All Forum Posts by: Austin Works

@Luke Carl@Avery Carl, when dealing with these types of rentals, automating your processes will become everything. Low income tenants & properties can be very high maintenance, so you should aim to outsource as much as possible. In my market, I find it best to either rent to section 8 tenants for guaranteed rent payments (though, this comes with drawbacks as well), or rent to own SFR's, since many people looking in these areas can't qualify for a mortgage and you evade the expense and hassle of maintenance, while gaining security from the initial down payment of $1,000-$1,500.

@Amanda G., I agree completely, hopefully I don't get burned!

I am currently flipping and selling my properties outright, but I'm wanting to build some monthly income and avoid short term capital gains tax. I am interested in selling my flips via lease option. Should I treat these properties like I would a standard flip or should I use more durable, yet less attractive finishes for the property since there's no guarantee the tenant will buy? I want my property to appraise as high as possible, so I'm curious to know how others are handling this?

@Anthony White, would you mind sharing your new property manager's info? I am interested in buying in Memphis myself, and I'm glad to see others succeeding at buying long distance. 

Would you mind sharing contact info for the new individual managing your proeprties in Memphis? I've been considering buying there as well. 

@Account Closed, are there any tutorials or informational blogs you would recommend on this? I've been very interested in using social media, but I'm clueless on where to begin. 

@Luke Carl, would you mind sharing your criteria when searching for properties in the Gatlinburg Pigeon Forge area? I'm actively looking and planning to drive up in August to look at a few, but I'm not seeing very strong rates when I look at VRBO. What makes some of these properties better than others? Where is the sweet spot of lower purchase price paired with higher rates?

@Luke Carl, thank you for your feedback. I am really trying to wrap my mind around this, as I just don't like going into a deal without multiple exit strategies. With me buying one of these properties at market value, what exit strategies would you see available for this type of property? I'd be underwater if I wanted to sell.  What figure are you referring to as 2-2.5%? Rent to purchase ratio?

@Jeff Piscioniere, I am looking at purchasing a cabin in the Gatlinburg area myself at this point, but I've never owned STR's. Have you been buying these below market value, or are you okay with paying market value if it still cash flows? I'm accustomed to just buying undervalued properties in my local market, so I'm struggling with this concept.

@Chuck Kramer, I was just about to ask if you guys could recommend an agent, so this is very helpful. I will reach out today and I'll be sure to let her know you referred her. Also, I know I just asked Tim this, but are you aiming to pay below market value for these types of rentals, or is it typical to pay appraised value as long as it cash flows on these STR's?