All Forum Posts by: Aaron Mahnke

Thanks for the replies everyone. I really appreciate it. Jossalyn read the situation right. I travel a lot for work and it takes up a majority of my time. I don't have the bandwidth (right now) to learn STRs and execute immediately. It's truly a turnkey situation.

It would be even more passive than renting to a traditional long-term tenant, and having run the numbers (including maintenance, CapEx, vacancy, PIMI), it's making a Cash-on-Cash return of over 12%. It's more than a 1% rule in a desirable area. The plan is to have a one-year lease to give me some flexibility. I can always go to a traditional tenant. If I feel comfortable, I could supercharge it and run it myself in the future. There's a shortage of housing in the school district, so it's ripe for development. There are multiple "outs". For the first deal, I was hoping to hit a single, and I believe this exceeded that goal.

I'm going to get a personal guarantee, and I have my attorney drafting a lease specific to the situation. Again, I appreciate all the input!

@Chase Busick Thanks for the reply, that's exactly it. I have a pretty standard lease from a fellow landlord, but it's obviously geared toward renting to a tenant versus to a company like this situation. There will be a amendment allowing him to change the locks and do everything he needs to run his business, but this feels cut-and-dried.

Does anyone else have any experience in this arena? It truly fits everything I'm looking to achieve with investing while working full-time. Any input would be greatly appreciated. Thanks again!

I am under contract on my first investment property in Kirkwood, closing in a week. It's an incredible school district, and I was planning on getting it marketed to rent to coincide with school starting. I know the property has been used as a STR in the past and it's still has furnishings in the place.

Fast forward to this week, my agent gets a text from a "tenant". Strange... Apparently the owner hadn't had success with it as a short term rental and had rented it out to a local "Short Term Rental Specialty" company. I talked with the tenant, and he wants to keep renting the place and using it as an AirBNB/VRBO. He's agreed to pay market rent and will manage the entire thing himself. No tenant calls, and I'd only get invoiced for things happening at the property (everything taken care of promptly).

Does anyone have experience with a setup like this? What sorts of protections and provisions will I need to have in my lease being that it's to an LLC?

The seller (current owner) vouched for him. He always paid on time, and it would be truly passive. What would you recommend I do to cover all bases?

From a renter's perspective, I love living in Maplewood. Walking distance to everything, safe, INEXPENSIVE RENT. The area is appreciating significantly quicker than rents are being raised. 

I'm more familiar with the southern part (east of Big Bend and south of Manchester), but it seems there would need to be some creativity (ie marketing or driving for $$$s) to find a screaming deal that would cashflow. Most of the houses are older (pre-1950s), so maintenance would probably be a bigger expense.

Great event last week! Excited to get some interesting ideas on funding projects