All Forum Posts by: Alice Chen

Hi Alice!

Short-term rental investor since 2019 here (:

I 100% prefer homes that are not associated with an HOA. However, these homes can be harder to find, especially if you're looking for something newer or nicer.

I do have Airbnbs belonging to an HOA, but I just make sure there is no verbiage stating against short-term rentals, specifically under 30 days in the covenants, deeds, and restrictions documents of the HOA.

Usually, gated communities have HOAs with restrictions against STRs, but it never hurts to ask!

Hope this helps (:

@Alice Chen I am right there with you. I live in a new subdivision in Converse, TX outside of San Antonio and noticed the two properties on both sides of me are owned by a larger company out of Florida. They have been vacant since December on the rental market. I asked the builder about STR and she said I don't think they are allowed but what you do behind your door is your business just know the risks. Thought about approaching the leasing agent for those properties to possibly arbitrage one as I am right next door but who knows. Darn if you do darn if you don't just have a back up plan and execute. Now let me go check my HOA agreement.

Ok @Daksh Raheja. So regarding self managing, you can do that from anywhere. You just need a good cleaner who will be your boots on the ground as well as a handyperson who can deal with small repairs as they crop up.

Many of us on BP manage from much farther away than 2 hours. I don't disagree with that strategy for the first time owner, but it can be difficult finding something that works in SoCal. California has a lot of regs around STR and each municipality can have them as well.

You might want to look in AZ. My wife and I went there a few months ago to check out Sedona. You should be able to find something in your price range there and it seems to have good occupancy year round. Lot's of outdoor stuff to do as well as the artsy sections. Plus you can get your aura read... :)

@John Underwood i initially thought of the same, but after some research i found that using STR and managing it myself would allow us to get the deduction on our w2 income, by going accelerated depreciation route. That would be huge help as we have high w2 income.

My plan is to get a new STR every year, try to manage it ourselves and either convert to LTR next year or hire a management company to take care of STR.

How does anyone buying in the Smoky Mountains make money buying today?

$1M purchase price and $125k in revenue

P/I/T payments run -$78k/yr (assuming 8% interest rate and 80% LTV)

Cleaning fees -$20k/yr

OpEx - $30k/yr

Total = $128k expenses

-$3k in cash flow.

Do people like losing money or am I missing something?

We managed for a client (who since moved here and no self manages).  He paid $760,000 in 2020 (now worth in the $1M range) and in the year we managed grossed $260,000.  It is not impossible to still hit those numbers here (Tampa area beaches, FL).

I just found out with HOA , not allowed to rent by room at all. I didn't read the CC&R before.