All Forum Posts by: Travis Fairbairn

@Travis Fairbairn I would recommend picking markets where there is something to do year round. I have beach condos in Galveston.  

I think you also need to ask yourself, are you looking for a STR for people who go on vacations like to the beach, mountains, etc. or are you looking for an area that people travel to a lot, like the DFW area. In my experience, these are two different types of markets and require two different marketing strategies and experiences. The vacation renters look for different things from their host, then do business travelers.

@Travis Fairbairn I would recommend picking markets where there is something to do year round. I have beach condos in Galveston.  

I think you also need to ask yourself, are you looking for a STR for people who go on vacations like to the beach, mountains, etc. or are you looking for an area that people travel to a lot, like the DFW area. In my experience, these are two different types of markets and require two different marketing strategies and experiences. The vacation renters look for different things from their host, then do business travelers.

Few things

By now plenty responders commented about buying cash vs w/ a mortgage. IMO there is no right or wrong,  but what is right for you. ex, If you are someone who is looking to retire soon and need to put emphasis on cash flow (CF) it favors one strategy over the other.  

BTW, between all cash or a 20% down there is a VERY nice middle ground - 50% down - which gives you both a better CF while still leveraging - just an idea. 

As for your questions which seems to be mainly Austin vs. Nashville.; I'll assume you mean the metros of each and not the actual city. 

I know both metros VERY well. 

Few pointers:

Both metros are about the same size population-wise. 

Austin (TX) property taxes are approx. 2.5 higher than Nashville

Ins. rates are approx double in Austin vs. Nash.

Austin had appreciated in a much higher rate than Nash. in recent years. 

100k purchase price in both would be a crappy property. 

For nice good schools, middle-class area you are looking at 175k +/- in metro Nash and 250k+/- in metro Austin.   

All in all for many reasons Nash. wins, IMO.

That doesn't make Austin bad, not at all. There are many good things working in its favor. 

BTW, as someone who has been investing in all TX main metros sine 2004 I'd say if in TX . . . than Dallas and not Austin.

BTW,  what made you decide Austin and Nashville to begin with?

Just to be clear I live in CA not in Nash or Aus or DFW just in case it sounds I'm biased. 

@M T Naughton in my opinion buying cash is the wrong way to do the BRRRR Strategy. The best way to do this is work backwards. When you find a property you like.

Step 1 - Figure out how much it’s with all “fixed up”.

Step 2 - Get an accurate idea of how much it will cost to fix it up

Step 3 - Take 75% of the “fixed up” value minus the “cost to fix up”. That is the number you’ll want to offer.

If the offer is accepted you’ll want a loan for 100% of or 75% of the future value.

What this allows you to do, and the main reason you want a loan vs. paying cash. Is once the rehab work is done you no longer have to wait 6 months (there will be no waiting period), but you’ll also get a lower interest rate on your final loan because you’ll be now being doing a rate and term refinance instead of a cash-out refinance. It’s different and rates are higher on a c/o refi.

I'm a lender and a BRRRR investor and 100% believe this is the best way to quickly build a real estate portfolio.

Good luck!!!