All Forum Posts by: Sarah Kensinger

It's hard to get pre-approved for a 10% down if you're a new investor with no other properties. Many laws have changed since Avery's book was published, that have made it difficult to purchase another property besides your personal residence. If you're a brand-new investor with only a personal residence with only 10% down and would like to purchase property sooner rather than later; creative financing may be an option for you. 

Here is a group you can check into for VA's....STR Secrets VA

We haven't used them, but we're part of the Mastermind the case study was done in. I've heard so so many good things about the VA's!

People do it all the time, you just need to be in the right rooms. I don't hear about friends/family going in together very often, due to the concern of damaging relationships. Especially since clear lines are not written out of expectations and instead people just go of trust since it's friends/family. But business partners join up all the time, along with a clear contract.

Of course, this is an excellent way to park some cash on hand. A little head up though...Destin and PCB is VERY competitive, far more so than most national park markets. There's actually only a handful of national park markets that are competitive. I'll be honest that it's hard to find a really good cash flowing property in the Destin/PCB area. I know this firsthand on personal research we've be doing there for the last year. But if you're fine with a break even or just small cash flow and take the appreciation, it would be an excellent area. Although condos are not nice for first time vacation homeowners, so try to steer clear of those. Something else I know from experience ;) Seriously, if you want to chat about the area from an investor point of view, feel free to reach out! And if you need a realtor, I know one of the best in the area that can help you find a property in Destin. 

Try checking out the VA service that Micheal Sjogren has now made public.... STR Secrets VA

At this time, we don't use them but many in our mastermind do and of course that's where Micheal made his case study. I've heard many many good things about this overseas company, and in your case, I know some STR hosts share a VA. I'm not sure if they could help you find another host to join up with a VA on or if that's something you would need to do, but it doesn't hurt to ask.

You have a number of good ideas already, but don't eat the cost of your cleaning, or even part of it! Either bake it into the daily rate or just price it comparable to other STR in your area. You'll be surprised at how many people well pay more to stay in a clean home. Which is hard to find! I've stayed in 37 STR over the last 6.5 years and I can count on one hand how many where actually clean clean!

I had to have laugh at this comment because it's one owners tell STR companies all the time. "It can't be that dirty or take that much time, because my personal residence it only $-- to clean."
It actually is a whole lot more work since guests know they don't have to deal with the repercussions of leaving a mess, and many times they sure leave one! Not to mention changing all the beds and making sure the property is literally a showroom for the next guest. STR cleaners are the backbone of the industry and too often they walk into a mess that is uncalled for; a cleaning job most people wouldn't do. It's why if a good cleaner is found you hang on to them for everything and treat them like gold!  

Biggest operational challenge known to the STR host...cleaners, cleaners, cleaners.

Don't be surprised if you go through a handful before you find on that meets your expectations and one you can trust. 

I heard a detailed podcast with Michael and Elizabeth Chang (well-known arbitrage operators and mentors) and they explained how to analyze an arbitrage deal very well. I made note of it in case it ever came in handy but have never personally done an arbitrage unit.

So, when it comes to expenses and profit you would run numbers the same as any other STR property that would have a mortgage on. But when it comes to investment you would need to be sure to get everything back within 6 months. For example, add up furnishing and deposit, all other expenses would be the same as a home you own. Then find out what the projected revenue would be for 6 months. If the total amount for furnishing/deposit is not completely returned within those 6 months, it would not be an ideal property to use for STR Arbitrage.

First 6 months=repay for furnishings/deposit.

Last 6 months and beyond=full on profit after expenses. 

Your "equity" is taking that profit to go buy an investment property. And if you can take the first 6 months reimbursement to go set up another property and run through the scenario again, you can purchase an investment property faster. 

And this is how anyone can change their family's generational wealth!

If you use Proper Insurance you don't need any other coverage, especially if you get their max liability coverage. If you would like to learn more about liability, check into Anderson Business Advisors and Clint Coons YouTube page, you'll find all the info to answer any questions!