All Forum Posts by: Allison Zittritsch

@Allison Zittritsch

could you house hack an STR?

otherwise i agree with the others - 50K just isn't enough...

I'll second @Jonathan Greene - STRs hemorrhage cash before you earn a dime in revenue. Furnishing a place is expensive and stressful.  $50k is going to be tight...we always talk about down payments of 20% like that is all that you need. The reality is that you need money for a lot more than the down payment. The only guarantee after buying a property is that you are about to spend a pile of money (whether you furnish it or not). You also need cash reserves. 

$50k is tight, but you can probably get in the game for that if the rest of your financial house is in order. I have nothing to sell and would be happy to help if you think that I can be a resource. We (my wife and I) own and self manage short and mid term rentals. It's tough to get started but both are great strategies to generate a little more year 1 and 2 cash in a tough market. 

Your acquaintance is spot on. Happy to send you some Detroit specific resources if you'd like. You’re close and that's a huge advantage.

50k isn't much to get into short-term rentals in reality because you need a downpayment, closing costs, and then furnishings which are the most important after part that you need. Analysis paralysis is always the product of the confidence not being there. Have you found local real estate meetups so you can meet other investors who are on the same trajectory as you? That will help you get out of analysis paralysis.

Hey Allison, where in Michigan exactly?

If you're near Detroit, you have a huge opportunity to be local to what is probably the most unique market in the country today.

$50k is a tough amount though. It's enough to feel like you have a good slug of cash but not enough to be dangerous. 

If you invest in Detroit you have enough to do a $100k-$120k property with 25% down. You could then, in theory, try operating it as a STR.

I run a STR in Detroit and it does very well. I also have 11 other LTR doors in the city (also do extremely well).

If you have a high capacity to save more capital you could do BRRRR's in Detroit. We do them all the time in the $75k-$95k all in range and they are consistently appraising for $90k-$120k.

It's a great way to scale if you have the capital.