All Forum Posts by: Brandon Holman

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $300,000
Cash invested: $39,000

This is my first investment property!

What made you interested in investing in this type of deal?

We wanted more property for our family and extended family and I knew I could use it as an STR to offset costs and pretty much give us a place that pays for itself while getting some tax benefits, equity, and possible refinance in the future. Plus, with all the property, I plan to land hack and add some value (glamping anyone? ;) ).

How did you find this deal and how did you negotiate it?

My neighbor knew that we wanted to buy their place once they were ready to sell. So when they were ready to move, we were ready to buy!

How did you finance this deal?

Second home loan - only 10% down!

How did you add value to the deal?

I renovated the inside and outside. Not major renovations, just a lot of refresh. I removed popcorn ceilings, painted all walls (inside and out), replaced and changed out light fixtures (inside and outside), furnished the entire home, and created a fun outdoor space (fire pit, grill, picnic area, outdoor games - including wiffle ball!).

What was the outcome?

It has been great so far! Paying for itself just like we hoped!

Lessons learned? Challenges?

Renovations by yourself take a really... long... time! My father in-law did help with some painting and removing some of the popcorn ceiling. But man, I didn't think painting and all the landscaping would take as long as it did. I started the process in March and didn't finish until September!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Honesty, the lender we used was kind of difficult. So I am not going to include them here. And as far as RE agents, I was one at the time of this purchase :). Now I just do referrals.

Hey all,

My business partner and I just started a real estate related business, and part of what we do in our business is Co-Host short-term rentals.  However, one of our clients wants to use his home as a mid-term rental and he lives right outside of Austin, TX. So here are my questions:

- Can we co-host a mid term rental in Texas or would this be considered Property Managing since a lease is involved?

- I ask this because I am pretty sure you have to have a RE Brokers License in order to be a Property Manager in Texas (when leases are involved).  But if we are just co-hosting for the client, would this be within guidelines?

- I have my real estate license, but I think I need a RE Broker's license which I cannot get for another 3 year (I think anyway) as I am only 2 years into being a licensed agent (and I am just doing referrals anyway).

Any advice would be super helpful!  Thanks!

Hello all!  

I am hoping to get some tips or recommendations on how to get my first STR using only 10% down. This was always my plan, but what I have run into is not being able to get a loan in my name, at least not the second home loan at 10% down that I want. I recently moved from WA State to East Texas and changed jobs. This change is the reason I cannot get this particular loan, at least not on my own. I have saved up 100k for my down payment, closing costs, etc... but in my recent experience in talking with lenders, they don't care about how much cash you have in the bank, they care about how much you are bringing in and how long you have held that job. And as a new Real Estate Agent in East Texas, I am not bringing in much cash... yet ;).

Here are some options I have thought about, but am not sure which one is the best or if these are even good options:

- Finding a partner (I know this is a good option, but finding one is more difficult than I thought)

- Taking out a HELOC on my home

- Go to the beach and look for buried treasure

- Ask my parents for money (this is my least favorite ;) )

- Become best friends with Luke and Avery Carl or David Greene and Rob Abasolo and somehow that will fix everything (this is a work in progress ;) ).

Anyway, if anyone has any advice on how I should move forward, please let me know! I don't want to wait 2 years (as apparently that is how long most lenders say I need to be at a job before I can get the particular loan I want) and I just want to get out of this analysis paralysis! I am ready to jump in! I am ready to get started in my STR journey!

Thanks in advance,

Brandon

It looks like under their FAQs at the bottom of the bootcamp signup page it says the following:

Q: I can't make the weekly live sessions. Will they be recorded?

A: Yes, all of the live class sessions will be recorded and posted in Google Classroom the next day.

Hope that helps!

Zachary, I am in the same boat... I was just checking what time everything is going to start?  To my knowledge, it starts on the 24th, right?  But I was checking my e-mail and anything here on BP to see what I need to prep for.  That is how I found your post.  I don't have any e-mail or can't find anything on my account here on BP.  Let me know if anyone has said anything to you about it or if you find out anything, thanks!

