What next step options from here..

Question

I have some residential rental properties, acquired over last several years (post 2012), now last 2 years I haven't done any investing due to some reasons, now I want some guidance on what type of investments I should move into, continue with residential rental properties - probably move into Multi family houses? or should I go into some retail or office space purchases? I'm in Charlotte, NC.

Souvik G. · Answer

Kiran,

Have you looked  at the short term rental market in Gatlinburg/Pigeon Forge or Myrtle Beach? That could be a new option to explore. They cash flow extremely well, but need a little bit more of your time in responding to Inquiries, questions, general maintenance requests from renters.

That is where I branched off when I was at your stage about a year back. You can automate a lot of the regular touch-points, and have cash flow that is almost 8 to 10 times more than from a long-term rental.

Hit me up if you need more information!

Vik

Luke Miller · Answer

@Kiran Kumar - your question is more one of soul searching. No one can answer that questions because the assets you listed are so different. I'd explore each of them and figure out exactly what you want out of an investment. Self storage is not like office, which is not like multifamily. All can yield great returns, but will probably do so in different ways.

Julie McCoy · Answer

@Kiran Kumar it's a great suggestion from @Souvik G.- if cash flow is what you're after, short-term rentals in a well-established, high-occupancy vacation destination like Pigeon Forge/Gatlinburg, TN are the way to go.  I have three properties there that I self-manage from a distance, just like Vik said, once you're up and running there's very little time investment, it just requires having some flexibility to respond to messages from guests in a reasonably prompt manner, and the ordinary check-in messages etc. can be automated.

Kiran K. · Answer

@Jonathan Bombaci, thanks for your time and valuable advice.

"In-action is the opposite of progress.",  you are right absolutely right, and I'm in that phase now, looking to put effort and time to take some steps. My plan is to add 1 or 2 more rentals and either a MFH or a commercial with in a year time frame.

Jonathan Bombaci · Answer

I think you're asking a good question. I guess it's really up to you and what you're risk tolerance is.

You're doing the rental thing now. It'd be easy enough to just expand on what you're already doing, you already learned quite a bit in the space having 4 rentals. So expanding that leveraging the lessons you already learned should be easy and profitable. Going from SFH to Multi-family homes is a jump but it's a small jump. All the same rules apply but multi-families tend to cash flow better and scale faster. Making the jump to commercial offices would definitely be interesting but it is a new product and a new market for you. You'll likely make some mistakes getting started in it but if you're excited about it and willing to accept the fact that it'll be a learning experience then I say go for it.

In-action is the opposite of progress. So if you feel like you're progress has stalled because you're not excited with rentals, and you would be excited about getting into commercial then that's where you should go. Doing ANYTHING is better than doing nothing, but it all comes back to what you're risk tolerance is.

Kiran K. · Answer

@Souvik G. Definitely, I'll PM you, I'm interested in this option as well.

Kiran K. · Answer

@Emir Dukic thanks, I'll reach you to explore this option.

Emir Dukic · Answer

@Kiran Kumar I'm in Charlotte as well and focus on Airbnb rentals here. Happy to provide any insight.

Ryan N. · Answer

@Souvik G. and @Julie McCoy

 I am in the same boat as @Kiran Kumar .....looking to figure out my next plan as long term rentals in Charlotte that cash flow well are very few and hard to find.

Gatlinburg/Pigeon Forge or Myrtle Beach

Where are you finding the Short Term Rentals...mls...or off market?

Dion Huey · Answer

@Kiran Kumar  If you are looking for cash flow and fewer managerial headaches, you might want to explore passive investing in RE syndications.

What next step options from here..

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