All Forum Posts by: Atanas Petrov

 Hey Jossalyn,

Thank you for reaching out.  I'm confident I can find a property but whether or not the numbers will make sense is another story.  Regardless I'm planning a trip to the 30a area to explore and learn about your local market . I will reach out

Thank you so much Marshall, I really appreciate your input. I have been doing a lot of research, talking to many people, networking simply trying to learn more about STR. As a matter of fact my first choice for a STR market was initially specifically the Florida Panhandle. Then I realized that it's hard and expensive to get a direct flight from LAX, and I would have to spend some time there 2-3 months to set it up, make contact and find people to work with in all of the above, cleaners, handy man and so on, and set it all up which is easier said than done. Unfortunately I can not take off 2-3 months from my work life in LA and focus on identifying, purchasing, perhaps upgrading, and setting it all up for a STR. I admire that you did it and soon or later I will get to that point owning a property in a different state.

I will keep the STR options on my mind and keep a close eye on the opportunities here in LA and I'm sure that it will all come into place in the next 2 months before I make a decision and commit to either strategy.

Thank you again

Hey Dan,

Thank you for taking the time to input your knowledge and experience. To answer to some of the details you noted, I will start with clarifying that I'm not looking to do STR anywhere in LA or beach cities, it can be done for up to 90 days per year I believe, with some limitations. I was thinking of some of the ares like you mentioned above because you can technically have permit to run it as a business all year around. Of course some of those markets are very saturated, many people are buying just to buy in these hot STR markets where more experienced investor have already owned and operated property for couple of years at least.

I agree that mountains offer more potential year around, as I myself enjoy the great outdoors very much.  

On the question Long Term Rental.  On the 2nd house I did it with 15% down payment on 975,000 property, rented it out right a way last year.  I put a slightly higher monthly rent in the add just to see what the interest is.  There were not only different tenants that were interested, but the ones I rented the house to paid upfront for the whole year.  The lease covers my mortgage and the gardener, and of course the rest of the monthly bills are covered by the tenants.   Technically I'm cash-flowing 100$ per month with 15% down, and haven't had any issues with the property where I had to spend money thus far, except trimming a tree.  May be I got lucky.

Thank you again

Thank you

Hello everyone,

I've been deliberating whether to purchase a vacation home, with the intention to run it as a short term rental preferably within 2-5 hours from Los Angeles where I live.  I can not identify a vacation rental market where the word "saturation" is not mentioned which make me insecure whether or not the property will positively cashflow, considering it's a decent house with nice touches, furniture etc.   In other words my biggest fear is to put a 20% downpayment may be less, decorate and furnish the place nicely which is easily 20k if it's a 3 bedroom 2 bath,  push it on AIR BNB and VRBO, and then not cashflow positively a few months later.  I know it will take around 2 months to set up the place and get the permits for short term rental which I can certainly cover financially, and pay the mortgage for up to 4-6 months if necessary. 

Would any of you vacation rental investors say just go for it, and would you recommend markets that are relatively consistent and would cashflow, and it's not only 1 season market like some of the national parks.

I do have 2 single family long term rentals in Los Angeles, a condo, and currently building a 1200 sq ft ADU on one of the properties which will cashflow very very well after it's complete. So I have some experience with long term rentals, tenants, and all the small and big issues that comes with that.

I could repeat the process of buying another single family home in LA, rent it out right a way and I will be able cashflow 200-300$ may be more with 20% downpayment with no or minor improvements, talking on about a 1 million price tag of a home.  Because of my experience with long term rentals, I would encourage anyone to get into real estate, weather it's house hacking which I have done for the past 6 years, or buying a house and renting it out, perhaps duplexes,  of course multifamily I would say just do it, start anywhere you can.  Yet when I have to overcome my fear of buying a vacation rental I'm very hesitant and indecisive. 

What do you think?  Are vacation rentals a good strategy to expand outside of long term rentals for better cashflow and appreciate with extra work, or a safer equity long term rental approach.

Thank you in advance for any opinions 

Hello,

I have 2 single family houses and a condo in Los Angeles, and have been learning abut Vacation Rentals lately. I'm 2 weeks away from being ready taxes filed etc. to pull the trigger on the next investment property. I have made the decision to purchase a house for the sole purpose of Short Term Rental this time, because I will be able to generate more positive cash flow if everything is set up nicely and it goes well and I can treat it as a business. I initially considered to purchase STR in Florida, but decided to do my first one near where I live so I can learn, and have a hands on experience. I have narrowed down a few areas mainly Palm Springs, Joshua Tree, Yucca valley area, or San Jacinto peak also in that area. Another option is Big Bear, Lake Arrowhead Area, and lastly further near Yosemite and Sequoia National forest which is very seasonal market. I would appreciate any comments or advice and what you think about a specific area that would be good for buying a Vacation Rental with relatively low risk.

Thank you