All Forum Posts by: Noah Laker

Hey Milind, I'm a local broker, investor, and property manager (100+ STR/Airbnb properties in addition to LTR).

We offer mortgages through our subsidiary company, wholesale to over 100 banks and institutions. From my experience, most lenders are offering the same APR's. The real difference between lenders is gonna be origination costs / fees, which can amount to thousands or even 10s of thousands in closing costs, depending on the size of the loan. We cut out the middlemen to get these as low as possible, so be sure to use a wholesale lender rather than a more salesy loan officer.

Some newer investors try to use hard money or more creative solutions. This will result in much higher costs up front, higher interest rates, and ultimately an expensive refinance down the line. 

Good on you for saving up a substantial down payment so you don't have to go down that road. 

By the way, what kind of property are you looking to purchase? STR? Multifamily? Here in Sac or elsewhere?

What's up Ronnie, I'm a local broker, investor, and PM. Every property has a unique story. In many cases like this, it will either be one of two things:

1) Lifestyle change. The owner is going through a move, or a divorce, or some other life-altering decision, and needs to offload the property.

2) Flippers. Some savvy investors will buy a multifamily property in rough condition, fix it up, and rent it out so that the end buyer (you) has a turnkey experience. This can enhance the property value for a fast sale, so they can pull their capital back out to do it again.

As always, best thing to do is ask, but also be skeptical and perform your own due diligence. I buy and help people buy multifamily all the time and you really wanna be thorough during inspections. Don't forget to ask for tenant estoppel certificates as well as tenant ledgers!

I vote Hospitable ALL THE WAY. My bias comes from experience with Guesty, OwnerRez, etc, where the platforms are more expensive, less intuitive, and ultimately less useful. 

Hospitable gives you all the right features for a very fair price, and not much frill. I would only ever recommend Guesty if you're a large PM using Trust Accounting methodology. 

For Task Management, if you don't like Hospitable's built-in tool, keep a simple log in Google Sheets with formatting variables -- for example, Air Filters haven't been changed in 3 months? Flash red. 

There are so many ways to configure your tech stack but I value simplicity and efficacy. 

Hey Johnson, thanks for the question. MTR occupancy totally depends on location, property size & quality, and other factors. Some properties have an impressive 90%+ occupancy while others will experience long "orphan" periods between bookings. Ideally, you blend STR with your MTR strategy to fill the gaps. I NEVER recommend buying a property exclusively for midterm rental, but rather underwrite for LTR if there is a municipal or HOA restriction on STR rental.

MTR is usually between LTR and STR -- again, this varies regionally. For example, if the going LTR rate in an area for your unit is $2000, and STR might be $3500, then MTR is probably around $2800. It's the basic economics of the benefits of the product. Furniture adds a premium, as does short-term rentability. If you have both, you make the most money. If you have only one, you make more than LTR, but not as much as selling both products.

MTR is still pretty good, but (sorry for repeating myself) it varies regionally. Urban cores seem to be doing well for MTR because of business and medical demand, as well as family relocations etc.

This last question is a tough one. High CAP rate usually comes at the cost of quality class. So C-class areas cashflow more than A-class, but there is an obvious tradeoff here. You should consider your longterm goals when structuring a portfolio (more appreciation at the expense of immediate cashflow? Or do you need cash now at the expense of future appreciation and possible renter quality issues?)

Hope this helps. Feel free to reach out directly for more discussion on these complex issues. 

ٱلسَّلَامُ عَلَيْكُمْ Ahamed, I'm a real estate broker and investor here in Sacramento. 

We manage over 100 properties -- mostly STR (Airbnb) -- For STR, invest in Sacramento city. For LTR / traditional rentals, Roseville, Rocklin, and Folsom are great areas with many A-class assets to choose from.

It depends on if your priority is immediate cashflow or longterm appreciation / tax benefits. 

Hope this helps!

Hey Tom, Airbnb may penalize you for cancelling on your end, and it is considered to be a dishonorable practice. However, if you negotiate directly with the guest and pay them something extra for the inconvenience, it’s ultimately their decision. If the guests do not wish to cancel, it might be best to honor their reservation and lose the two week. 

Most of our properties are in Arizona, which is very seasonal  Q1 is peak and summer is the lowest  

Hey Lynn, I'm a broker and manage over 100 STR properties, here in Sacramento as well as Arizona. If you want to list it as a short term rental, I can give you some pointers. :)

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