Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Short-Term & Vacation Rental Discussions
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 2 years ago on . Most recent reply

User Stats

28
Posts
6
Votes
Kiko Mattoso
6
Votes |
28
Posts

Buying STR with current rates as a retirement plan?

Kiko Mattoso
Posted

Hi everyone,

I want an honest answer about something. I own only one STR property upstate NY that gives me around 11% cash on cash return. This means, I get like around 10k per year, net. But reading some posts here on Biggerpockets, this deal will sound bad to a lot of investors who say they only consider deals that can generate at least 20%.

My long-term goal is to buy enough STR properties that will generate a cash flow of 20k/month, so I can retire in the next 15 years with live with this cash-flow money.

BUT, in NY the homes are expensive and with current interests rates, I am not sure now buying STR properties is the way to go. I probably can get 10% investing in stocks. Not sure I wanna go that route, though.

My thoughts: I could buy another house now that would generate another 10% Cash on Cash return, and get around 700 dollars per month in cash flow, but then I'd have to buy 25 properties to reach those 20k. I'd need to buy 2 per year, to achieve that, but I don't have the time or money to do that.  

I know some of you will say " find better deals, maybe not in NY" but how when you're on a 9 to 5 job?

Any advice? What is the best free tool to help me find the deals? I love real estate, so would prefer to find ways to make it right, than to invest in stocks.

Thanks a lot in advance!

Most Popular Reply

User Stats

967
Posts
1,988
Votes
Travis Timmons
  • Rental Property Investor
  • Ellsworth, ME
1,988
Votes |
967
Posts
Travis Timmons
  • Rental Property Investor
  • Ellsworth, ME
Replied

One more unoriginal thought here - slow and steady still wins the race. 

Try to find your unfair advantage. Ours is that my wife is an interior designer. She does that for a living and has worked in $10M homes...she is actually a designer for a living, not "has an eye for design." It's a bit of a cheat code when buying short and medium term rentals. What is yours? Do you have specific hobbies or travel destinations that the masses do not know about as well as you? Do you have any advanced knowledge in construction? Do you have family member or close friends any interesting markets that will be helpful when building out boots on the ground? Find that unfair advantage, lean into it, and slowly, year by year, get the snowball rolling down the hill. 

Loading replies...