Investing in Short Term Rentals from afar!

[Lorenzo Ferdinands]

Hello BP friends,

This would be my first post here. I am a 28 year old living in Singapore (where Real Estate is very expensive). Just bought my first home at 412k BMV and am renting out 2 rooms which covers my mortgage.

I experienced investing in a duplex in Cleveland, OH on land contract in 2012. I made the mistake of buying the property from my property manager and the conflict of interest left me with poor management, months of vacancy and I forfeited the property back to him. Lost dollars but a lesson learned.

I travel to the US once each year and intend to spend 9 months every year there (5years down the road). This is in the works. By then I wish to have a portfolio of short term rentals.

I am in preliminary stages and am still narrowing down location based on where I would like to live in 5 years as well as location accessibility and demand.

Listening to podcasts etc... I understand I would need the following:

1. Find a location with favourable short term rental regulations

2. As a backup find properties that would cash flow on Long term rental to if regulations change.

3. Find a location with Long seasonal demand or more consistent demand. (I will be looking around convention Centers)

4. Purchase properties that have an optimum # of rooms/beds per dollar invested

5. Have teams of Cleaners and  handymen at hand.

6. Furnish the apartments in a durable but homely manner and provide a high level of service 

Q1. (I am unsure how I should do this. Should I partner with someone on the ground. Should I pay my Cleaners very well and train him/Her/them. Should I look for a really good management firm that is well experienced with short term rentals?)

7. Learn more on and execute the BRRR strategy on these

Q2, I would need to find lenders that could help finance the purchase. I have an excellent credit score but that's here in Singapore. Any recommendations in NC/GA/OH? (my current shortlisted locations)

Any answers to my questions, recommendations of contacts who could help with the know-how, pointing me to relevant podcasts/forum posts, or any relevant advice would be greatly appreciated.

Best regards,

Lorenzo Ferdinands

[Blair Russell]

@Bruce Lynn you are using the archaic definition of  "short term rentals", it has changed completely with the introduction of Airbnb to the market and although the terms "vacation homes" and  "short term rentals" are used interchangeably here on BP they are no longer the same thing. People are making a killing doing short term rentals all across the US (Las Vegas, Denver, Seattle, Portland, Miami, DC, Austin) and it is much more profitable than a long term rental by a wide margin. Search "Short Term Rental" here on BP and see what people are doing in that market. 

@Lorenzo Ferdinands I just got back from Singapore a little less than a week ago after spending a month in Southeast Asia. (It was amazing but I digress)  I also managed three Airbnb rentals in the US at the same time while occasionally completely of the grid in Vietnam, or relaxing on the beach in Thailand. So I can tell you it works. I tend to visit them a couple times a year for maintenance or if I need to be in that area for something else, otherwise I have very little physical contact. Per your question I have one person, a private individual, who works as my cleaner/greeter/on the ground manager/emergency contact for the rental and they take a percentage of each as pay. I met them in person made sure their schedule and lifestyle would work with me gave them a trial run for cleaning and I have been lucky to have minimal personnel changeover. 

Your best bet without a credit or income history in the US is cash to be honest, I'm not sure about which banks are best but maybe look for one that operates in both countries (HSBC?) and get some history with them.