All Forum Posts by: Britney Allan

Quote from @Dominic Pizzi:

Depending on how you plan to finance the property (your own money or by using a lender/conventional means) the HOAs of a condo are going to kill your margins. If it is your first one, I would strongly suggest a long term rental so you can understand the ins and outs of a rental property. Air BNBs/VRBOs are profitable if your occupancy is high, and you will need to shell out funds to take good pics of the place, furnish, all of that jazz. 

I think LTR for the first one would be your best bet!

 Hi Dominic! Thanks so much for your insight and feedback! 

I agree on the HOAs being more of a hassle than not. I do also agree and appreciate the suggestion on taking on a LTR first. I think that is where I am headed. 

Thanks again!

Quote from @Kerry Baird:

Who is your avatar guest?  I am near the beach in FL and have a 3, a 4 and a 5 bedroom.  They are booked year round, largely from people who drive from the Atlanta area. I get folks from other places, too, of course.  Families tend to be my main focus.  I get people who drive from out of State to play softball, people who work in for Space X and recover rockets.  But mostly folks who come to the beaches for fun and relaxation.  Who is coming to your place, and why are they there?  

 Hi Kerry! Thanks for your response!

Hypothetically speaking, the IL locations I chose are near the University, I am very familiar with leasing by the bed space/student housing, therefore my primary focus there would be to target college families that come in to town for their students for graduation purposes, sporting events, etc. Along with the potential to be open to housing students themselves (even though, the damage based on my experience can be catastrophic). The other location I listed in STL is based on my proximity and the landmark attractions in the area. There are a lot of fitness related businesses I am intertwined with in this city and know that fitness individuals are continuously visiting this city. 

So in your experience, it seems that an actual SFH would be the better choice as it would be in my best interest.

Quote from @Michael Baum:

Hey @Britney Allan, for STRs, there is a lot depending on the location. Where you are thinking of, I would think a SFH would be the best route.

I don't like HOA's either and I don't want to have to deal with them

Why those areas? Because they are closer?

Hi Michael! I chose those areas based on my current location and proximity and where we will be relocating in the near future. 

I have to agree after reading all these responses, I do believe it is safe to say, staying away from HOA communities and starting off with a SFH instead is the better route for me at this point. Lots to consider as I continue to learn as much as I can before I am able to make my first purchase. 

Thanks for your response!

Quote from @Tatum Littleton:

Hi Britney, that's a great question and very personal and unique to each individual. Personally, I like the LTR route, it works best for my wife and I and the things we have going on, but that's not to say we won't try STR in the future if things change.

We have asked ourselves and will continue to do so (and I would encourage you to do the same) these questions. Do we want to put in the work to turn over the Air BnB? Do we want to pay a property management company to do that? Is our market suited for an Air BnB or can it be supported or would LTR be more safe? What is the difference in incomes you could have for LTR v. STR? What are your overall goals, cash flow, or appreciation? How much capital do you have to make your STR stand out and make it one people want to be at?

Of course, this is not all nor the only questions to ask yourself, I would say to really weigh what you are willing to spend and maintain for STR v. LTR.

HOAs are a hassle and you have to be particular about where you have your property based on what they would or would not allow. I particularly stay away from HAOs altogether and only have to worry about city ordinances and rules. 

As far as which type of property, again, what are your overall goals and how much do you want to worry about? Obviously, if you can afford to pay someone to take care of it, more power to you and you have more flexibility. 

I hope this is at least a good start to help evaluate how you will take your next steps! Good luck on your journey! 

Hi Tatum! Thank you for your insight! These are questions I have been continuously asking myself. Based on the responses I am getting, it is safe to say I am now leaning more towards a house outside of an HOA community in a desirable vacation area for STR purposes.

Most of my funding to start will more than likely be lender financed. I am very handy myself, and have plenty of experience with repairs, flips, design, etc. My current location (Mid-MO) doesn’t seem to be the most favorable for short term rentals versus where we will be relocating to in the future. 

Thank you so much for taking the time to provide your feedback!!

Quote from @John Underwood:

So it depends on a lot of factors.

Location, views, sleeping qty/ arrangements, amenities etc 

I would recommend a house in a non HOA neighborhood.

A vacation destination would be my choice over a house on 4th st.

 Love this point! Thank you so much!

Quote from @Dominic Pizzi:

Depending on how you plan to finance the property (your own money or by using a lender/conventional means) the HOAs of a condo are going to kill your margins. If it is your first one, I would strongly suggest a long term rental so you can understand the ins and outs of a rental property. Air BNBs/VRBOs are profitable if your occupancy is high, and you will need to shell out funds to take good pics of the place, furnish, all of that jazz. 

I think LTR for the first one would be your best bet!

 Thank you for your response! I appreciate any and all feedback!

Looking in the near future to get my first investment property and leaning most towards going the Air BNB/STR route. Is this even the best route? Or is LTR better in your opinion?

I am wondering which property type is best for this route in terms of success and the least hassle when it comes to things like HOA's (As I know a large portion of HOA's are not friendly to this route).

Which property type is best? Condo, apt, or house? I am leaning towards Condo, but worry about HOA's.

I am looking in the STL, MO and Naperville/Champaign, IL areas.  

@Will Pieper

I’m actually more interested in Columbia, that’s where I live. I have two flip houses we are working on. One in Jeff and one in Fulton!

I’d love to see what options you might have!

@Ryan Reddy one more thing- don’t spend a ton upgrading features that could easily just take a “facelift” instead. Cabinets can often times just be painted and you could redo the countertops with epoxy or even do concrete countertops.

This might save you a few bucks as well!

I know a ton of rookies ask this same question: should I buy a SFR or MF?

I’m mostly curious how you all are finding deals around the Mid-Mo area, specifically multi-family properties. I have a good amount of property management experience, so I’m not afraid to start with a duplex or triplex. I want a rental property to hold for additional cash flow.

I've looked some on Craig'slist, but some of these deals seem SO sketchy.. I'm not sure how to trust these ads, or what to look for to determine whether it's worth even reaching out? I'm a member of two MLS boards, but the deals seem scarce there, too.

But what do you find has a better cash flow?

Which type did you start with and why?