Ocean City STR investor
Realtor · Ocean City, MD · Member since 2019 · 54 posts · 26 votes
Hi BP community!
As my investing career has been advancing I wanted to start a thread for people interested in short term (or long term) rentals in Ocean City, Maryland and the Delaware beaches.
I have two STR's in Ocean City that are doing very well. I also have one in Bethany Beach and Lake Harmony, PA. So far, Ocean City has been my favorite market. I am also a realtor in MD & DE and have been helping other people get STR's in that area.
My goal is to acquire another property this year, but I am struggling to build capital fast enough to amount to a down payment. I have used hard money for my last two purchases and rates are so high right now that it kills most deals. What are others doing to raise capital?
@Heather Carrow when you say hard money loan, are you more referring to just a private loan in general, or specifically a short-term/bridge loan (i.e 6-18 months) that is used either for the purchase + rehab or the home, or just the purchase of the home (but on a tight time frame) with an interest rate of around 9%-11% and 1-3% in origination fee? Trying to understand if you're referring to a DSCR loan or a true "hard money loan."
Hi BP community!
As my investing career has been advancing I wanted to start a thread for people interested in short term (or long term) rentals in Ocean City, Maryland and the Delaware beaches.
I have two STR's in Ocean City that are doing very well. I also have one in Bethany Beach and Lake Harmony, PA. So far, Ocean City has been my favorite market. I am also a realtor in MD & DE and have been helping other people get STR's in that area.
My goal is to acquire another property this year, but I am struggling to build capital fast enough to amount to a down payment. I have used hard money for my last two purchases and rates are so high right now that it kills most deals. What are others doing to raise capital?
Have you thought about partnering? You have the experience and team in the market, it sounds like you just need a $$ partner. yes you would give up some of the equity but it would help you scale faster if that's your goal.
I would love a partner. It would make it a lot easier to scale. I have partnered in the past, and it went well, but I would need someone that can bring some capital to the table. Do you have any tips on getting a partner?
Hi BP community!
As my investing career has been advancing I wanted to start a thread for people interested in short term (or long term) rentals in Ocean City, Maryland and the Delaware beaches.
I have two STR's in Ocean City that are doing very well. I also have one in Bethany Beach and Lake Harmony, PA. So far, Ocean City has been my favorite market. I am also a realtor in MD & DE and have been helping other people get STR's in that area.
My goal is to acquire another property this year, but I am struggling to build capital fast enough to amount to a down payment. I have used hard money for my last two purchases and rates are so high right now that it kills most deals. What are others doing to raise capital?
Have you thought about partnering? You have the experience and team in the market, it sounds like you just need a $$ partner. yes you would give up some of the equity but it would help you scale faster if that's your goal.
I would love a partner. It would make it a lot easier to scale. I have partnered in the past, and it went well, but I would need someone that can bring some capital to the table. Do you have any tips on getting a partner?
Be as specific as you can about your goals and then try and find a partner to fill the gaps. I just went through my first partnership with a great friend of mine back in PA. It definitely helps ease the burden as everything is split 50/50.
What size property size are you looking for in OCMD? What St? I grew up vacationing in OCMD and know the area well from OCMD to Rehoboth. Some great memories from that area!
@Lauren Kormylo How is the market in Rehoboth for STR's? I have one in Bethany and the off-season is so tough compared to Ocean City. Ocean City does so much to drive tourism year-round and I have found that Bethany does not do this as much. Summer is great in both markets though!
@Sarah Kensingerundefined I like this idea. Would you be willing to share a bit about how you found hosts to allow you to co-host for them?
@Michael Baum I do have equity built up due to appreciation so that Is an option. & I did a DSCR for 2 of my properties in the past. I enjoyed the process, but rates are very high right now.
@Robin Simon one is a second home loan with a great rate and the other is a hard money DSCR loan also with a great 30 year fixed rate (thanks to the covid rates).
@Account Closed agreed it is a scary time. I am seeing listings sit longer in this market and competition is lower. I think that if you can get a deal that makes sense and then refi down the Road when rates lower it could put you in a good position when everyone else wants to start buying again.
Your opinion on refinancing reminded me of what a realtor recently told me...you marry the house and date the interest rate. I thought that was a pretty good analogy to remember!
Just curious, how did you find some cohost clients through bigger pockets?
Hi BP community!
As my investing career has been advancing I wanted to start a thread for people interested in short term (or long term) rentals in Ocean City, Maryland and the Delaware beaches.
I have two STR's in Ocean City that are doing very well. I also have one in Bethany Beach and Lake Harmony, PA. So far, Ocean City has been my favorite market. I am also a realtor in MD & DE and have been helping other people get STR's in that area.
My goal is to acquire another property this year, but I am struggling to build capital fast enough to amount to a down payment. I have used hard money for my last two purchases and rates are so high right now that it kills most deals. What are others doing to raise capital?
Have you thought about partnering? You have the experience and team in the market, it sounds like you just need a $$ partner. yes you would give up some of the equity but it would help you scale faster if that's your goal.
I would love a partner. It would make it a lot easier to scale. I have partnered in the past, and it went well, but I would need someone that can bring some capital to the table. Do you have any tips on getting a partner?
Be as specific as you can about your goals and then try and find a partner to fill the gaps. I just went through my first partnership with a great friend of mine back in PA. It definitely helps ease the burden as everything is split 50/50.
What size property size are you looking for in OCMD? What St? I grew up vacationing in OCMD and know the area well from OCMD to Rehoboth. Some great memories from that area!
I think being specific about goals is definitely key!
