All Forum Posts by: Robin Simon

are the property texas eating into your cash flow? how do you invest in texas knowing that property taxes are high and out of control? 

Looking at a STR to make first real estate deal on. Can anyone tell me why a lender might discourage 10% down on a vacation rental? I understand it's possible that interest rates would be higher than putting down 20%, but would there be any disadvantages of putting only 10% down on a vacation rental other than interest rate? Especially if I am trying to minimize out of pocket funds to begin investing. Thanks for any advice.

Hello everyone,

I am new to this forum and I am excited to learn from you all and contribute when I can. I am a real estate broker and just starting my journey with short term vacation rentals. I own three rental properties in different parts of the country but I am new to short term. 

For those seasoned short-term investors, what was the best piece of advice you received when you first started? What's the best software to manage the schedules and cleaning appmts? I think the logistics of it are daunting. 

Any advice would be appreciated.

Hey @Robin Simon. Are you sure it is legal? I have read the rules about STR in Denver and you can only do it if the owner lives at the property as a primary residence unless you get the lodging facility license. Seeing as you have a 2/2 it doesn't qualify as it needs to be 4 bedrooms or more.

I know that you are from Texas so I was just wondering if you were aware of the issues. 

1. Start with BiggerPockets Ultimate Beginners Guide (free). It will familiarize you with the basic terminology and benefits. Then you can read a more in-depth book like The Book On Rental Property Investing by Brandon Turner or The Unofficial Guide to Real Estate Investing by Spencer Strauss.

2. Get your finances in order. Get rid of debt, build a budget, and save. The idea that you can build wealth without putting any money into it is a recipe for disaster and the sales pitch of gurus trying to steal your money. A wise investor will not try to get rich quick with shortcuts. If you can't keep control of your personal finances, you are highly unlikely to succeed in real estate investing. Check out my personal favorite, Set For Life by Scott Trench , or The Total Money Makeover by Dave Ramsey.

3. As you read these books, watch the BiggerPockets podcasts. This will clarify and reinforce what you are reading. You can hear real-world examples of how others have built their investment portfolio and (hopefully) learn to avoid their mistakes.

4. Now you need to figure out how to find deals and pay for them. Again, the BiggerPockets store has some books for this or you can learn by watching podcasts, reading blogs, and interacting on the forum. There is a handy search bar in the upper right that makes it easy to find previous discussions, blogs, podcasts, and other resources. BiggerPockets also has a calculator you can use to analyze deals and I highly recommend you start this as soon as possible, even if you are not ready to buy. If you consistently analyze properties, it will be much easier to recognize a good deal when it shows up. Find Brandon's videos on YouTube for the "four square" method of analyzing homes and practice. It doesn't take long to learn how to spot a good deal.

5. Study the market. You can learn to do this on your own or get a rockstar REALTOR to lead the way. I highly recommend a well-qualified REALTOR that works with investors and knows how to best help you.

6. Jump in! Far too many get stuck in the "paralysis by analysis" stage, thinking they just don't know enough to get started. The truth is, you could read 100 books and still not know enough because certain things need to be learned through trial-and-error. You don't need to know everything to get started; you just need a foundation to build on and the rest will come through experience and then refining your education.

You can build a basic understanding of investing in 3-6 months. How long it takes to be financially ready is different for everyone. Once you're ready, create a goal (e.g. "I will buy at least one single-family home, duplex, triplex, or fourplex before the end of 2019") and then do it. Real estate investing is a pretty forgiving world and the average person can still make money even with some pretty big mistakes.