Thank you for this video!! Did you start your first rental in your home town or did you look for where the market was hot? Also, would love to see how you started your first property. I really want to do this!!!
The two areas I checked (Vegas and Nashville) have exceptionally restricted laws regarding STR. For example, Vegas requires owner-occupation. Do you provide guidance and areas with fewer restrictions?
I talk through regulation and how to figure out what the permitting process is like. Nashville is actually a great opportunity to invest because zoning to stricter nowadays which puts a soft cap on supply in the market. Demand is rampant there. So regulation can actually play in an investors favor sometimes
What insurance company do you use for your ft lauderdal prop? I'm struggling to find a wind policy that doesn't have the 30 day rent min requirement. thanks!
Two risks you didn’t address. The first is recessions (and one’s coming) hit vacation rentals particularly hard. I think many of us know real estate investors that had to file for bankruptcy during the last recession when the cash flow dries up. The second is most STR, outside of major holidays and summers, are weekend only rentals. How do you come up with 75% occupancy for those Tuesdays in February at beach properties or Wednesdays in May at mountain properties?
Michael, just came across your channel. Great information you provide! Looking into expanding into Short term rentals / AIRBNB - Wanted to go after our 1st Cabin in Gatlinburg area but prices seem so insane right now. Do you think its a bad time to purchase?
I am not as excited about investing in the Smokies right now. Huge demand shift back to growing urban areas. Supply remained level or decreased in urban areas where as Gatlinburg available rental supply skyrocketed in the past two years
How do you structure deals for STRs when using an investor's private capital? I can see paying them the ROI, but how do you get their capital back out of the deal? It seems properties that are in established markets are mostly turn key, not much forced appreciation to use for a refinance.
I think there are properties in every market, especially traditional vacation markets (mountains, beaches and lakes) that are old and could use some level of rehab to force appreciation. Our most successful properties actually were not turn key and less competitive when purchasing. For deal structure you could do it a variety of ways. If you do a real estate partnership you can hash out who contributes what amount of capital, who is responsible for what, how cash flow and equity are distributed, etc. You could buy your partner out down the road if you agree on it. If you use someone's money as private money or as a private lender, you can just structure the deal as debt and you pay them back a certain interest rate on the loan or a specified % of cash flow until the debt is paid back + some. Then you keep 100% of the equity and cash flow moving forward.
@@luisschay2299 I'd recommend checking AirDNA to see what the market produces on avg for a 4 BR property and also find local comps on Airbnb and pick apart their calendar to see what they're charging. That should give you a better idea of the earning potential
Would you first start by finding a deal in a good place that AirDNA suggests that will recognize a good cash flow return or should I go to my bank and get pre-qualified for a loan?
What questions do you have? Drop them in a comment below! Also - what locations are you most interested in for Airbnb investment?
Anywhere that gets 25% CoC. Smokies is unreal right now. Hopefully your cabin is ok there. Maybe NC.
Do you operate all of this under an LLC or just your personal name?
@@richieshaffer4289 we did our personal name for a while and eventually quit claimed the deeds to LLC structure
Excellent video. I love your teaching style. Can you address the DSCR loan? How did you remedy that or does that eat up your cashflow for 1-2 years?
Thank you for this video!! Did you start your first rental in your home town or did you look for where the market was hot? Also, would love to see how you started your first property. I really want to do this!!!
Amazing video
Question: how do you invest in properties coming out with college with the debt you acquired from college?
How is this property performing today? This is great content and I would love it if you kept bumping it out.
what market should I buy a home in?
Do you need a real estate license and do you have to go to college ?
Can you do an AirBNB projection for Salt Lake City, UT?
Can I get a copy of that template? Thanks!
Hey! Yes it is available here: stanwith.me/melefante6
The two areas I checked (Vegas and Nashville) have exceptionally restricted laws regarding STR. For example, Vegas requires owner-occupation. Do you provide guidance and areas with fewer restrictions?
I talk through regulation and how to figure out what the permitting process is like. Nashville is actually a great opportunity to invest because zoning to stricter nowadays which puts a soft cap on supply in the market. Demand is rampant there. So regulation can actually play in an investors favor sometimes
What insurance company do you use for your ft lauderdal prop? I'm struggling to find a wind policy that doesn't have the 30 day rent min requirement. thanks!
I ended up using reinsure pro
Two risks you didn’t address. The first is recessions (and one’s coming) hit vacation rentals particularly hard. I think many of us know real estate investors that had to file for bankruptcy during the last recession when the cash flow dries up. The second is most STR, outside of major holidays and summers, are weekend only rentals. How do you come up with 75% occupancy for those Tuesdays in February at beach properties or Wednesdays in May at mountain properties?
He is in vacation markets, big demand. He is crushing it
Michael, just came across your channel. Great information you provide! Looking into expanding into Short term rentals / AIRBNB - Wanted to go after our 1st Cabin in Gatlinburg area but prices seem so insane right now. Do you think its a bad time to purchase?
I am not as excited about investing in the Smokies right now. Huge demand shift back to growing urban areas. Supply remained level or decreased in urban areas where as Gatlinburg available rental supply skyrocketed in the past two years
How do you structure deals for STRs when using an investor's private capital? I can see paying them the ROI, but how do you get their capital back out of the deal? It seems properties that are in established markets are mostly turn key, not much forced appreciation to use for a refinance.
I think there are properties in every market, especially traditional vacation markets (mountains, beaches and lakes) that are old and could use some level of rehab to force appreciation. Our most successful properties actually were not turn key and less competitive when purchasing.
For deal structure you could do it a variety of ways. If you do a real estate partnership you can hash out who contributes what amount of capital, who is responsible for what, how cash flow and equity are distributed, etc. You could buy your partner out down the road if you agree on it.
If you use someone's money as private money or as a private lender, you can just structure the deal as debt and you pay them back a certain interest rate on the loan or a specified % of cash flow until the debt is paid back + some. Then you keep 100% of the equity and cash flow moving forward.
I own a house (4 bedroom 3 bathroom) in Doral, FL and I like to know how much I could make out of it with Airbnb.
@@luisschay2299 I'd recommend checking AirDNA to see what the market produces on avg for a 4 BR property and also find local comps on Airbnb and pick apart their calendar to see what they're charging. That should give you a better idea of the earning potential
Would you first start by finding a deal in a good place that AirDNA suggests that will recognize a good cash flow return or should I go to my bank and get pre-qualified for a loan?
I would analyze deals first, but it also would be good to get prequalified if you don't know roughly what your buying/borrowing limit would be
I see gorgeous properties in Fort L. 5 bedrooms beachfront for $500 in the middle of May or July, how do you come with $950?
Not every property is created equal. Nor are they necessarily managed effectively
Awesome video, thank you. If are looking for partners let me know.
Thank you!