All Forum Posts by: Brandi Scharrer

@Alfred Litton The STR occupancy rate for WF is what sparked this thread for me. I pulled the data from AirDNA and while I know I can't rely on that 100% the occupancy rate for STRs in this area seemed pretty good (70%). I wasn't really sure why. When I checked some vacation rentals sites I saw lots of the homes were indeed booked. I heard Texas in general had higher taxes and I've looked into that too but appreciate you calling it out. It is one of the other reasons I am looking at both northern TX and southern OK. I was figuring a lower insurance cost than what you have so thanks for sharing that, I'll adjust. Appreciate all the info you've shared on WF!

@Bill B. That is good to hear about multiple loans not being a huge issue. If your loans were with local Vegas banks were they also for Vegas rental properties? I've also wondered do you go local to where you are or where you are purchasing, if out of state. I previously had assumed local to where you are purchasing.

Newbie investor here. My questions are more around strategy in getting multiple loans in a short time period.

Here is what I’m looking to do:

I’d like to purchase 2 (maybe 3) SFHs within the next 6 mos. All the homes will be out of state and none will be considered owner occupant. Today our legal city/state of residence is Las Vegas, NV (Summerlin). We do not own there and are not currently planning on purchasing there right now. We also don’t plan to change our legal state of residency.

Property #1: SFH, buy and hold in Michigan where our families currently reside. We would stay in that property 60-90 days every year. When we are not living there we will STR. Shooting for a 10% down payment with a second home mortgage. I would entertain doing a BRRRR here as we have local connections to help.

Property #2: SFH, buy and hold currently looking at Texas or Oklahoma. We would stay in this property at least 30+ days a year and STR it the remainder of the time. Assuming this home will be considered an investment property for financing and require 20% downpayment.

Property #3: SFH (or maybe Duplex), buy and hold. May not do this property in the 6 month window I mentioned but definitely eventually. Location TBD but somewhere between Michigan and Nevada. We would also stay in this property roughly 30 days a year and STR it the remainder of the time. Also assuming this home will be considered an investment property and require 20% downpayment.

Current Financing Plan:

This is where I need some advice. The current plan is to purchase all of the above using conventional mortgages with cash down payments as required. I have a good salary, good credit and little to no debt. Out of the gate I am hoping to carry these without needing to prove they will make any type of rental income. I realize this will change as my portfolio grows.

The Questions:

1. With trying to get multiple loans so close back-to-back any things I should be mindful of? Would getting from one lender make more sense than separate ones?
   
2. Do you have to show/prove rental income or previous landlord experience when purchasing a SFH for an investment OR as long as you can cover the costs without the rental income does it really matter?
   
3. Does the order of the loans above make a difference. Example, should I do the second home mortgage before getting a loan for an investment property? Does the fact I don’t have a owner occupant loan matter?

Thanks in advance BP community! I look forward to your input.

Disclaimer: I am aware of the STR laws and regulations and will ensure I abide by them for the above purchases. I have a exit strategy in place if those were to change in the areas I purchase in. I have also lived in or actively researching the out of state locations I plan to buy in.

Great, thread and love to see so many techies here. 

Q - What do you do in tech?

I've been doing software product development, experience design and user testing/research for about 16+ years. I've been a remote worker for quite some time which allows me to move all over the country as a digital nomad. I was also part of the early start-up movement in Las Vegas and had 2 tech start ups of my own. Both failed, but a great experience and time! I currently work FT remotely for a large tech company based in Silicon Valley.

Q - How do mix tech and REI?

TBH I haven't actually pulled the trigger yet as a true investor but when I do automation will be key for me as our plan is to have multiple out of state STRs that I am planning to self manage when we are not staying in them. Plus my current goal is not to quit my job so I'll need to balance both. My analysis, research and pitching comes in handy as I've built out the ultimate pitch deck aimed at my target audience, my husband. REI is my side hustle but with our plan these investments will also be homes we live in part-time so he'll need to be invested mentally.

Q - Which one is side hustle
REI. Tech is not only my "day job" but will fund my REI adventure in the beginning. I also love what I do and am not currently looking to replace my day job but instead use REI to enhance our digital nomad lifestyle while building long term wealth.

@Alfred Litton more great info! Did you do any renovations on those homes? My plan with this property and location would be for us to live in it 3-4 mos out of the year, most likely the winter months. Then we would STR it the remainder of the time. My alternative plan would be to LTR it.

@alfredlitton More great location feedback, thank you! I've been looking south and southwest so it is nice to hear others recommend those areas too. Still haven't pulled the trigger yet but hoping to soon.

Whole house. Personally, renting a room only isn't really my thing but it might work for others. Plus, my husband and I travel together and we work from the house remotely. 

@nikmoushon 
I am a full time "traveling professional" (aka digital nomad) and rent STRs for 30-90 days at a time. I always start with AirBnB and if I have no luck I try other sites. The technology with AirBnB is just so much better than the others from the guest's perspective too. Years ago I used Homeaway/VRBO but when they changed their policy and started passing more fees onto the guest their service fees became outrageous for longer term guests like myself. Sometimes if I find a place on Homeaway I might offer doing a short term lease agreement outside of the platform. If we do that I'll book for a week in it so both of us can do reviews, etc. I've never considered myself a furnished LTR whether the law sees it that way or not. 

Now, I've rented my fair share of STRs from LTR property management companies playing in this space too and I am always disappointed. I might be staying longer as a STR-er but personally I am more aligned with STRing expectations than I am a furnished LTR. Examples, no I do not plan to mow the grass, no I do not want to put utilities in my name, no I am not traveling with my own TV, towels, pots and pans and no I would prefer to not "show the house" while I am living AND working from it. You wouldn't ask a person on vacation for 1 week to do that why would you ask someone working and staying in the house for 30 days? Some real examples from our travels. At the end of the day we are normally paying a premium to not have to deal with those things. Anyway, I think AirBnB is a good place to start. I always look for keywords in the listings like "long term stays welcome" etc. Let me know if you have any other questions on this from a traveling professionals perspective. I might not the have the opinion of all but I have the opinion of one with years of doing this. Good luck!

@Julie McCoy That makes a lot of sense too. I can see how the disruption of a process could actually slow it down. Maybe I am not doing hosts a favor by letting them know when we leave. I guess I always thought it was also a good confirmation we are gone.

@Julie McCoy I suppose to be fair I should probably change "ALWAYS" to "VERY OFTEN" since we have stayed at probably 100 STRs by now and I'm sure it doesn't happen 100% of the time. lol  But it does happen regularly in the past 1-2 years than it ever did previously. I get it, everyone is trying to streamline the process and be efficient. I don't mind and if I know I'll share it but sometimes I am not positive yet. And we always text too when we leave, even if the host doesn't ask. Just seems like common courtesy.