All Forum Posts by: Kit Serrell

Read David Greene's book Long Distance Real Estate Investing. Best source of knowledge to get your questions answered on this topic. 

I bought a property four states away and I have zero issues. Even if the property is a 10 minute drive from you, you shouldnt be doing anything different than you would if its 10 hours away. Example: if there is a clogged toilet at 10pm, you shouldnt be the one driving over there unclogging it yourself. You would call your local plumber or handyman to go fix it. 

#1 factor in easy long distance management (self managing OR outsourcing management) is good tenant screening!! Additionally, I only accept tenants who agree to do virtual walkthroughs & inspections and I only accept tenants who agree to online-only rent payments. I use the PM software Buildium and I really like it. 

Hi Brook! I own and manage short term rentals in NC. Id love to connect and help in anyway i can. Certainly happy to share my starting off tips. 

Id join a couple of the large Airbnb facebook groups as well. Those have been probably the single most helpful resource for me when needing guidance. 

I would avoid HOAs at all costs if possible. I have personally dealt with an HOA that was fine with STRs at first then things went downhill ... it was an actual nightmare.

Rules change, neighbors have someone to complain to, increasing assessments and dues can eat into cashflow, short term rental guests do not tend to follow community rules (parking violations, noise complaints, etc). 

Just something else to consider... even if a community doesn't have a formal HOA, they may have "restrictive covenants" that don't allow short term rentals OR could be interpreted to not allow short term rentals (i.e. "no bothersome activity can take place on the property", "no homestays" ). A lot of agents either don't know this or don't bother to check so make sure you are aware.

Hi Matt! (CPA here..)

I also have four properties and I would 100% hire a CPA...one that SPECIALIZES in real estate. I am a CPA but since I don't do real-estate specific work, I admittedly missed several tax breaks (very humbling) when I did a rough draft of my return this year so I reached out so a more specialized firm and they saved me literally thousands of dollars so it was worth every penny. PLUS! if you get audited (god forbid).. you will have a professional in your corner to assist and argue on your behalf. I like to think of it as an insurance policy. 

Point being, don't just find that one guy from college or your next door neighbor that is a CPA.. find someone who made real estate a focal point in their practice. 

I will say.. $3000 seems steep if you only have 4 rentals. You should be able to find a good CPA for 1250-2000. Dont let some of these firms try and upsell you on something you don't need. For example, many places will try and upsell people on things such as "year-round tax consulting". However, it is SUBSTANTIALLY cheaper to just pay their hourly rate once or twice a year if you need tax advice than to pay for some fancy package. 

Hi Jorge! Just messaged you. 

I have a list of everything I have in my Airbnbs (including cleaning products etc) , our house rules, listing description tips, check-in instructions, set up instructions, cleaning instructions (for cleaners), smart locks, guest screening, and how we adjust prices, etc that I am happy to share. 

Hi Nick - I am an investor in Raleigh and I am househacking by the room using Airbnb right now. 

I was in the exact same situation when I started off. However, I am making WAY more money than I would have househacking a multifamily property. If you are okay with having people in your "shared spaces" like living room and kitchen...it would be a good way to go. I make about $1500-1700 per room and I have a 4 bedroom house (so total rental income is around $4500) and my mortgage is only $1911. Its a cash cow. I have hosted over 400 people in the last 18 months and havent had any major issues with guests. 

I bought this house in March 2021 already renovated with an FHA loan so I only needed 3.5% down and had the house fully booked within 3 days after closing. I personally think for your first one you should avoid a major renovation. If it needs more than like paint and carpet, I dont buy it for a househack because I want to be able to rent right away and I dont want to live in a construction zone.

Happy to connect and answer any additional questions you may have!

Hi Ty - I am out of Raleigh and I am househacking this way. It has been an immense success. If you are looking out of Greenville you might consider Airbnb'ing the rooms instead (either short-term or mid-term) of renting by the room long-term. You would be in a good position to cater to travel nurses and students who just need a few months out of the year and are willing to pay much higher rents (in my experience.. nearly double) versus traditional long-term tenants in this scenario would. 

 I am not sure about Texas but I am confident they will continue to rise in the popular areas of NC (Raleigh, Durham, Chapel-Hill, Cary, Charlotte, Greensboro, etc) and the respective suburbs (Garner, Clayton, Concord, Winston-Salem, etc). There population growth is exploding and there is already a housing shortage which is pushing people into the suburbs which is making commute times longer and less desirable. In my opinion, housing prices in those metros will continue to increase even if we see a decline in other markets or other NC markets. 

I am young and prefer younger agents because they are on top of it and reply fast and dont take hours or days to get back to me and are normally not so stuck in their ways. For example, they seem more willing to ask a fellow agent or their BIC if they are unsure about something, an approach, issues, etc versus being overly sure of themselves (which I obviously appreciate). Just my two cents.

Id say it comes down to your client. If they are eager, mirror that energy...young and energetic. If they seem hesitant then you hit them with the "Although I am young, i am on top of the market, social media, trends, etc and lean on traditional and new approaches to help my client win." and play to that tune a bit and/or show them a few deals you've done and why you were instrumental in the deal.

Love this list! Going to add to it...

 1. Atomic Habits 2. The ONE Thing and 3. Never Split the Difference