All Forum Posts by: Kenny Smith

100%! I think you are spot on. Here in my market of Denver, the STR laws have become very strict in certain municipalities. You need to know what pockets you can exploit and take advantage. Local knowledge is critical right now.

Sorry, should have been more specific.  So at least in our market (Denver), we are considered the #5 destination for traveling nurses according to furnish finder stats.  I guess this is more market specific, but we've done well with them over the last couple of years.

But, definitely good insight for future trends!  Thanks for sharing.

Hello BP Community!

I would love to get some thoughts on where you think the STR market is headed as a whole. I have a few myself, but are considering to move some of them to MTR's to cater to the ever growing travel nursing market, and more importantly, be a little more hands off with our investments.

Do you feel the market is going to get oversaturated with STR's? Are the "golden years" for STR's behind us? OR, do you see more and more consumers catching on and the demand continues to increase? Do hotels go the way of the cabbies when Uber came into the picture?

Looking forward to your responses!

@Nick Mazziotti

Just keep in mind if you do pull out the equity, most lenders will only lend on 75% of the equity you have in the property.  This will vary be lender, but just be aware of that and shop around.

Also, as of now, I like the HELOC route, because I don't have to pull all the money out at one time. With a line of credit you can draw as much as you need at anyone time for whatever you're approved for. Vs a cash out refi, you have to take all the money out at one time and then you are paying interest on that amount even if you aren't using all of the cash right away.

I'd speak with some lenders and credit unions and weigh your options.  Also, try to figure out how much money you are going to need for your next deal.  That will be a good starting point.

Best of luck!

@Ed Johnson

Welcome to BiggerPockets! You have hit the JACKPOT of resources for real estate investors. You can literally find answers to all of your questions within the confines of this site. What’s the best way to get started using BiggerPockets?

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Good Luck,

Kenny

@Bob Foglia

I'd also recommend just getting it done for peace of mind.  If you rented out your unit without one, and god forbid someone got injured or worst in a fire, you'd most likely be held liable.

@Gregg Camp

You're thinking the right way for sure.  For a 5 bed, 3 bath house, it may be difficult to get random travel nurses to all share a 5 bedroom place.  I personally have never done it, so I'm not saying it can't be done, but may have to vacancy issues.  What I'd recommend is checking out furnishedfinder.com.  This site is the primary website that travel nurses use to find MTR's.  Check out the map and see what other properties are being listed for.

Personally, I think a larger home with 5 beds, is set up perfectly for a rent by the room strategy.

If you do want to look at an STR option, check out AirDNA.com. They can give you some stats on your area as well for STR's. Also, check out the airbnb map for your area to see what your competition would be and what people are charging.

Best of luck!

@Rachel Perl

If it won't sell, I'd looking at other options for 6-9 months until the busier spring/summer selling season.  I know St Pete is an excellent travel destination.  Take a look at maybe turning it into an airbnb or medium term rental for the short term.  Yes, it is a lot of work, but is it better to keep lowering the price and lose more money, or wait until prices can bounce back and try again.

I don't know your financial situation on it, but take a look at the numbers, and ask some local investors on what their opinion of it is regarding rental returns.  If you are in a hard money loan, it may limit this option, but you could always refinance into a conventional loan for the time being.

Best of luck!

@Account Closed

Nice work! That is a massive ROI..Does your interest only loan have a balloon payment at the end of the term? If so, are you planning on refinancing into a conventional mortgage when rates drop?

Best of luck.

@Mary Frazier

Congratulations! I like you, have the same feeling about STR's! They can be a lot of work sometimes, but the payoff is so rewarding. Huge upside if you do it the right way, and don't cut any corners with your home or your guests.

Best of luck.