All Forum Posts by: Travis Andres

Curious to know what everyone's thoughts are on what the best markets are to try to find a BRRRR property that will appreciate quickest.

Hoping to be able to MTR after rehab to get at least some cashflow. 

Thoughts?

Thanks!

Quote from @Nicholas L.:

@Travis Andres

are you working with an agent?  is this off market or on?

there are multiple contingences in standard contracts - appraisal, financing, inspection, etc.

you want to be sure to include the ones you need

Sorry, more specifically I meant the inspection contingency, and if there’s any special language needed, since the property is in distress, but the photos look like it might not be that bad, just in case it’s worse than what it seems

Quote from @Nicholas L.:

@Travis Andres

are you working with an agent?  is this off market or on?

there are multiple contingences in standard contracts - appraisal, financing, inspection, etc.

you want to be sure to include the ones you need

Off market, no agent

Just about to start out with our first investment and may have found a property to BRRRR, but want to make sure that it's in good enough condition for what we are looking to do.

I know I’m supposed to add some sort of contingency in the offer that will enable us to adjust/back out of the deal if we see something really wrong with the property, just not sure how and what language to include. 

Any help would be greatly appreciated!

Quote from @Sarah Kensinger:

Check out mid-term rental! It's a little better in cash flow then a LTR and appeases the city. 

Yeah, good idea but I’m sure every single existing STR investor is looking to already switch which will over-saturate the MTR demand. 

I was just more curious if the existing owners are ignoring the ban or what

I know I'm late to the dance, but just found out about the STR ban in the DFW area, but I still see a TON of listings on AirBnB…

Is anyone on here still doing STR in those areas? If so, is it just a gamble in hoping you don't get caught? Or are they not enforcing it?

Was about to pull the trigger on starting an STR there but now looks like we'll be settling for LTR with Pennie's of cash flow.

Hey Beth, super curious to know how this project came out.
were you able to get it rented as a STR? How is it cashflowing? And we're you able to refi to get your money back out?

If so, can you please share about financing? Were you able to find a lender to do a DSCR loan based on the Airbnb income?

We are looking to get started, and these strategies seem to be the way will need to go. Any insight would be greatly appreciated.

thanks!

Hey Kevin, curious to know how this turned out? We’re you able to find a lender to check all the boxes?

I’m just about to get started and will need similar financing so any feedback would be awesome. 
thanks!

Quote from @Andrew Postell:

@Travis Andres thanks so much! For me, I have not been personally involved in STR as of yet. The main reason - it's more money out of pocket. I have to furnish the property. That takes away money for me to buy more homes. Now, I see the same tik tock/youtube videos you do...insane profit from Short Term Rentals...but the properties I have seen the real numbers on haven't quite made it realistic for me.

The secondary reason - this is not a "tried and true" technique yet. Meaning, the STR method hasn't been tested yet. Have you seen the headlines across the country on this? Cities from NYC all the way to Palm Springs have limited or completely outlawed STR properties. I mean, how does Palm Springs limit their STR owners? That's the main source of people staying there! But even Dallas and Fort Worth have both nearly eradicated the Short Term Rental market here. Something to think about.

Yes, the long term buy and hold method is quite boring...but it works.  Anyway, hope some of that helps.

 Thanks for this Andrew.

Yeah, I've been seeing the headlines but have a feeling that's more the media looking for some drama to write on...I've been doing my own research, I've heard directly from several STR investors here on BP (who most have said they aren't seeing any of these massive drops that the media is reporting, only that they're seeing more last-minute bookings, where before they were booked out 30 days+...who knows if that's just the sign of less bookings coming??)

Also though, I've reached out to John Bianchi (The AirBnB Data Guy and also the head of data for Techvestor) and I got his new analytics tool that he developed so that I can pull up actual STR data for any market. Fort Worth for example is currently showing 113 3-bedroom rentals with a median annual income of $49,425

So not sure about what you mentioned the DWF markets stopping Airbnb's, but yes Palm Springs is crazy (I'm in Los Angeles and was shocked when they started banning them) BUT, the surrounding towns allow STR evidently, it all depends on each of the HOA's. And since that whole area has been developed into almost one large sprawling city, it doesn't really matter to visitors if they're staying in Palm Springs proper, or one of the other towns (since usually too hot to walk anywhere anyway, everyone just drives wherever they're going)

I'm hoping to BRRRR then STR, so we'll see...if STR doesn't pan out we'll LTR

Quote from @Andrea Lane:

Great information.  I have been in the business for more than 30 years - things go up and things go down.  However, I think this market is not a normal swing as in the past.  Usually, rates go up & prices go down.  I don't see a big dip in prices.  If the recession continues maybe - but otherwise current owners have rates you will probably never see again, so why sell?  That creates a greater shortage of inventory and no reason for a price decrease.

As a buy & hold person, I never buy without cash flow (at least $1.00).  I purchased on appreciation in the past and it did not work out as well as it should have.  Real estate as a landlord is a long slow process.  I know if I do my numbers right and cash flows from day 1, I will have a property that will produce year after year.  My cash flow is after ALL expenses including property management and reserves.  If the property needs rehab or is not rented, I research the current market to make a decision.

Travis, if you want to do STR a few things to consider, will the property cash flow as a full-term rental? If the laws change, are there too many air B&Bs in the area to support full-time rentals? STR rents are great as long as you can ensure a consistent supply of renters. You should always have a backup plan

Thanks for this Andrea!
yes, I’ve already realized the deal will still have to cash flow as a LTR (expecting maybe only $100-$200/mo) and that would definitely be the back up plan if the STR market doesn’t support.