All Forum Posts by: Chad McMahan

Jacksonville. They were SFH flips. Although most of my investing was in Southern Alabama and Northern Arizona

Before I was a realtor, I was a full time investor. I lived in Arizona and purchased in Arizona, Alabama and Florida. It can work (To invest 1000+ miles away), but you need to establish relationships (Property management, cleaners, etc) with trustworthy locals and stay informed and in touch. I also visited my investment areas every 3-6 months- but then again, I was flipping & renting a lot of homes.

Hi Brian. Welcome to BP. If you need advice, just ask for it- there are many experienced investors, realtors, attorneys and lenders/originators here.

I also fly out to see any property I'm ready to buy- even cheap ones. Feel out the neighborhood and how comparable properties perform.

Before I was a realtor, I flipped over 50 properties as an investor. The best thing I ever did was diversify, by buying in several strong markets. There are lots of a reason one market might drop, while others stay strong.

Good luck!

Unfortunately, I do not have any local vacation rental property management suggestions, as I live and work in Arizona. What I would do in your shoes is look up 3-6 online and start calling them and looking at their websites/strategies. Most important is your net dollar. Secondary is aggressive and effective marketing, giving a high occupancy rate. tertiary is what they charge for the service.

When you get the list down to 2-3, have them come out and see the property and talk specifics. How well do they (PM) perform with comparable rentals?

Good luck!

Whatever you decide for ownership split, make sure you pencil out ALL of the management and maintenance/marketing/cost responsibilities and break it down by what will go most smoothly. I recommend you both sign it and have a copy. You want it to be easy and effective as you'll have a lot of turnover with short term tenants.

Also how do you decide if you want to sell or upgrade the home in the future? Some things you can just decide later, but having clear expectations in place will help your working relationship to stay strong.

If it was me, I'd have 70/30 ownership. Maybe he can manage the whole thing and you split ownership 50/50. You're putting in the lion's share, so you have some decisions to make.

Good luck!

Jon, thank you for clarifying that. I have quite a few buyers of vacation rental properties and the info is much appreciated.

In my area, there are some homes, restricted by HOA's on length of rentals. Just make sure your city/county/HOA(if you have HOA) do not restrict what you have planned.

I recommend you have 2 local management companies come out and recommend a rate and strategy for rental. If you plan to manage it yourself, let them know- so everything is above board. 

Good luck!

Hi Chris. There are quite a few great vacation rental markets right now. Areas with strong appreciation and high rental rates. I cannot and should not speak of the specific areas outside of my expertise, but Sedona is doing well. If you want to chat about here or want general advice for other areas, I'll be happy to help.

Are the comps close in size? The (very) general rule of thumb is that larger properties carry a lower cost/sq. ft. Small properties carry a larger cost/sq. ft.

I find that larger, more expensive homes are a riskier business. It tends to be harder to find tenants wanting something so large and at a higher price tag. In Sedona, I advise my clients to stay between $150k - $800k, and try to ignore the more expensive (but absolutely stunning higher end) homes.