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Updated over 1 year ago on . Most recent reply
Connect with Investors in Galveston
Hi, I am looking to connect with investors in Galveston - I am in escrow on my first STR and am looking at another. Looking for advice on purchasing a second house before my first house has even closes. The first house is already an STR and the numbers are solid. The second house was an STR in 2021 and the rental history speaks for itself and has a lot of room for improvement. Based on the numbers, I would be looking at a caprate of 16.2%, 48% year 1 cash on cash return, and DCR of 2.27.
We have the cash for the down payment but is it too risky for someone so new and green to purchase 2 at the same time?
Thank you in advance - any advice is appreciated!
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#3 Short-Term & Vacation Rental Discussions Contributor
- Rental Property Investor
- Tennessee Florida
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#3 Short-Term & Vacation Rental Discussions Contributor
- Rental Property Investor
- Tennessee Florida
Cap rate does not apply to single family homes.
Most folks (including me) will say rental history is irrelevant.
No chance you'll find anything anywhere near 2.27 in long term rental. In fact I think I'd stop talking about those numbers on the internet cause if what you say is true -it'll get these houses too much attention :)
If you like the numbers buy two! Sounds good to me!