All Forum Posts by: Bob Mueller Jr.

@Julie McCoy @Luka Milicevic @Avery Carl On this topic of the owner occupied STR permit, does anyone know if there's an actual # of months you're supposed to live at the property? The Nashville.gov link doesn't say. I currently have a primary home in St. Pete, FL, but I have family in Nashville and would like to purchase a 2nd home there and STR it out when I'm in Florida. If I have to move my driver's license and primary residence to TN, I would be willing to do that and actually glad to do it. Auto insurance and everything is much cheaper in TN than FL anyway. I'm just concerned that if I'm only physically in the Nashville home maybe 3 or 4/12 months, would that be an issue?

@Kristin Arby Can you tell me roughly what price points you're targeting for your STR homes in Palm Harbor and Fort Lauderdale? Are they $200K homes? $400K homes? Roughly how much do you get for them per night? Just curious on your metrics.

An odd question, but what would a responsible RE investors consider to be a good % of the value (market price, not equity) of your primary residence compared to their total net worth? Example: For quick & easy math, let's say an investor has a net worth of $1 Million, should they be looking at primary residences worth $300K (30% of NW) $800K (80%) and so on. I know there's not a golden rule for this and it varies by a person's lifestyle, and life priorities, I'm just curious what % some of you are running at. And also what % you guys feel is tipping into excess where it will possibly inhibit other long-term investing goals of buying other properties, etc. For this example, lets assume the primary residence is not used for investment or cash flow at all (like STR) so it's a true Kiyosaki liability (take $$$ out of pocket), even if you own it free and clear....

This was in the Tampa/St. Pete area.  3BR 3Bath house with poo/hot tubl and good entertainment area in the back.  

I looked at this property today and it was a big disappointment.  It had several water leaks, a lot of deferred maintenance, and now it kind of makes sense why the guy is wanting to sell it.  To be honest, I'm surprised he's getting as many positive reviews on the property as he is with its current condition---people must be very forgiving on VRBO!  

I'm off this property for now, but will stay in touch with the seller in case he wishes to substantially reduce the price at some point and bail out. It probably needs $50K in updates/repairs so he's going to have to get aggressive on price if he wants out. For now, I am going to look at some other houses close to him and see if I can't just build up my own STR from scratch. Thanks to everyone for the quick input here, I plan to make my long-term strategy vacation rentals and will be back in touch with many of you at some point in time. Great answers!

Have found a STR property in Florida that has a good history on VRBO and AirBnb since late 2015 until now. Seller has provided me with booking/revenue numbers going back to 2016, and is claiming the property was booked 316-324/365 days in 2016/2017. He is showing 283/365 so far in 2018. These occupancy numbers seem extremely high to me, but I have verified the property is pretty booked up on VRBO so maybe it's true. The cost of the house would be $500-600K to obtain, so it's not cheap. His numbers claim a NOI of $53,734 before any debt service, with a $500 monthly cleaning fee (average) and self managed. Or I get an NOI of $40,954 if I input 20% for property management. For both those calculations, I put 5% towards budgeted repairs and 3% to CapEx. With the 20% management and NOI of $40,954, I am still getting roughly $1,100/month positive cash flow, 10.14% COC return, assuming a $575K sale price and 20% down ($115K). Is this a risky deal? If I take away the 20% PM, the numbers jump to $2,150 monthly cash flow and 20.13% COC ROI.

A lot of numbers to digest here, but can any of you STR veterans help me out? @Luke Carl ? Is anything jumping out to you?  They rent the property for around $350/night average.  I think my biggest worry is if the extreme high occupancy drops for whatever reason, then this property comes into trouble pretty quick...  This would be my first vacation property.