Short Term Rental, Long Term Wealth Book Feedback

[Jayme B.]

I'm probably the only one on Bigger Pockets on a Saturday night, but was reading Avery Carl's "Short Term Rental, Long Term Wealth" and my mind is churning as usual. I enjoy the book - it gives a great overview of the STR world and specific details on how to get started. I was hoping to see a roadmap on how to go from $100k invested on the 1st STR and the strategy on acquiring a 2nd STR and so forth. That's the part I'm struggling with. I keep reading how people snowball their investments in such a short amount of time, but I can't make the numbers work.

Based on the research I've done, a property purchased for $500k will generally cashflow $15k-25k in an ideal scenario (roughly 20% CoC). My question is how do most people make the jump to the 2nd STR property if you're generating $25k per year on the high end? It would take 4 years to save another $100k before I could make another purchase based solely on the cashflow. Are you cashing out the equity and using additional revenue streams to get the 2nd one? Seems there wouldn't be that much equity to be paid out after closing costs.

Thanks for the insight!

[Luke Carl]

Quote from @Jayme B.:

I'm probably the only one on Bigger Pockets on a Saturday night, but was reading Avery Carl's "Short Term Rental, Long Term Wealth" and my mind is churning as usual. I enjoy the book - it gives a great overview of the STR world and specific details on how to get started. I was hoping to see a roadmap on how to go from $100k invested on the 1st STR and the strategy on acquiring a 2nd STR and so forth. That's the part I'm struggling with. I keep reading how people snowball their investments in such a short amount of time, but I can't make the numbers work.

Based on the research I've done, a property purchased for $500k will generally cashflow $15k-25k in an ideal scenario (roughly 20% CoC). My question is how do most people make the jump to the 2nd STR property if you're generating $25k per year on the high end? It would take 4 years to save another $100k before I could make another purchase based solely on the cashflow. Are you cashing out the equity and using additional revenue streams to get the 2nd one? Seems there wouldn't be that much equity to be paid out after closing costs.

Thanks for the insight!

 Avery's husband here. Thanks for reading her book she'll be very happy to hear that!

The truth is. To get to the next property, or any property.... you need cash. Real estate is a wealthy persons game. 

I would focus more on where the day to day dollar comes in rather than the money from the property. Is there a way to make a move in your W2 world to get some more money coming in to invest. Because at the end of the day it is called "investing" and you have to have the cash to invest to begin with.

If you're waiting for the first property to buy the second property, you'll be waiting a long time. Eventually you get enough properties that they can start buying themselves. Or better yet your properties can start paying off your properties.

Sometimes the internet can make us feel like all we have to do is buy a house or two and quit our job. That's just not true. I had 83 doors before I quit my job, and believe me, I was no doctor.

I would highly recommend the "Guns N Roses Method."  PATIENCE. I know it's hard. It's very hard for me. Real estate is Get Rich Slow.

I was just a normal guy with a normal job and I went out there and did it. It can be done. But I have worked 10 times harder at this than I did at any job I've ever had.

Hope this helps! You can contact me any time I'm happy to talk your ear off.