I am looking anywhere in OC as long as the unit/house would make sense as a solid rental. I also love the area! I have found that units with a good view and solid amenities make for the best rentals in my experience.
@Lauren Kormylo How is the market in Rehoboth for STR's? I have one in Bethany and the off-season is so tough compared to Ocean City. Ocean City does so much to drive tourism year-round and I have found that Bethany does not do this as much. Summer is great in both markets though!
@Sarah Kensingerundefined I like this idea. Would you be willing to share a bit about how you found hosts to allow you to co-host for them?
@Michael Baum I do have equity built up due to appreciation so that Is an option. & I did a DSCR for 2 of my properties in the past. I enjoyed the process, but rates are very high right now.
@Robin Simon one is a second home loan with a great rate and the other is a hard money DSCR loan also with a great 30 year fixed rate (thanks to the covid rates).
@Account Closed agreed it is a scary time. I am seeing listings sit longer in this market and competition is lower. I think that if you can get a deal that makes sense and then refi down the Road when rates lower it could put you in a good position when everyone else wants to start buying again.
Your opinion on refinancing reminded me of what a realtor recently told me...you marry the house and date the interest rate. I thought that was a pretty good analogy to remember!
Just curious, how did you find some cohost clients through bigger pockets?
I need to spend more time on the BP STR forum again. I haven't been on in a long time! I found the realtor for our first STR here on the BP forums and now we own 2 properties. Time flies when you take action! Appreciate the insight!
Hi BP community!
As my investing career has been advancing I wanted to start a thread for people interested in short term (or long term) rentals in Ocean City, Maryland and the Delaware beaches.
I have two STR's in Ocean City that are doing very well. I also have one in Bethany Beach and Lake Harmony, PA. So far, Ocean City has been my favorite market. I am also a realtor in MD & DE and have been helping other people get STR's in that area.
My goal is to acquire another property this year, but I am struggling to build capital fast enough to amount to a down payment. I have used hard money for my last two purchases and rates are so high right now that it kills most deals. What are others doing to raise capital?
Have you thought about partnering? You have the experience and team in the market, it sounds like you just need a $$ partner. yes you would give up some of the equity but it would help you scale faster if that's your goal.
I would love a partner. It would make it a lot easier to scale. I have partnered in the past, and it went well, but I would need someone that can bring some capital to the table. Do you have any tips on getting a partner?
Be as specific as you can about your goals and then try and find a partner to fill the gaps. I just went through my first partnership with a great friend of mine back in PA. It definitely helps ease the burden as everything is split 50/50.
What size property size are you looking for in OCMD? What St? I grew up vacationing in OCMD and know the area well from OCMD to Rehoboth. Some great memories from that area!
I think being specific about goals is definitely key!
I am looking anywhere in OC as long as the unit/house would make sense as a solid rental. I also love the area! I have found that units with a good view and solid amenities make for the best rentals in my experience.
I agree, views definitely help! I grew up staying in rentals on the bayside (im assuming due to cost) but after having kids, Beach side is more attractive and also more $$$. Fenwick would be great due to taxes but good properties that cash flow are few and far between. Fixer Uppers are the way to go to force appreciation.
Where are you guys finding deals in OC? All on market?
Where are you guys finding deals in OC? All on market?
If they are on market, value add is going to be the best way to get good COC return. I would recommend networking with some local realtors as well to stay ahead of the curve and maybe find some pocket deals. I like the DE side a little better. I wish there were more SFH beach side in OC but they are becoming more rare with development.
Right now it is a little tough with the interest rates and the prices still being pretty high, but I think that prices will only continue to go up, so my strategy has shifted a little bit. I am accepting slightly less cash flow, with my eye on the appreciation potential. I do agree that if you can find something you can fix up and add value add it would be ideal. I am a realtor in Ocean City by the way! If anyone wants to be on my list for pocket listings send me a message. I am happy to send them.
@Bob LettYes, would definitely partner with the right person. I have done that in the past and it has worked out well for me.
I think to find a co-host, you should put it out there on BP or look for the active hosts in your area that are killing it & ask them if they would be interested in co-hosting for you.
@Heather Carrow - hi Heather, hit me up. We are getting out of a 15 year LTR and looking to do a 1031 exchange for a STR in OCMD. Closing in late May so timing is a bit of an issue. We haven't been in the STR market, so can use the local expertise.
Thanks!
Frank
@Heather Carrow - hi Heather, hit me up. We are getting out of a 15 year LTR and looking to do a 1031 exchange for a STR in OCMD. Closing in late May so timing is a bit of an issue. We haven't been in the STR market, so can use the local expertise.
Thanks!
Frank
Happy to help and looking forward to chatting with you about your next move!
@Bob LettYes, would definitely partner with the right person. I have done that in the past and it has worked out well for me.
I think to find a co-host, you should put it out there on BP or look for the active hosts in your area that are killing it & ask them if they would be interested in co-hosting for you.
I will definitely reach out! I would love to chat about properties in OCMD.
@Bob LettYes, would definitely partner with the right person. I have done that in the past and it has worked out well for me.
I think to find a co-host, you should put it out there on BP or look for the active hosts in your area that are killing it & ask them if they would be interested in co-hosting for you.
I will definitely reach out! I would love to chat about properties in OCMD.
Sounds great!! Happy to help in any way that I can!
@Bob LettYes, would definitely partner with the right person. I have done that in the past and it has worked out well for me.
I think to find a co-host, you should put it out there on BP or look for the active hosts in your area that are killing it & ask them if they would be interested in co-hosting for you.
I will definitely reach out! I would love to chat about properties in OCMD.
Sounds great!! Happy to help in any way that I can!
Great! I sent you a PM!