All Forum Posts by: Melissa Nash

King! always a king when you can. 

That I need to remove the leaves from the outside furniture before they arrive... in the forest in the fall. :)

Or complaining about leaves in the pool....  I think guests think I have a pool tech on standby to fetch every leaf every hour. 

I have to say that I LOVE hosting- I thought I would hate it, it does have it's ups and downs with guests- but I do love providing a beautiful home for families to create beautiful memories. 

Do you want to be passive or active/ STR's self management is active and has a LOT Of tax benefits. Are you looking for tax benefits? Do you want to use the properties yourself??

I personally diversify- I have 5 STR"s that give me good cashflow but even better tax benefits and long term wealth. ANd then I have turnkey done-for-you long term rentals in high cashflowing markets that are very passive.

Amazing! My markets are HOT- bookings very high in my cabins!

I get that this is probably a post to engage in conversations.... but I will play this game. Its only dead if you are looking in the wrong markets. I am not sure what you talking about. I can cashflow great at an 8% loan, banks are still lending..... you just need the right bank. And appreciation has NOT slowed down and flattened all markets. 

You are being very broad- each market is it's own market- and you can't categorize this broadly. For example We know historically areas like Memphis, Birm, Little Rock only appreciate 3-4% a year but areas like SW FL are about 8-10%. In the last few years they grew much higher, but you need to look at the historical numbers not the last few years. Did you know that Atlanta was one of the first markets to crash in 2009? And the smaller areas in the south didn't take a dive for a few years later?  

You can't assume all markets are the same. Plenty of opportunity out there- you just have to know what you are looking for and what strategies/expectations are set. 

This is the BEST STR loophole. I did a cost seg about $1500 cost and got a $300k depreciation from 1 property! Do you have a good CPA to advise you on how it can work for you? You need to be ACTIVELY managing the property to qualify.

Rule of thumb! As many appliances as possible the tenant brings. Also remove garbage disposals and dishwashers when you can. I try to only provide a stove. If they break... who gets the bill? If the tenant owns it, they do. Now this is for certain areas, ask your PM what you can get away with NOT providing. 

Welcome! I highly recommend HELOC, then you can use it as a line of credit and pay it back and use it again over and over. Wait to refi if rates drop, you most likely have a great rate now. Luckily its all about the math, and you can run both options. I personally invest and work with Turnkey companies because its easy and less risk and I don't have to do anything but get the $. I have also personally flipped over 50 properties and its A LOT of work and I also lost a lot of money bc I was doing it out of state and hard to admit but I did get taken advantage of not being on the ground. I would not do that again unless I was local or could visit a lot- but that is active investing. And I personally prefer being a passive investor. Its easy, doesn't create a 2nd job and I never have to get on a plane. :)

yes--- 100% turnkey to get your feet wet and get used to investing out of state. There are some good players and some bad ones in this field and the term is thrown around a lot "turnkey" and they all don't mean the same thing. I personally buy and work with a large turnkey company. And its awesome- bc its all aspects of turnkey- not just the rehab which is what most people are thinking. It also means the process with everything baked in. You should NEVER pay over market value for a turnkey and unfortunately there are a few out there that do this and tell you its ok and that is a problem. Its a really really easy way to invest with less risk. happy to fill you in more. 

I have 2 different proforma's that I use. The first one is just the basics of the property to see if I want to continue or not with the property. It just includes estimated expenses and income. If the math passes. Then I use my 2nd proforma that looks at the investment in the long run....appreciation, equity paydown, tax benefits, etc etc. 
So then I can use that info to make an informed decision based on my strategy and each of my properties have different strategies. 

For example: One of my STR's barely cashflows at the end of the year- its a break even for me. But I knew that when I bought it. I didn't expect it to cashflow much and I am ok with that and the reason is because of appreciation. (and I get to use the property whenever I want) This property has appreciated so fast that I was able to refi and take out $ and buy another STR that does cashflow high. So, that benefited me so that my portfolio is valued higher and another property that I didn't have to save up for. 

So STRs or any investment property for that matter... can have strategies more than just the cashflow. 

Also... I got a $300k tax deduction for it on my taxes a few years ago bc I did a cost seg. So, that property has a BIG value in portfolio that has nothing to do with just cashflow. 

So, defining your strategy for each property is very important!     Best of luck! Melissa