All Forum Posts by: Spencer Gregory

Hi Spencer! One of the things to remember when you purchase an STR is that you are buying a small business and managing it will require a lot more time than managing a LTR.

Short term rental does seem very attractive and it's definitely a great way to generate cash flow and scale your portfolio but if you don't have experience in it, it will be a tough journey. 

Long term rentals on the other hand will ease you into the investing journey and then you can scale into buying STR. Feel free to reach out if you want to discuss out of state investing and working with turnkey companies.

I am 22, and I'm doing a STR househack with my first property. I thought that would be best in my area. Do your research! Best of luck!

STR house hack is the way to go if you're able to do it! That's how I got my start in real estate & I was able to cash flow ~$3k / month while living there. Like some folks mentioned, STRs are not fully passive when you start, but when you set up the right systems, you can make it basically passive.

Feel free to DM me if you wanna chat :) 

Hey @Spencer Gregory! 

When you are young you are able to take on more risk - use time to your advantage and figure out what's best for you! Experience will really pave the path in the direction you want to go. 

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Josh 

Buying a STR in a market that you do not live in will require quite a bit more work. The most important part would be studying the market and building connections within that market. LTR are more passive with less cash flow and you would be able to acquire them in your own market. If you do a STR correctly it definitely has the potential to build wealth faster than a LTR but there are a lot of variables with a STR that could expose you to more risk, mainly with investing in a market that you are not knowledgeable on.

@Spencer Gregory- What is your current expense of living?  If you are spending money on a living expense now, it would make sense for you to cut that down by finding a house hack property. 

Do you think that you would be able to manage having an out of state team? In terms of managing the people that would need to be taking care of your STR when you are not there? You will need to trust them significantly since you will not be there.

In terms of finances would you be purchasing the STR as a 20%- 25% down investment? Do you have funds to complete this purchase right now? If you do a low downpayment for a house hack LTR and have the funds to complete that currently, then maybe it makes sense for you to start there.

Have you researched potential markets for where you would want the STR? Many places are changing and making laws more strict. I would suggest in general looking at locations that have already assessed the STR business and put laws and regulations in place. Instead of finding a town where they have not put anything into place then later being surprised by what they decide to enforce.

Hey @Spencer Gregory! 

Kudos to you for getting started so early into the game! Regardless... Hope these answers to your questions help you have a more clear state of mind when making an educated decision on the route you want to take getting into this; 

1. STRs will only be passive if you have a management company managing everything for you. But, still won't be entirely passive as you will need to deal with HOA/Townships/Counties to make sure you are operating legally. Doesn't change often but you need to keep up on this type of info as if you are operating illegally your permit to operate can be revoked or you could potentially be fined.

2. House hacking is one of the best ways to get into real estate and build wealth over time. Of course, you are not going to be seeing the type of cash flow you would see on an STR but it is still an incredible start for anyone your age to own more than one unit and be renting them out on a medium-term to long-term basis. Also, not to mention you have more security going this route and more loan ability if you are acquiring more than four units at a time.

I hope this helps and if you would like to talk more please do not hesitate to reach out to me! Keep moving forward!

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Josh

Hi @Spencer Gregory, As someone who manages both LTR & STR I can tell you that the STR properties are a full-time job in and of themselves. With an STR you need a team of cleaners (and backup cleaners), a handyman (or three), landscapers, etc. Plus you have to constantly manage the bookings, extensions, and cancellations. It can be a headache some days, but the cash flow is much higher and overall worth it in my opinion. You could always buy a property, install LTR tenants, and change it over to STR when you have a more flexible work schedule. 

 Well some guru at some seminar made up this wholesaling word, now every Tom DIck and Harry is a wholesaler. Reality is 99% have no clue what they are doing. Many find something for sale, make up their own marketing sheet , mark it up , email blast it and call themselves a wholesaler,  its called flipping a contract, 

Good luck