All Forum Posts by: Thomas Cocke

Ronald, I'm looking for an investment partner at the moment, willing to JV one or more of several buy and hold short term/vacation rentals, which I would also personally manage. I'm located in San Antonio, Texas, a stable, growing economy in a tax (and landlord) friendly state. I have a lender already lined up, willing to finance 75% of as many deals as I can put under contract, provided they meet my cash flow requirements. Send me a message if this interests you, and I'll provide you with additional information, as well as estimated cash flow models.

Thanks a lot, Dmitriy! I'm certainly trying my best to take full advantage of all BP has to offer, and look forward to continuing to learn from these great teachers!

Thank you Dusty, I really appreciate the encouragement!

Adrian, I suggest you explore either airbnb or homeaway, as their websites make everything very clear. The review system is straightforward: following a stay, both guest and host write public reviews, which remain visible to anybody while their profile is active. Of course, nobody starts out with reviews, so there is a point at which someone must rely on other factors, such as communication, etc. Generally, this period is much more difficult for hosts than guests, by virtue of the nature of choice - guests have many options, hosts tend to accept most reservations. Fortunately, I've already built up a substantial number of reviews, which transfer between properties, as they are linked to my profile.

These can be single-family, multi-family, condos, town homes, etc, but preferably units with multiple br/ba's, since each of these can be rented individually. Proximity to downtown, airport, or tourist destinations, as well as aesthetic appeal factor largely into my considerations. Generally, any well-maintained property over the $90 threshold, within a 20 minute radius of downtown, will fall into this category, at least in San Antonio.

I don't deal with evictions in sub-30 day vacation rentals. Once the guest's checkout time has passed, they are technically trespassing - however, I would never attempt to have a guest forcibly removed over a few hours, especially since slight inconvenience could result in a glowing review.

Jean, I agree, determining occupancy rates is imperative before I would consider purchasing any potential property. Fortunately, the process is fairly straightforward. If you sign into any of the several websites (airbnb, homeaway, flipkey, etc) that makeup the online rental industry, you have access to the calender of any property listed. This shows the dates the property was booked in past months, nightly rates, as well as future bookings and/or unavailability. In addition, an examination of the map provides the nightly rates similar properties are charging in the area, as well as their occupancy rates of course. Through this function, it is possible to estimate with accuracy the approximate number of nights you can expect to rent per month.

I understand the fear of excessive cleaning and labor, but in my experience it is minimal, especially if you institute a 3-night minimum, or something similar. Normally it takes me an hour or two to do the laundry, vacuum, restock toiletries, and basic tidying up. Also, it is important to remember that you are most likely renting an individual bedroom, and the guests in my experience tend to prefer privacy to spending much time in communal areas, speeding up the cleaning process.

That was poorly phrased, Jean. To be clear, my goal is to become a full time buy and hold investor, and I would certainly consider "barely covering the mortgage" a nonstarter in a potential property. What I meant to say, and somehow garbled, was that in comparison to the cash flow generated by short term rental, the amount earned by renting the same property to long term tenants would be dissatisfying.

Adrian, all payments are handled electronically, and received before the guest arrives. As for criteria, guests and hosts rely on a review system; if a guest/host has even a single negative review, it is unlikely they will find anyone willing to host them, and vice versa. Given this review system, it would be extremely detrimental to the guest in the future if they refused to leave by the designated check-out time, although I have never heard of such a thing occurring. Hypothetically, they would be treated as trespassers and dealt with accordingly by the authorities.

My name is Thomas Cocke, and I'm a 22 year old aspiring real estate investor. This fall, I'll graduate from the University of Texas at San Antonio, fluent in Spanish and conversant in French and Italian. An avid reader since childhood, I've always been naturally curious; whereas my peers shun readings not assigned for class, I've been blessed (or cursed?) with an insatiable thirst for learning, which has been critical in my intellectual development, providing me a unique lens from which to view current economic and geopolitical realities. Granted, this somewhat truncated educational path has taken slightly longer than the streamlined, 3-year degree plans my less "distracted" friends followed. Had I restricted myself to a particular discipline from the outset, however, or had I succumbed to the pressure and not spent a surviving in Mexico without any money or contacts, I wouldn't be where I am today.

Several months ago, as I began my real estate education, I realized that I was in a unique situation, and needed to position myself best to fully capitalize. While it was immediately apparent to me that buy and hold real investing was the most logical and assured path to wealth, and I consider myself a disciple of the Kiyosaki approach (at least in theory), I saw it as an antiquated formula in need of update. The current system is backward; instead of seeking long-term tenants whose rental payments barely cover the mortgage and expenses, you should rent properties short term, charging nightly rates. Not only does this allow you to, as landlord/owner, occupy the unit a portion of the month for rehab or personal use, but it allows you to rent a single-family property as several separate bedrooms. Instead of fretting about vacancies, dealing with evictions and late-payments, or struggling to repair units damaged by children or unruly tenants, I can simply spend a couple hours cleaning before and after guest stays.

Fortunately, it takes six to eight months to build the references needed to charge a profitable rate, since guests are willing to spend up to 100% more for an otherwise similar property given positive reviews. This means that I possess something (20+ 5-star reviews) money can't buy - at least not any time soon.

My goal is to network with local investors who are looking to earn more out of their rentals, or willing to JV a property with me. I'm also looking to find a mentor, someone who is experienced in the San Antonio market and looking to share some wisdom with a young newbie like myself, full of enthusiasm and fervor. At the sake of serendipity, I’ve delved into this community with the hope that members might hear what I have to say and be reminded of the struggles they faced in the beginning, and decide to help another find their way. I fully understand that my youth/inexperience places me at an initial disadvantage, at least in terms of attracting investors, and imbues a level of doubt to any claims remotely sensational. If there are any experienced investors looking for the right young man to mentor, I’m a motivated, capable student, willing to accept both constructive criticism and encouragement. Thanks to everybody in the BP community, it has been an incredible tool, and educated me immeasurably (especially the podcasts!)