All Forum Posts by: Elaina Burkhart

@Richard F. Thanks, that does make sense since I would be handling the property and money. 

@Chris Allen Thanks a lot for all of the info. That was so very informative and helpful in trying to make this decision. 

Hello, 

My husband and I started our journey in real estate investing a couple years ago. We have a LTR duplex and a STR lake house. I work part-time as a nurse and mama while my husband works fulltime. Both rentals are going well and I feel pretty comfortable managing them. I have an opportunity to manage a STR in a popular vacation area about 45min from our home. I am just wondering if this would be worth my time. I've read conflicting info about what a property manager charges from 10%-35%. What is a realistic percentage that I could ask for? The owner really wants to be as hands off as possible so it is a lot on me to manage, but I feel I can do it. We want to get into this popular area for our next STR so I thought managing one in the area would be beneficial. What are the downsides to managing for someone else? I know what goes into managing for ourselves, so I don't need a ton of input on that. I'm just trying to weigh the benefits and see if it's worth my time? Currently I just see the gaining experience aspect and getting paid for managing as the benefits. I also am not sure if I need any sort of licensure to manage for someone else? This is really more of a casual exchange between the owner and myself, but I would like to know if there is typically licensure requirements?

Thanks!

Hello all, we are looking to possibly purchase an STR in New Braunfels, TX. The numbers seem to work well in this area as I run them, but I'm a little concerned about the STR regulations. I have looked at their city website and it looks like they do not allow STRs in 60% of the area, they do allow STRs (with a Special Use Permit) in about 30% and then the remaining 10% are "allowed by right with permit" but don't require the Special Use Permit. Obviously it would be ideal to find a property within that 10% area that allows a basic permit because the website says the special use permit process can take 8-12 weeks with a public hearing. Has anyone had to get a SUP for their STR in this area? To think that we would be purchasing a property with the plan to rent it out, just to be denied the permit seems very risky, however I read that a lot of people invest in STRs in this area. I feel like maybe I'm missing something or may I'm being too intimidated by this SUP process because I'm not familiar with it. I understand that having set regulations in the STR world is not a bad thing, but I don't want to run the risk of being denied a permit. Thanks!!!

@Tim Herman yes we paid "cash" with the Heloc and LOC. The more I read the more it seems like this isn't going to be the best BRRRR for us just because we spent so much up front for the property. Even if we rehab it, I'm not sure that the market it is in would allow it to appraise for enough for us to make all or most of our money back in the end. Thanks for clarifying @Ash Hegde . @Andrew Postell yes I have been doing some more reading on making sure the lender is even willing to help out with an investment property and willing to offer a cash out refi. All very good tips and clarification. Thanks a lot!

Hello,

I have a couple questions regarding a refinance on a duplex my husband and I own. We purchased the duplex last year for $140k with a home equity loan (100k fixed rate) and a smaller HELOC (40k variable rate) on our primary residence. We are trying to BRRRR this (on a much slower scale at this point as we already have tenants and it cash flows about $400/mo- but thinking future plans).

So we thought we would force some appreciation on this through renovation in the future and then refinance. Since we don't have a typical conventional loan on it, can we still do this? Will banks offer us a 75% ARV cash out refinance? I feel like I'm missing a key aspect of the refinance part of it all.

We still owe $97K on the home equity loan and then have the $40K HELOC. We have the cash to do the renovation so we don't need another loan for that (the renovation would add up to around 30k). Our hope is that it would appraise for around 200K. We wanted to take the cash and pay off the HELOC then reinvest the rest. I know I have to make I get a true renovation cost nailed down and the ARV. Like I said, this is just a future goal so feeling it out right now.

I think I've got to be missing something here because my numbers seem way too good to be true. The main thing that's tripping me up is that we have an equity loan and HELOC on it currently, so idk what that does when you go to refinance something.

Thanks!!!

My husband and I are new to investing outside of our hometown (we just have one duplex in central Indiana) and we're interested in researching markets outside of our area (ok with out-of-state as well). I am unsure of how one researches important investing aspects of a market, like ones that are linear, have ongoing population growth, economic diversity, and so on. Do you simply google these questions or is there a better way of researching these statistics? I just want to save myself the time and rabbit holes if there is a more "to-the-point" strategy and/ or website with this info? 

Thanks, from the Hoosier State

These questions and answers were so very helpful to me as well! Thanks for posting and thanks to those who responded.