not shooting fish in a barrel like it was 4-5 years ago. However, I still see opportunity in the market as long as you are very diligent with your numbers amd run a tight project. I would like to partner with someone who has extensive experience flipping in this market. I bring extensive knowledge of renovations and market analysis. Looking forward to sharing in knowledge, experience and profits.

Hi Jennifer, I have worked with a group called All American. We just wrapped up a 40 unit apartment building renovation. A fairly decent sized project. The were very professional and stayed on budget which is rare. They delivered on budget and on time. Highly recommend. Aside from multi family investments I am also involved in flips on the funding and management side. Maybe an opportunity to do a JV on some projects. Please feel free to reach out if interested. Thanks David

I am so excited for Airbnb and the short term rental market in the upcoming year. There is still so much opportunity to invest in property that are perfect for Airbnb. However you have to make sure you do your home work before hand. 

Top 3 things anyone looking to Invest in Airbnb should do:

1. Know the Market. 

You have to do your research and know exactly what the average daily rate or ADR in hotel terms is for the area you are looking to invest in. This will help you value a property correctly and build a property budget for any renovations you need to do, decor and operational expenses. You must speak to other local operators and find out the general attitude towards Airbnb/Short term rentals in that market. Sometimes a community of well organized residents are able make it very difficult to operate in their neighborhood. In which case you wouldn't want to invest their anyway. At least not an Airbnb business. What the local municipalities general attitudes are towards Airbnb. Some markets the hotel lobby is incredibly strong and force certain municipalities to clamp down on Airbnb/short term rentals incredibly hard with very high fines. 

2. Host with the Most!

You have to have an amazing Host. A well located, well designed and decorated Airbnb will fall flat on its face if the host is lacking in any way. The competition has gotten really good, which is great for the overall image and experience of Airbnb but that also means you must have all stellar reviews along with Superhost status to really do well and reap the most from Airbnb. 

3. Operations and Systems

If your intending to really turn this into a 6 figure business and be able to scale then your going to have to make sure you have a solid team of vendors and systems in place because you are now playing in the hospitality game. Guests can be ruthless and all it takes is a few bad reviews to turn a unit from a $6k per month Airbnb to a $2k per month Airbnb. All those Investors who love Real Estate because its slow, steady and quiet....oh and "passive", then you either will need to build an incredible team/systems to operate for you or maybe just stick to the long term rentals. 

Hope this was of some use for anyone looking to invest into Airbnb/Shorterm rental property. There is still so much opportunity for anyone to get started. Just need to make sure, as with all investing to due your homework first so you can enjoy the best possible returns!

Hey All, 

I know this thread is over a year old, but I just wanted to add that we are managing over 40 short term/bnb's across Pinellas county and we have been able to tailer our operations for each municipality as each one is a bit different in how strict or lax they enforce the 30 day rule. We have also run our numbers and set ourselves up in such a way to be able to turn the short terms into long terms if something where to change over night.....

Also its very important to run stress tests of your operations/numbers so you can be prepared for the event of strict code enforcement or even a hurricane, which unlike long term rentals, short terms are very much effected by. 

If anyone is looking for a way to break into Airbnb here in the Tampa Bay Area or simply have questions on the viability of a certain area for Airbnb I would be more than happy to discuss that with anyone. 

As interest rates and cap rates get closer and closer to each other, we have to find ways to find value, and this is a great tool to do just that. 

I believe the more "professionals" we can have in this space the better because that will make it that much easier to have municipalities approve the continued use and growth of Airbnb. 

@Nabeel Kurji

That's great your interested in St Pete!

I'm an asset manager for a RE Group along with a Property Management company here in St Pete. We are very bullish on St Pete and Tampa Bay as a whole. 

We actually have a property right on Central and 22nd ave. 

The Airbnb/ short terms we have are also doing incredibly well. 

The area you are referring to is not a bad area but it isn't the greatest either. 

What is it that you are looking for? multi family? SFH? Office?

Would love to be of some assistance or at the very least pass along some good referrals for Contractors if you need them....

David

Ok so this thread has gone off the rails a bit.....lol

I actually agree with @Robert Gilstrap and @Account Closed. Two sides of the same coin in my opinion. 

I am an investor and have a PM company that manages my stuff and other investors properties. 

First to Meghan's point, no one ever takes better care of your property than you do.....ever!

Although to Robert's point, you will never have the economies of scale that a Property Management company has. So yes, they will always be able to do it cheaper, faster, better......Always!

The question you have to ask yourself is what is it worth to you.....

Is PM something you may have a skill set for. Its def not for every investor. Quit the opposite, most investors should NOT manage their own property but, if you have a skill set that is inline with what is needed as a PM, then by all means.

One other point is that when the PM comes to you and says they have to spend X because of some issue with the building, if you have managed your own property before you will be in a more informed position to give the go ahead for a Capital Expense. Because at the end of the day, just because you have a PM that manages your property, you still need to be able to manage the PM.......

Hope this helps......

Hey @Jason Snell, your already farther ahead than most! Good on ya!

Flipping is a pretty tricky biz, my first question would be what kind of flips? Single family homes? Multi family? etc.

 What is your goal you would like to achieve through flips? A certain dollar amount? A certain return on your cash/investment? Do you have project management experience? What kind of margins are you looking for?

Very important to have some sort of road map before a road trip so you can plot where your going so as to not get to lost.....;)

I agree with all the great info from Jerry, Valerie, and Brett.....Solid stuff for the financing aspect.....

What I would want you to do first is nail down some specific goals first. 

1. What is your 5 year goal. How much would you like to be cash flowing per month....

From this goal you can work backwards and set 1 year goals/tasks to help achieve that 5 year goal.

Set a 6 month goal that will help you achieve that 1 year goal. 1 month goal to achieve that 6 month goal. 1 week goal/task to help achieve that 1 month goal. And what is something you can do today and everyday this week to achieve that 1 week goal. It can be as easy as calling an agent in your area to find out what the local rents are for a 2 bedroom 1 bath house in your area or simply join a local REI Group....

This style of thinking will help keep you on track and focused without getting overwhelmed with all the new info your going to be absorbing. Real Estate is a huge network of many sub niches. So before diving into the deep end, have a plan/goal of what you'd like to achieve so as to guide you through it all. 

Hey Everyone! 

Super excited to finally be apart of an amazing network and community of passionate, hardworking folks. Really looking forward to connecting with other memebers and sharing all kinds of cool ideas, challenges and a few war stories from the trenches of Property Management! Lol.

Im a BRRRR guy to the bone.....

See you on the message boards, blogs and comment sections!

-David Klefeker