All Forum Posts by: Peter Jetson

@Jon Crosby good point about the 2 weeks limit! And the challenge is to foresee which STR markets ARE stable for the long term. Regulation is changing fast in many places, and generally not in favor of STR landlords! And your point about running a hybrid strategy makes sense. I know @Julie McCoy is the voice of reason. Hence using the words "dream" and "fantasy" in my post...:)

@William Leahy Yes that's exactly the way I envisage it. It would not be too smart to block out the most lucrative weeks. I am not yet retired but during retirement, I presume that going anywhere anytime is better than staying at home :)

 Is that because of the nature and location of your investments? 

 Yes well that's exactly the dilemna. Not mixing investment and pleasure is the logical way to think about it. The option to reside in your rentals is costly and complicated. For one, it gets you into A or B+ areas with lower return, and forces you to rent furnished. But I wonder if some people have found a smart way to make it work?

Yes for periods of a week to 3 months depending on occupancy. Retired = flexible.

I'd like to know if anyone on the forum has realized my dream: Own multiple properties in desirable locations and spend time during the year rotating between various properties (potentially internationally as well) during vacancy times. Which locations? Which types of properties? Student rentals? Monthly furnished for snowbirds? Corporate/nurses monthly rentals?  AirBnB/VRBO short term rentals? Property management headaches? Use of channel managers? Please let me know if my dream is just a fantasy?!

Well this discussion is also teaching me that there are Ferrari investors (high performance, high octane, at ease with complexity), Toyota investors (middle of the road, looking for deals but not extreme) and Volvo investors (safety first, performance second although welcome) in this community. Reading through lots of forums, I was feeling a little lonely in my half Toyota half Volvo ride :). Was considering  a stop by Autozone to buy some cool looking accessories if you follow me on the analogy. This is teaching me that I just need to sharpen my driving skills whatever car I'm in. 

😁 P. 

You guys rock! This thread goes a long way towards showing how BP's community can be an incredible asset to someone starting in RE, whatever age and resource! Hearing your opinions and advice takes me out of my uninformed isolation. Conclusion so far: Definitely consider delayed financing exception, consider lease options, 4.4% before tax is not enough, need to use the cash purchase to get a bargain deal, need to consider different sizes of houses, above all, need to try harder to get a better deal! 

I think the RE game is quite different when you start early in life cash poor and time rich, or later the other way around. But some of the advice above works in both cases. When preparing retirement, you want cash to replace salary, preservation for next generation(s), and tax optimisation. Using some properties as landing points for change during vacancies is a bonus. 

@steve vaughan do you get a break on rehab on these deals?

Let me add some numbers to make this deal more real. Thanks all for the advice and Brent for the reference to the Delayed Financing Exception. My CPA said I had 6 months to get a loan and get the tax benefits. I am looking an SFH at $240k purchase price, plus closing and some rehab, call it $250k. I can rent at $1,500/month. So, far from the 1% rule, but it's a desirable and somewhat resilient neighbourhood in AZ. My net cashflow would be circa $920/month without financing. 4.4% return on investment. Perhaps I should stop there and move on. If I finance, borrowing anything more than $146k puts me in negative cashflow territory. So nothing as good as buying 5 of these with leverage Brent! What do you think? No loan means $4,100 taxable and financing brings that down to $1,700 taxable but zero cashflow. What do you guys think?