All Forum Posts by: Trent Reeve

Quote from @Carolyn Fuller:

Quote from @Trent Reeve:

Quote from @Andrew Simms:

@Dustin Sanders Any updates since this thread was started? 

 agree. as a prospective investor, good to know how the market is going.

 I think it is such a localized issue. There is no generic answer. Some locals are doing better than others. 

 well, reading thru the thread, there seemed to be a lot of areas mentioned and affected. would be interesting to hear from them 4 months later and how they did.

Quote from @Andrew Simms:

@Dustin Sanders Any updates since this thread was started? 

 agree. as a prospective investor, good to know how the market is going.

Quote from @Mikaela Casey:

where i am looking, im a 6-hour drive away. This is where you develop a relationship with your cleaners and handyman. Some places even offer a concierge service that can do errands. Your real estate agent should help and identify cleaners you can contact. You can set up services that they can do. But it depends on what the issue is. If its a leaky pipe, you wouldnt be fixing it yourself likely, you would call a plumber or handyman. No different doing it remotely than if you were there. Maybe you identify a restaurant that you can pay over the phone, so if an issue is bad enough, you can offer a dinner "on the house" while the issue is being handled. 

I am very new and shopping for my own first STR. I was initially set on using a property mgmt service. But i look at the money they are taking in, I wanted that money. I would say it depends on where you are buying. If it is a place, say Myrtle Beach, Gulf Shores, etc, that has a lot of STR's, you could self manage. Avery Carl has a good book on STR's and talks about self managing. And a lot of podcasts about it. You need to have good cleaners and a handyman, which in a big vacation place you should be able to get. There are a lot of tools you can use to self manage and reduce the time needed to manage it. But if you self manage, you will need to devote some time to it. With a property mgmt, you can be fairly hands off. You just have to look, is it worth giving up 20-30% of your sales. For me, the numbers didnt work, I wanted that 20-30%.

sounds like most southern beach areas. decently long spring/summer rental season. i will be interested to hear what comes out on this thread.

Quote from @Sergey A. Petrov:

Quote from @Trent Reeve:

Quote from @Sergey A. Petrov:

Credit scores have nothing to do with your income or DTI. Credit bureaus have no way of monitoring your income. A new line of credit does affect your credit. Keep it paid and current

 99% of the time, bureaus know how much you are paid. they have more information than you think

 No credit score algorithm across all credit bureaus includes your income 

 well thats a different thing. i was just referring to your statement that bureaus have no way to monitor your income. 

Quote from @Sergey A. Petrov:

Credit scores have nothing to do with your income or DTI. Credit bureaus have no way of monitoring your income. A new line of credit does affect your credit. Keep it paid and current

 99% of the time, bureaus know how much you are paid. they have more information than you think

Quote from @Kevin Pillow:

Quote from @Ricardo Hidalgo:

Quote from @Adam Rose:

Hello Everyone,

I'm looking for a bit of guidance. I'm interested in purchasing my first AirBNB property, and have found a place I think I would love to invest, Panama City Beach! I've visited the area a few times, and it seems that they are trying to distance themselves from their prior party roots. I'd really like to purchase a beachfront condo, rather than housing elsewhere in the city. My question is threefold. First, what condo resorts would you recommend looking for properties? I've heard from locals that Treasure Island, Emerald beach are good places to look. I also have a friend who has a condo at Edgewater that I really liked. Secondly, for any resorts that are preferential, what makes them stand apart from the others (better HOAs, no special assessments, higher occupancy, cheaper HOA cost to amenities provided etc). Finally, I'm interested in beachfront as that's where I would like to stay when I visit, but I would be open to hear about other ideas that have better ROI if there any.

Thanks,

Adam Rose

 Full transparency: I showed all the gulf front condos this week including the big names: tidewater, majestic, Emerald Isle, grand Panama and tidewater etc. They aren't cash flowing. The best options is buying a townhome that needs to be renovated or a beach house that is on the west side or laguna beach. Condo tends to jump the quickest in prices during an appreciation based market. I think condos will be good options when the market settles down. In addition, condos require 25-35% since they are non-warrantable. You can get away with 15-20% down on townhomes or beach houses!

I wouldn’t put a blanket statement that all condos are not warrantable. Some of the lenders we work with like Joe at Midwest Bank Centre have more flexible condo questionnaires that can qualify a condo as warrantable when other lenders can’t. As long as the loan is conforming, below $647,200, it will qualify for that 10% down second home loan. As for not cash flowing I think the market is at a point where buyers can negotiate on price. So writing an offer at a price point that gets you net positive cash flow is a possibility.

 if you are putting 10% down for second home loan, wouldnt you be paying mortgage insurance?

Quote from @Jason Regan:

ITs something Luke and Avery coined.  You set the price very high while you finish your listing so you don't miss out on the boost you get for a new listing while finalizing everything that can only be
done after its live.  It has to be done fast though. 

 ok, i do remember reading that. just wanted to make sure

extremely new to this myself. But my strategy, identify areas, look at property prices. you can use AIR DNA or other sites to get some basic rental numbers. But then you can look up AirBNB and VRBO properties in those areas, initiate bookings to see what prices are like. You can scroll thru the months to see how the prices change and where the prime season is and then you can put some raw numbers together. I would suggest properties that have quite a few reviews, so you know people are staying there. i personally then built out a spreadsheet that lists bedrooms, bathrooms, sq ft, any HOA costs, monthly costs, total monthly costs, annual costs, monthly break even rent $. I also include any notes that would make a property stand out (beach front, amenities, walking distance to restaurants/bars/entertainment), if it comes furnished (can cost $10-20k to furnish depending on your choices), any updates needed (flooring bad, furniture and style dated). i can then review the spreadsheet to see what numbers work for me depending on the property and which properties stand out. all that combined should show you what you can expect from certain markets.

Just my 2 cents on how I am looking.