All Forum Posts by: Brett Deas

@James Carlson How would they track if you own it in an LLC? In theory one owner could have a different LLC per property, thus making that entity the owner of each property.

Why are you looking in Myrtle beach? any special reason?

Often times those competitive markets can be really hard to get a good return, I would start to look in the sub-markets/those that are less popular to find an opportunity. 

No it isn't that bad, It's just easier to hear the horror stories than the good ones. 

There are some warning signs you can see when they try and book (No reviews, immediately asking for a discount...), but for the most part they are pretty great. 

I would always expect a little bump from market rent, since they will be putting more wear and tear on the place (in theory). 

Also be sure to vet the prospective arbitrager as my partner just had to evict one out of his place in GA who was trying to STR the place as well.

2 bedroom for me. I find most nurses travel in pairs so they need a second bedroom. It is rare I find a nurse traveling alone. 

And as a side note, often times they could be a married couple where the spouse works remote, so having the second bedroom setup for that would be smart as well. 

 I am not a lawyer, so I would recommend you get one. 

But to raise capital for a deal, especially if you are doing it publicly (outside of family and close friends), you can be marked as selling a security/investment. That is where the SEC would step in. The typical 506 structure is an EXEMPTION from the SEC, so there is no set capital requirement for doing so, since it allows you to raise money publicly (depending on the structure) without having a securities license. 

How did you measure the ROI? Where are you getting your data from for that?

I ask those questions first because some sites have very different numbers from reality. I would also say you can probably find a better return for your STR than 10%, but if you want to use it for your families vacation then it could be worth it for you. Just depends on your circumstances.

I would check out left field investors. 

I use a good amount of LP money and they are best education platform in my opinion. 

From an operations perspective, not too much changes. Since you are so small you can still run it all like you do the first STR unit but do it 3x. I would definitely do it if the numbers are better as the 3 STR's instead of long term.

One thing I would look into is tax rates for the commercial property. 9 times out of 10 hotels are taxed at a higher rate than residential. For insurance I bet you could still get away with residential STR insurance, but be sure to ask your provider before and if they say get a commercial policy you probably should. But the zoning doesn't always determine what type of insurance you have to have.

 We have them up and down Appalachia and they are all 1-2 bedrooms. Currently we don't have anything bigger than that in the portfolio.