All Forum Posts by: Paul Pratt

Hey everyone,

I figured I would share some info on mid-term rentals in my area, and help you build a strategy in case it's something you've been considering. So one of my contacts is a successful airbnb operator in the area (over 10 properties) and he actually made a mistake in buying a property without realizing it wasn't zoned correctly. However, it was sort of a blessing in disguise. He applied the same strategies in regards to renovations and furnishings. For a 3/2 SFR home on beachside, he was grossing $5800 a month on average compared to a long term rent rate of $2600. His clientele made up mostly of snowbirds and people displaced from their condos from storms. THE 2 KEYS are this, 1. Have a solid renovation budget and 2. Make sure you furnish everything as if it is a STR!

Hope this helps, how well you prep your property will reflect in the rates. If you do the bare minimum, expect nothing more.

It will take a while to make that passively. After operating expenses and insurance, (unless you have a STR scenario) you will be surprised how little you will cash-flow in this market out of the gate. That being said, make the right long term moves and one day it will flow well. Just be patient and don't try to squeeze too much out of a property on the first go.

Are you sure it could rent out for $4,800 a month? Make sure you are certain your numbers are correct, verify your sources first because that could be off. 

BUT if it's correct and theres no crazy flood insurance then I would absolutely keep it and rent it out. Unless you have other investing projects you want to use the cash for.

 @Ryan Martin I work local in the area, shoot me a message. It depends on the exact location. But, in short, no you do not need to be on the beach to have solid numbers.

Congrats on that, a ton of homes in that area are zoned multifamily which is a huge plus. Helping an investor in that area now. Ton of potential to transform that neighborhood. 

"What are some of the best cities to invest in now with properties not requiring significant improvements that can provide decent positive cash flow, but not in terrible neighborhoods?"

This question gets asked a lot. They are RARE. If they weren't everyone you knew would be a real estate investor. Chances are if you find a great house with no work needed it will not cash flow after your debt servicing. Just keeping it real, but unless someone (seller) has no idea of the current market you will need to put in some serious work/research. OR hope rates fall and you re-finance and play the appreciation game. But out of the gate cash flow with minimal improvements would be as rare as they come.

Shoot me a message I can send you a few contacts!

Hey Louis,

That area is my specialty. Would love to give you any info you need!

If you can swing it, in the backyard/porch have a mini putting green. My friend here in Florida has one and people love it. Fun activity to do on vacation. If you really want the master experience have an actual landscaping company come do it for real.

Hey Ben,

Not sure about any current meetups, but I'm a Realtor based here helping people with investments properties and primary residences. Would be happy to connect and help you with any questions you have about the market!