All Forum Posts by: Brendon Brooks

@Matthew Pham

Hi Matthew,

Are you in a part of the city that could make it a great AirBnB? This could get you well over that $1850 and actually could be a cash flow cow. However, it would need to be fully furnished and does come with some management. If managed properly it can less management intensive as one might think.

Other option could be renting by the room depending on your location, where you can get a solid rent and limit some vacancy risk. Once you get it fully occupied and you have only one tenant at time potentially vacate which can limit your overall vacany expense. However, this will be more management intensive than a traditional rental. Turnover can be a bit higher than traditional rentals.

Otherwise, hang on with it as traditional rental and you can manage it yourself, however I would I highly recommend you learn everything you can about self management before you get a tenant nightmare. You could also have a property management company manage it for, however be sure to do your homework on them before you contract with them.

@Jonatan Barbera

Hi Jon, I've been watching your youtube podcast "Coffee with the Jo[h]n's" on Friday mornings. You guys put out great information on the San Antonio and Texas markets and just overall REI trends and data. It's very much appreciated!

@Khang Pham

That's interesting that you did a BRRR and moved into the property. I've never really heard of anyone doing that. Nice to hear that it will have solid cash flow once you move out, that's killer!

Definitely looks like a solid deal!

Do you plan to keep going with the BRRRR strategy?

@Khang Pham

I'm glad to hear that you didn't have any difficulty find a lender to do the deal and that you got great terms.

I live in the Champions Forest area, what about you?

Good to hear that you have a solid W2 and that they allow some flexibility for you.

@Khang Pham

Nice work Khang! Way to take action and pull trigger on it and take on the GC work!

How's your property looking from a cash flow standpoint?

I'm planning on doing some BRRRR's in Houston soon and I'm curious as to how the refinance impacted the deal.

Also, how difficult was it to find a a lender to do the refi given today's economic climate? And would you be willing to share what local bank you used?

Do you have a full-time W2 income that helped during the refi process or did the bank soley rely upon the property's rental income?

Thank you in advance!

@Lionel Mosby Jr

Hi Lionel, I currently have one STR in San Antonio. Prior to COVID I had 3 STR's for about 2 years. Things were great up until late March. I dropped 2 of my STR's that were rental arbitrages. Which 1 took about 9 months to get rid of which was painful to have 3 empty houses for a few months with no revenue or very little revenue. Thankfully the one that I own and still have has had a long-term multi-month booking which has been a blessing.

I will say that a lot of supply has been reduced over the past few months. Before COVID it was definitely becoming more saturated and in late 2018 regulations were enacted that required a permit and to pay hotel occupancy taxes to the city, which also trimmed some supply slowed the growth.

@Steve Morris

Is that ethical in your opinion, if a wholesaler already did all the leg work in finding and getting a deal under contract and you go around them push the owner to breach a contract in order to get a higher price? Just trying to understand how you conduct your business? Don't you feel that is wrong and not to mention you're making a reputation as not being a trustable investor or member of your REIA?

@Anthony Catoni

Hi Anthony, you could also purchase on seller financing, which can be a great strategy depending on the terms. Obviously you have to make sure that whatever strategy you're looking to implore on the deal that the numbers pencil out.

@Tristan Walton

Hi Tristan, if you can get approved for a 0% interest credit card introductory offer for a year, this can be a viable option. However, you have to have a plan to have it paid down within a year to avoid the high interest rate. Best of luck to you!

@Haseeb M.

I recently exited the hotel industry in San Antonio where I was a Director of Revenue. The industry is struggling, however some hotels are doing better than others. These seem to be hotels that have a luxury clientele that is driven by pent up leisure demand. The midscale properties that we're strongly dependent upon convention group and corporate business are struggling the most. Corporate travel has dropped to almost nothing and may not rebound until Q2 (if they're lucky). We experienced group business cancelations through May of 2021. When preparing our revenue forecast and operating budgets for 2021 it was clear that we have a tough year ahead of us. And it may be late 2021 or even 2022 before there is significant steady demand.

If you're investor and looking to enter this space, I see an opportunity once the dust settles on the forebearances to see which owners weren't holding back proper reserves. However, I would advise caution and ensure your target market has a diverse business mix and supply is not over saturated and it is not located in an area that will be subject to harsh potential business restrictions on the municipal or state level currently or potentially in the future. I definitely also see some opportunity for shifting some hotels to other highest and best use, however that would clearly depend on purchase price, location and conversion costs and of course the city.