Good morning Blaine!  

I may not be the person to really chime in here as I am a rookie myself. I actually have very similar goals as Chelsea with a mixed portfolio of STRs and LTRs and even throw is some MTRs and some syndications. I have been sold by Avery Carl who appeared on the BiggerPockets podcast episode 364 and the BP Rookie Podcast episode 122 who also has a diverse portfolio of STRs and LTRs. She however recommends starting with STRs and even wrote a recent book on it called Short-Term Rental, Long-Term Wealth. This book is published by BiggerPockets and is STR real estate gold! It is very well written and goes into detail how to manage your own STR from afar (and I mean like another State). One thing that caught my eye in the book is she said once you have all your systems in place (which she teaches you how to do in the book and even through her company), you should only be spending roughly a half an hour a week per rental you own. The other thing I like about STRs is the cash flow. They produce a larger cash on cash than an LTR as long as you find the right market. If you are really curious about STRs, I recommend the podcast episodes I mention above. I myself have been sold to start with STRs. But, I also love the idea of owning STRs and have stayed in several myself. I have also been studying it for quite some time, so it wasn't a quick decision... though I kind of whish I would have started years ago ;). Good luck in whatever you choose!

Chelsea - I am also starting my STR venture in the Smoky Mountains! I have been approved for a loan and am on the hunt to find my first STR. Good luck on your goals!

I am looking at some land in Eastern Texas that I plan to put either a cabin, tiny home or a cargo home to be mainly used for an STR. I have never purchased land before and am not aware of how financing works? With some quick google searches, it looks like I may be able to finance land, but it looks like a hefty down payment is required. Any advice from others who have done something like this before?

I am assuming that if I put a cabin on the property, I may be able to get a different type of loan, but if I go the tiny home or cargo home rout, there may not be any financing options?

Has anyone ever bought property for the purpose of putting cabins or tiny homes used mainly for STRs?

Hello Calena!

I am by no means an expert, but I just bought the book by Avery Carl: "Short-Term Rental, Long-Term Wealth," and it is amazing! STR real estate gold! If you want to learn how to manage a property yourself, this is the book for you as she does well at giving steps to accomplish this. But, like Debbie Boman said, some management companies can make you more money as they understand the process and know how to price it. So it all depends on how much time you have to dedicate to it. There are national companies out there that charge less (Vacasa - about 18%, Evolve - 10%) than local management companies, but sometimes these national companies have a bunch of random fees inside the booking that make up the difference and seem to not provide as much good quality (and sometimes honest) service. You get what you pay for. But I have read some forums where people were happy with their service.

If you did go the management rout (as far as hiring someone), I would recommend using someone local or close by that knows the area. I am not sure how to refer someone on BiggerPockets as I am still young in the posting game, but I have seen Collin H. post some info on some STR forums and he is a Property Manager from Gatlingburg, TN. He might be a good person to chat with!

In any case, I still recommend the book by Avery Carl... game changer.

Thanks your Avery for answering my first question and for the list of places to invest!  I really appreciate that!  

So, when scheduling a consultation with The Short-Term Shop, are we suppose to have in mind where we want invest?  Or can I give my budget and the kind of property I am looking for (i.e. cabin) and someone could help find a possible investment?

I know for me, I have analysis paralysis and just need someone to say to me, "This will work, go for it!"

Good evening Avery,

First, thank you for you book. I just got it in the mail and am already half way through. It has already answered some questions and helped me and my wife decide where to start investing (as far as STR vs LTR). My question is:

If I am not sure where to invest in a STR, can The Short-Term Shop help me find a market/STR that they believe will be successful? Should it be somewhat close being a first STR for a new investor?

I know this can depend on someone’s budget, and the investor needs to ultimately be the one to make it successful.

Thank you for your time!