New to real estate investing looking for recommendations

[Cole Lema]

Hello all, 

I currently live in the Bitterroot Valley in Montana and am hoping to work my way into the short term rental world. I currently have a full time job, but short term rentals and short term rental management has always captivated me.

Being in Missoula MT’s backyard the market is busy and priced high. Working with a 20-30k budget I am trying to find the best way to get started, and find property number 1. Right now I am looking for lots/land in the 20-60k range and follow that by having a drop structure put onto the lot to generate income. Please feel free to give out any advice, recommendations, and/or feedback.

Additionally, I currently own and live on 23 acres in the valley but the area I live has a clause in the HOA that includes a ban on short term rentals. Are there any legal ways around that?

Thanks everyone! 
Cole

[Keith Miller]

Welcome Cole! Short term rentals can be a great way to maximize cash flow. They're a lot of work, which is why my strategy moved away from them. But as long as you can do the cleanings yourself, or have a reliable cleaner, it can be a great strategy. 

Missoula is definitely an expensive market, and competitive right now. But the Bitterroot isn't much better, there's a ton of demand right now. I think you're going to have a hard time finding a lot for $20-60K, but an agent would be able to help you figure that out, I would talk to one asap to refine your strategy, because you want to make sure your strategy is realistic. Let me know if you want a recommendation for a realtor. Once you do get a lot, if you're looking for the ability to drop in a structure, I'd consider a company like Foothold: https://www.buildfoothold.com/

If short term rentals are not allowed in your HOA, I don't think there's any way around that. Those documents are pretty cut and dry. I personally wouldn't try to do it without approval, as people will find out relatively quickly. But maybe you can put in a long-term renter on your property to give you another stream of income, 23 acres is a lot of land. Can you subdivide?

I think you'd be a great fit for the Missoula Real Estate Meetup, shoot me a message if you're interested. 

Best of luck!