All Forum Posts by: Andy B.

@Levi Bennett thanks! Could you elaborate on what you meant by this "Finally, do NOT fall into the newbie trap of thinking location is everything. If your goal is ROI, then don't make your goal location, make it acquisition and ROI" ?

I looked at 3 popular destinations (Myrtle Beach | Orlando |Pigeon Forge) to analyze STR properties with the following setup. Not one has positive cashflow with a typical 10% second home loan / 30% vacancy & 6% interest rate. I assume expenses to be close to 50% of rent. What am I doing wrong? Most properties are just too expensive to make the numbers work. I am sure there are deals but for the most part STR doesn't appear to work right now. Not sure if my analysis is correct and probably I am missing something. Looking for your thoughts. How are you making this work? What is different about your basic setup? We cant change the interest rate and asking price. What variables are you adjusting to make these financially viable?

Budget: $750k , Downpayment: 10%, Interest rate 6%, Loan 30 year, 30% Vacancy (Basic assumptions / setup)

1. Consider this property in Pigeon Forge: 754 Kings Hills Blvd - $530k (asking)

Purchase price: $530k ; Rent $380 per day / $4560 (monthly); Operating Expenses 45% of income | NOI - $1791 | Loan payments - $2385 | Cash flow -$594 | Cap rate 4.1% ; Cash on cash return -10.3%

2. 9560 Shore Dr Apt 1911, Myrtle Beach | Asking $679k |2BR | Rent $6996 (Gross) / $233 per day | Cap rate - 3.5% | Cash flow -$1694 | CoC - -23%

3. 4734 Sleepy Hollow Dr, Kissimmee (Popular Storey lake community) - Price - $742,500k | Rent $280 / day | Vacancy 30% | Cash flow -$1288 | Cap rate 4.4% | COC - 16%

How did you use your 0% credit card to finance this? Very creative indeed. I am new. Had no idea credit cards can play a role.

Mashvisor appears to have a real estate investor friendly property search tool which seems pretty useful. Does this work? Any other search tool options that you can share which will help finding investor friendly properties? I am looking for something that shows properties on sale with investor friendly metrics.

https://www.mashvisor.com/stat...

Interesting to see Poconos & Catskills not mentioned as markets. Are the ROI's in these markets lower than Orlando & Smoky mountains (the two markets that are mentioned here most often). Smoky mountains seems to be a popular recommendation. If you had to recommend 2-3 high ROI markets for my budget ($750k - home price); which ones would you recommend?

 @John Underwood Thanks! I am looking for a couple of markets to narrow down my search. The idea so far is to short list 2 high ROI markets and search for properties that have the right characteristics (i.e view & location etc.). Could you recommend 2-3 markets? I will eventually pick 2. The long term plan is to scale so I am looking for more than one market to research.

 @January Johnson Thanks for the insight! You are absolutely right and I will focus more on the ROI metric than occupancy. As an investor thats all I really care about. In my case cash flow with moderate appreciation is the objective. I am currently mostly invested in stocks and the one thing that is missing from my current setup is cash flow & the use of leverage. I am looking to change that.

Home price $750k. 

@Ryan Moyer thanks for your response. Any thoughts on markets other than Orlando? Orlando is on my list but the competition there is very high and I see lots of availability right now even for larger 5+ bedroom properties which makes me wonder about occupancy. 

Goal: Invest in a STR with full year demand where the risk of not breaking even is low (high occupancy) and decent cash flow. Preferably markets that are within a 3 hour flight from NY.

Budget: $750k

I was thinking of getting a property in Orlando close to Disney. Seems its doable with my budget and thats what I am leaning towards right now. Hoping I could get a few more market suggestions that are worth considering.