All Forum Posts by: Autumn Cain

Hi Saeed! 

As many others have recommended, I would definitely do some deep research into an area to understand what housing rates and property taxes look like in the areas you are interested in. I would also say look at numbers of how much property value in the area has increased in the past 5 years or so, so you can get an understanding of appreciation alongside the cashflow of your investment property. Really hunt for a deal- remember if a property is cash flowing changes are the seller wouldn't be selling unless there is a point of distress.

Just throwing it out there- I live in the Stroudsburg PA area- here I have seen rental rates and property value absolutely skyrocket post covid due to the migration of people out of NYC- maybe look for areas like that that are more up and coming.

Hi Diana!

In this case I would say that for maintenance, you would be best off paying per trip/hourly for the cost of any repairs at whatever is an average median rate for a repair man in your area. Now if you have a general person who stops in to do other small tasks or do more property management style tasks (walking through the house to inspect for damages, drop anything off guests may need, change water/HVAC filters etc.) I would recommend paying them a flat rate monthly, alongside  a list of expected tasks. This can help make sure preventative maintenance as well as minor things don't cost you as much as a handyman visit. Hope this helps!

Hi Brian!

As a property manager/agent in the Pocono Mountain area (PA), I would definitely recommend taking a look into this area for STR. There are some unique factors that set aside the Pocono areas from many others like the seasonal aspects of tourism. A Cool part of the Pocono mountains is that the tourist season lasts ALL year- not just for a few months out of the year. There are diverse activities year round from lake beaches, hiking, sightseeing, leaf changing tours, skiing, indoor waterpark resorts, outdoor parks, farms, zoos and historic areas.

As far as key factors to consider outside of location I would recommend 1. Look at a house that has unique factors. Think A-frames and chalets over the regular ranch stye homes. As a PM for a wide variety of units, the fun ones always outperform the cookie cutter. As far as other factors for an area to choose, outside of the location, I'd definitely say do your homework on the general feeling of STR by Township. Is the township taking any moves against/pro STR? Do they support it? Is the community welcoming of it? Lastly I'd say research the demographic of the parties that partake in tourism in the area. Are they mostly families? Couples? Big groups? Find a house that would appeal best to who you are selling to.

3. If you are located outside of the city it is located in, I'd definitely recommend a PM. Whether that looks like one subcontractor you trust, or a company who's brand identity you can get behind. Having boots on the ground with an STR can make or break the guest experience, as well as preventative maintenance and quality upkeep of your unit.

Good luck on your journey! STR is a fun one- you'll get to have some fun and get creative with your product. Enjoy it!

Hello! (Coming from a property management and licensed agent background) This situation seems overwhelming, and I am sorry to hear this happened. Dump it seems to be the first thought here- but from your post it looks like you are seeking the unicorn solution here. Maybe not a unicorn- but a couple options I came up with: 1)Would you consider seller financing? Seller financing can be a way that 1) You aren't hemorrhaging mortgage payments while paying for work to be done. Maybe under the right terms the buyer you find may chip in to help with the water damage. (The AC unit is a smaller affordable fix in comparison). 2) Why are you struggling to find a tenant? Are there terms of the lease that make it unattractive to perspective renters? Is the rate above what is affordable in that area? (which may be lower than expected since you described the area as not awesome). 3) Rethink your numbers in dumping it- with an estimate for repairs in mind. I would get a good licensed contractor to look at the water issue, and review the repair cost in terms of how many months of income this would suck from the investment. This may make the decision easier for you. I hope this helps, and wish you the best luck!