All Forum Posts by: Dev Paul

I'm looking to buy a home in Northern Virginia or one of the better Maryland counties. Budget is max 425k, with a monthly mortgage payment, property taxes, insurance and HOA fees (if applicable) not exceeding 1800-2000 per month. Down payment 15-20%. Ideally looking for a new construction and in desirable/clean area for future rental potential. An extra room with separate entrance or a basement with bathroom will be really desirable. I believe SFH will be not possible in this budget, but perhaps a decent townhouse could work. I generally dont like condos for exorbitant HOA fees, but if there is a big condo with less than 250 hoa fees, i can consider that as well. Any suggestions on areas, towns, counties will be much appreciated. Any opinion or pointers on home construction companies such as Ryan homes, Miller and Smith etc?

Thanks John and Adam. Right now focusing only on Florida panhandle market. But perhaps second vacation rental will be in PS area. I actually visited PS 1.5 years ago and really liked the place and properties there. If it was not for the distance and super restrictive landscape (especially the part where local manager needs to be there 24/7), PS would have been my first choice to buy my first vacation rental.

Thanks Matt. I sent you a pm. Let me know if my numbers above make sense.

@Todd, ideally from what I understand, atleast a ROI around 10% on total investment (including mortgage amount) makes it worthwhile on short term rentals. So all the cash flow after all the expenses and taxes including interest paid on mortgage. For example, if i buy a property worth 400k with 80 k downpayment and 10k closing costs. Lets say mortgage with taxes and hoa per month is 3k, out of which atleast 500 dollars is going towards my principal payment, so i like to count it as 2.5 k net costs per month. Add another 800 dollars for monthly expenses, utilities etc. In the end, i need to net at least avg of 5-6k in rental revenue every month to have net profit of 30-35k yearly. From what i read here and other places, it seems few markets like these in florida, do net these kind of numbers for many people. Let me know your thoughts

Thanks Matt for the comparison. Also, it seems STR regulations are pretty relaxed in this market and there are no strict requirements to meet guests or getting some expensive permits from the city or some max number of reservations etc? I'm hoping to close something soon.

Thanks Mark and Matt. Mark, i had already been researching for a while and dont want to keep doing this analysis paralysis thing for ever. I think im fairly clear on towns i need to focus on after months of going over posts here and other articles i read. Its now just a question of finding the right property which makes most sense. Im hoping someone could offer insights on pros and cons of these three areas.

Thanks for your replies, guys. Since i have not yet decided that which of these 3 areas i should focus more, any striking differences among these 3 or any one you particularly like or avoid for whatever reason?

Second, Im not sure on mashvisor its easy to pinpoint which specific area each listing is from. But im still learning to navigate the tool and might reach out to them.

I recently purchased Mashvisor subscription to focus on few markets and to get some real insights. I'm not sure that the data there is fully accurate and accounts for bookings other than airbnb (VRBO, Individual bookings and monthly rentals during off season etc). For one, I compared the numbers with what @avery carl has in her blog. Her numbers are far more encouraging.

So, I was wondering if anyone here has used mashvisor before and what their thoughts are in using that tool in optimal way.

Second, I'm almost in final stages of taking a decision to buy either a 2-3 bedroom beachfront condo or affordable SFH or townhouse few blocks away from a beach in either of Destin, 30A or PCB. The airbnb numbers dont look much different than each other in all of these 3 markets. Yes, Destin surely has a little edge and my first choice too, but im equally open to other two as well. I'm in touch with few realtors in these areas, but wanted to run by with you guys your thoughts on the same. My max budget is 450k as I dont want to play too big in my first outing as an investor. Also, i mostly intend to manage myself remotely from here in East Coast. So, if you have to pick one area with my budget, which will be your first choice in terms of better ROI and long term appreciation and other factors. Also, I'm assuming that there are not much of short term rental regulations in either of these areas and that remote management is possible.

On a side note, while looking at Mashvisor numbers, Palm Springs, CA, seem to have some amazing numbers especially for properties with higher number of bedrooms. I had considered PS in the past, but extensive regulations and the far away factor has discouraged me. But, looking at the numbers there I wondered why its not still considered a good market.

Thanks for your advice and pointers as always!

Thanks people for your valuable comments. Karen, I will PM you.

Anyone having a short term rental in Vermont? Killington, Burlington, ludlow, Stowe etc? It seems one of those markets which is still not saturated and has solid potential with under 200k properties. Havent read much about strict regulations either. Clearly its not a year around market, but even with 6-8 month occupancy numbers should be decent.