All Forum Posts by: Michael Bowie

@Victor Jernigan Hate that I missed that. Was there any consensus on whether LLCs are still the way to go or if S-corps are now the preferred entity?

@Cosmo Iannopollo Start with researching the regulation in your city and state. The city law directors, planning group, BP, and local Facebook groups are great sources to start with. 

FYI - There’s actually some great advice and content on a few previous posts from people who recently asked this same question! :) You may also find those threads helpful. 

Mike Williams Oh and one more thing! You mentioned needing connections, right? So, I’ve LOVED the tips David Greene has in his new book, “Long Distance Real Estate Investing.” He advises to start with finding a great Lender, who will know the best Agent, who will know the best PM, who will know the best Contractor. Phenomenal networking strategy... plus, what lender doesn’t want to talk to a guy with $100k in cash? :) now, you’ve got the ball rolling on all the connections you’ll need.

@Dustin Hood Yes. See my original post further up. 

My rule of thumb is to gross 20%+ of the purchase price and profit 10%+. If I can’t do that, I keep looking. 

Andrew Johnson See my above post.

If you’re willing to leverage the $100 into $500, I’m surprised that people are making it sound impossible to generate $48. Profiting 10% on a STR or VR is not that hard to find.

@Paul Sandhu. Nice. Talk about a great marketing channel baked into your job.

While I'm impressed with your rodent hunting skills and professional accounting system, I'm not sure if the bulletin board helps edify your recommendation for self-management, i.e you have a lot of time on your hands. :)

@Paul Sandhu I've been meaning to ask.. do you have 22 rooms or 22 houses?

@Paul Sandhu Do you have a 40 hr "part time" job outside of your rental properties?

@Ryan Smith You're right. It definitely depends. 

So, I've been back and forth on management. Also, something that I have seen here on BP, and something that I wish I had done is: Automate before you delegate. There are some amazing automation tools, especially for STR, like Smartbnb. I would highly recommend putting your listing on Smartbnb first and go from there. They can automate messaging (even questions!), check-ins, check-outs, cleaner coordination, reviews, guest vetting, and more... However, there is usually 10% of human interaction that is needed.

Personally, I believe managers are asking way too much to manage STRs. With platforms like Airbnb, VRBO, Homeaway and the automation software like Smartbnb there is NO reason to pay a manager more than 20% IMO. Gone are the days of paying a manager 40% because they have their own website they market where all the leads come from. Nowadays, I think 10-15% is more fair. Your ability to negotiate this with a quality manager depends on how many properties you have and how much money you're bringing in.