All Forum Posts by: Robert Finn

There are cities that offer downpayment assistance for first time home buyers. Of course these are owner occupied loans, so you'll need to speak to a REI lender and make sure the requirements of the loan are upheld. Over time, you may be able to transition into a new home and keep the existing home as a rental.

Great Post @Bryan Metz, I use these same metrics when I invest in new markets. What type of term rental are you focusing on? I seek out markets that have strong travel demand, medical, historic draw, military, etc. If you're going to short term route, check the cities STR regulations and realtors/pm's on occupancy, ADR, and startup/rehab costs. Best of luck on your REI venture, looking forward to hearing about your successes!

Welcome to BP and thank you for your service! 

In regards to your budget, is the 150-180k the pre approval amount for your purchase? Depending on the condition of the home, the startup costs will vary. In my market, we've seen start up costs range from 12k - 35k, this includes major repairs, furnishings, appliances etc. I'd also speak to a lender specializing in REI, on what loan products might work for you, your budget, and your goals. Plenty of great resources here on BP. A local REI realtor can also give you great insight on local regulations and successful negotiation strategies to lower your cash to close and overhead.

Best of luck! Looking forward to reading about your successes! 

The last two years COC returns have been through the roof, soaring north of 50% for quite a few investors. Now that we are seeing a cool down, we can expect to see a decline. I'm personally looking for 35% - 50% COC return.

I'd speak to local property managers who run STR's and get an idea of what the year round occupancy /ADR is for a like kind property. Depending on the costs you mentioned, local regulations, neighborhood sentiments (neighbors), repairs and other furnishing costs. If the margin is too similar to a long term rental, then I'd personally pass and find a more appealing market.

As mentioned above you don't need it, but it is good to have in my opinion. You can represent yourself on deals and gain commissions on the buy side and save on the sell. If you plan on making multiple purchases within a short period of time, then it does help to have access to MLS data and network within whatever brokerage you join.

@John-Charles Bautista 3/4 bedroom, 2/3 bathrooms, 1800+ sqft, and must have a pool. Preferably heated and or salt water. Location is also a factor of course :) 

How close are you in proximity to the rental? If you are within a certain distance you may be able to qualify for a conventional vacation home loan. Down payments could range between 10%-20% depending on the lender, but I'd be sure to talk with one who has experience in these products.

We have one in Marco Island Florida, love the southwest coast. Even during the summer "off season" months our rental is seeing demand. Very expensive market to buy now, but you there are still pool properties under 900k. 65% - 75% occupancy with an ADR of $330 is what we've seen for the last 3 years. I'm an OOS investor so relying on our local property management has been a pillar in guest satisfaction. If I provide the guest, the percentage charged by the PPM is 10%, so I always actively look to find the guest and build my Social proof. Best of luck on your purchase and venture!

Congrats @Keith Howes on making the jump into STR's. When analyzing the deal, take into account the flood and wind insurance for rentals. Also check out the restricted areas and subdivisions as well as the registration process. Best of luck and welcome to TX!

https://www.galvestonparkboard...

One of my STR's, in Marco Island Florida, are now potentially moving to a "registered" regulation. Starting out, research the areas that already have permitting and regulation already in place for STR's. Markets that have mid term and short term demand, but could also cash flow long term is my strategy in the current economy.