All Forum Posts by: Melissa Nash

To clarify- if I am buying a property finished- (turnkey) at market value I can cashflow and average of 9-12% year 1 on a B class property and I am not at 1%, If i wanted to buy a finished property in a C/D class then I can get to 1% rule. But I personally value buying property in an area that appreciates more and has the potential for better tenants and rental increases, so I will easily give up the idea of the 1% rule, as I think future growth is much more important to me. 

 message me- happy to share! 

I personally didn't use a CPA until I owned 3 properties because that is when I needed advanced strategies, save your $ and use it to invest then find a CPA that knows enough to file for depreciation & interest . 

$90k ARV + free lot. The rents at $850-900 is about the 1% rule which is very good right now. I would have done the deal.

Esp with low interest and seller financing. I think you missed out. 

Unfortunately that is the risk with investment properties-- most things you can hedge risks, but the tenant is the variable that we can't control. A good PM is important to help hedge some of this risk, but you have to pay your mortgage whether the tenant pays or not. So a good savings/reserve account is very important. And if you get a high yield savings account or life insurance accounts even better so you earn a return while its sitting there for your rainy day. Best of luck! 

are you looking to do the work yourself and buy a distressed property? I bought a property last month and was totally turnkey, with a tenant over 10% cash on cash year 1. The same person I bought it from just sent me another that has some equity in it and some rehab needed when the tenant moves out. I don't know if it is still avail or not, message me if you want his info. He is a licensed realtor and has a PM company. Great guy.

I did the same as you, but took it a step further and put together a list of top 75 US cities (I did it because everyone kept asking me so I finally succumbed to the pressure LOL),  I included average market price for the area so that you can see where the returns might be. It is really hard to just throw out this info because there are a A LOT of variables like amenities, marketing strategies, architecture and design, photography, location, etc. 

BUT I think its a good starting point for research, but remember the variables come into play for overall success. 
For example: I have 2 cabins in the same area- one has a hot tub and one doesn't. The one with the hot tub makes more $ and is more booked. So that alone would skew any numbers on a chart.  

Also another thing that is interesting- when I put together my list, I found that one of the cities is a random city in Alabama that I already own a few long term rentals in and I could make 3X if I turned one of them into a short-term rental. I haven't done it yet bc I have good tenants, but it is interesting to see towns that are not your typical "vacation" area make the list. 

This is very frustrating. Why are the repairs so high? Who is doing the work, and is it warrantied? I would get quotes outside of your PM, you should be allowed this. Also the PM should NOT be sending out dispatch repairs like that- that is a big red flag. I would request a walk through with a handyman and see what is actually going on.

Did the PM do a walk through before tenants moved in? 

This is definitely a red flag and very unusual. If the tenants are causing the issues - they need to pay for those bills. You are only suppose to pay for items that are not caused by the tenants. Example: if they broke the curtain rod because they pulled too hard. That is on them, not you. But if the curtain rod was put in really cheaply and wrong- then you should pay for it. That is why initial walk throughs and inspections are very important. 

That is a great idea if you want to self manage. I would highly recommend the idea when you continue to grow to add a local PM, just so you can focus on growing the business so you can be an investor not a landlord. Being a landlord saves you $ in the beginning, but then costs you time later and time is money. So I would encourage a 1, 2, + year plan and map out where you want to be and set goals and include a future PM fee and see how you like that. Best of luck!  

 100% you can do it! I am a big fan of doing yourself. And it sounds like you are planning some ads or SEO too. that is great, most new investors in STRs think they can just list on Airbnb and set it and forget it and it will book.... and to be honest, it can be that easy in some markets-if you have crazy demand. But most have to compete and by driving traffic to your own booking site then you don't have to airbnb fees and your guests are willing to pay YOU more and not airbnb. So you boost your $$$. I do that on a couple of my properties and its a BIG difference, Its all about strategy and automations. What you have a plan and execute it ..... it can be passive. I spend less than 2 hrs a week on all 5 of my self managed properties if that... some weeks is like 30 minutes. Anyhow... you got this! and best of luck!