First Time Investor Advice

[Johnny Wudwanee]

Hi guys, I'm new here, but have been lurking for a while. I've been so impressed by the wealth of information you all are willing to share - thank you!! I'm thinking about diving into the wonderful world of real estate. I travel frequently for work, so my original strategy was: - buy home in desirable area, furnish it well, live in it while local, rent it on AirBnb or VRBO when I'm traveling - once I have additional equity, buy another home and do the same thing, either keeping home #1 as a STR or rent it long term, depending on the current market - rinse and repeat I was considering Austin, TX as my starting point, due to its massive recent popularity. However, I'm starting to think it might not make financial sense anymore. I've put down 3 offers so far (2 of which were over asking), and none have been accepted. It's just a horrible buyer's market. Also, the places I've been looking at are in the $325-$375k range, which would put my mortgage at north of $2k, yet rentals are just barely fetching that amount. So if I actually want to be profitable, STR would really be my only option. Further thinking and the several declined offers are making me re-think everything. In particular: if Austin really makes sense. What do you guys think? I've looked a bit into San Antonio, Sacramento, Colorado, Detroit, and a few other spots, but nothing seems "obvious" at the moment. Any favorite cities that you think would be a good investment?

[Chris Jackson]

Johnny Wudwanee make sure you are going in with eyes wide open. Figure out if you can at least cover your expenses and mtg with a full year rental.

In my area, I live in a second home community by the water, people began buying up homes that make negative sense from a full year rental perspective. But were making bank in the short term rental space. Daily, weekend rentals.

The town a few months ago passed an ordinance that short term rental means 14 day minimum stay. Booooooom.

The penalties are quite steep as well.

Unless you purchased one of the super premium higher end homes, you are.... well, you know.

PS (I'm an RE investor and I'm glad they passed the ordinance. I worked really really really hard to be able to buy the home I live in with my family. I designed my life this way. I chose the neighborhood I want to live on. I didn't choose to live next to a hotel. Many of the ABBs homes have turned into party houses. I'm 40 I'm not a tool and I like to get my party on but I paid a premium for quiet house I chose to buy. If my neighbor became an ABB pro I would be unpleased)