All Forum Posts by: Angelo Cortez

I would recommend AirDNA for data. My ex-CPA has recommended buying a STR outside of California (I went against this and bought a 30 year-old build Sacramento and it is cash flowing as a STR/MTR hybrid). It doesn't fit the "20% rule" for STR's, but it is cash flow positive; the 3b/2ba is cashflowing around ~$400/month after PM fees + utilities.

Lots of free info out there though - would recommend Googling "AirBnB Data Guy" where he gives his thought process in doing the analysis.

1 Vote

Quote from @Jared Pinkus:

Hey @Angelo Cortez - The City is clamping down on these but long-term buy and hold in Madison is still great. If you're interested in the market, reach out anytime, I'd be happy to talk with you!

Only interested in STR due to tax benefits unfortunately.

0 Votes

Madison, Wisconsin

Quote from @Lisa T.:

Great discussion. I would really like to have a vacation home in California or AZ that my family can use to get out of the city and be closer to nature. I would need to use it as a STR part of the time to help cover the costs and for tax purposes, but I'm not really looking forward to "operating a STR business" and don't need a lot of extra cash flow (I have W2 job that I truly enjoy). Ideally, I would love something turnkey (furnished and operating as a STR now that someone wants to off-load). What is best way to go about finding such a property? Does something like this even exist in this amped up STR market with so many pros/operators out there nowadays?

Your best bet is purchasing from a STR realtor (E.g. Zeona McIntyre) who has an inventory of turnkey rentals. Alternatively, there is Revnest. After that, you would probably have to get 100 hours in for the year, and then have someone PM it. I highly suggest speaking to an tax planner (e.g. EA or CPA) to help plan though. Best of luck in your journey.

3 Votes

Nashville, Tennessee

Quote from @Mike Grudzien:

Ouch! Have you explored any other solutions than bleeding for 2-3 years?

I’m giving it a shot to feel a whole year at least. I know that there is seasonality in any market. Jan-March are the slowest for Sac. Hopefully I can at least go even after these months

1 Vote

Nashville, Tennessee

I'll weigh in actually a bit. I have a duplex in Sacramento. Losing 1500-2k monthly on it. Yes we are bleeding. The appreciation is probably worth more than the cash flow loss, which I am okay with at this point, but it does hurt to see it bleed. Thinking of selling in 2-3 years if I can't refi at a lower rate.

0 Votes

Nashville, Tennessee

Not me. My places are 90-98% booked in Sacramento.

1 Vote

Nashville, Tennessee

@Noah Laker,

Interesting insight you have. I would be interested to see the PriceLabs market data on the 3 markets you've mentioned, and how they compare to Gatlinburg, TN or Joshua Tree, CA.

I think what appeals to Sacramento is the proximity comfort to Bay Area investors. Just my 2 cents.

1 Vote

Sacramento, California

Curious if anyone doing STR's in Madison WI. I lived in the area for a bit, and saw the high AirDNA rating for the area. Curious on how long the permit process takes. Would love to connect.

0 Votes

Madison, Wisconsin

Any update on this? I'm looking into STR's in WI too.

0 Votes

The truth of the matter is I have already 3 STR's in Sacramento already and two full time jobs... I did set those up, but I can't attend to guests full time anymore. I'm also fine with breaking even as the STR is more of a tax play for me.

2 Votes

Los Angeles County, California

All Forum Posts by: Angelo Cortez

Angelo Cortez has started 9 posts and replied 38 times.

Post: Where to own STR that cash flows at current interest rates?

Post: STR's in Madison?

Post: STR Regret Stories...

Post: STR Regret Stories...

Post: STR Regret Stories...

Post: STR Regret Stories...

Post: STR in Sacramento

Post: STR's in Madison?

Post: Starting a short term rental in Wisconsin

Post: Joshua Tree STR Hosts/PM