All Forum Posts by: Arthur Neves

Which areas are you folks finding SFH to reno and rent for a good cashflow?

Cap-rate I search for here, in MF, is 7-8% (15% IRR, 8-10% cashflow) depending on the areas. But IT IS NEARLY impossible to find those on MF right now as far as I can tell. Wondering if you are getting those with SFH.

@Ben Morand

First thing IMO, is know your numbers.

You might be shooting for something that is easy to get and you can get started and learn.

If I were you I would rush to get a SFH, anywhere in the range of 100-200k. With a rent of 1k+

Get to know the area first and get the house. Rent it, renovate it, use what you learn.

If the deal turns out to not be closing the numbers you want, sell the property. You are a realtor.

I would shot for low numbers to start. As the learning piece will add more value than the money you will get back

I tried QBO and Stessa. Not sure I am in any side yet.

I know my accountant likes that I use QBO, but I find harder as I have one entity per MF or portfolio of houses. So in the end I need to create different QBO accounts.

Stessa is OK, but my accountant don’t have access and can’t use it for book keeping.

I was wondering to use both, but that adds a lot of work for me.

Not sure if there is a good middle ground

@Sandrine Li $350 is very expensive.

Mine is a good value I think, not the perfect PM, but they never are.

Cleaning they charge me 95$ in my condo 3bed2bath

I charge the guests $100, as I include some extra amenities like shampoo, etc.

Overall, I think my opinion is that if you have a property in Windsor Hills or Storey lake, which is where I have mines, it is hard to lose money.

Unless you pay 20% for a PM.

Another tip, I use beyondpricing for the nightly rates, they only charge 2%, and it is very worth it, as they adjust prices per day. I always get more than the 2% I pay them.

I also use hostools for message automation. So I have a very little overhead on my side.

My strategy has being to manage the bookings myself only on Airbnb, which I have lots of automation around.

And hire a PM, that I pay a flat fee, so they do the Check-in and out inspections, and manage the cleaning schedule, and call outs.

They charge me about $125 flat fee per month

Hi @Kristyn Morgan , 

I think I can say I had mixed experiences. Mostly the cash flow and occupancy is very good here in Kissimmee, where I own 3 STR right now. Of course, COVID have broke that good flow for me, however, I am assuming this is a once in a life time event, we will probably not got through again. During COVID I took the time to upgrade my units, and actually am just finishing a full renovation in one condo at Windsor Hills. That community is one of the most established around here, and their prices in there didn't fall that much, even during COVID, which is positive.

Let me know if you have specific questions. I know some good PM in the area and cleaners too to send your way if you want. 

I have being looking at 38127. I wonder if a well managed, fully renovated MF can have close to 0% vacancy and good tenants. I want to believe that it is possible if the units look good and are priced correctly. Am I missing anything?

There are a bunch of SFH for less than that in Memphis. Don't hold anything in there yet, but evaluating them atm.

Also interested in investing in Memphis. I am out of state. 

You know what's going to happen: more illegal airbnb. Investors will soon realized renting long term is not worth anymore. Like it is happening in Toronto.

I just sold my investment in Toronto, as they added a 2% increase rule. And that is 2% only. not 2% over inflation. So I was losing money after some years.

BC also added extra taxes for investments properties, and depending how the Canadian election goes this year, I dont doublet on such a thing rolling out nation wide.

Another reason we are move to Florida.

If the government is making harder for investment I hope they will provide house to the people as jnevstors will not want to lose money and will just move somewhere else.