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All Forum Posts by: Cody L.

Cody L. has started 34 posts and replied 3653 times.

Post: Advice on my STR pitch and overall Rental Arbitrage advice (Alexandria VA)

Cody L.Posted
  • Rental Property Investor
  • San Diego, Ca
  • Posts 3,790
  • Votes 4,454
Quote from @Fakaradin Floyd:

1 year and a half update

Hello everyone I am back for my updates, it has been a great journey so far. Just like usual I am back to updating you all. So a lot has happened since I last updated you all, well not too much has happened, I've settled into my personal home that I bought, renovated it and for the first time in my life have a place to call home that I actually OWN!!! Such exciting news, but I will sadly be departing from this home in the next year or so as I plan to buy another home to move into or an investment property I haven't ironed out all the details yet. 

Total Revenue to date for airbnb Arbritage
So this is the part that a lot of people care about INCLUDING myself, so I've been really successful I can say that I have done a great job with researching and expanding so far, in I have made in total revenue *drum roll please*  $204,301.84 with profit averaging around 20-35%. Again I don't have the full numbers out yet because I am still learning the accounting point of things. But I have officially hit 6 figures in revenue and honestly if I wanted to I could just stick to having these 3 and live pretty okay off of 3 airbnbs I am arbitrating. Thing is I hit a wall, I want to expand in my area, but I also want to expand in other areas and I am stuck in a little analysis paralysis scenario. Even though ALOT and I mean ALOT of people on bigger pockets or friends and family have told me airnbnb arbitrage wouldn't work out I have been pretty successful even though I was pretty much self learnt without any form of joining a course or anything like that. But I am glad I took this leap.


Next Steps and future plans

I have 3 airbnbs as of right now that I do Rental Arbitrage at, and can say I am pretty good at what I do, this is my second business I created and both times I was successful and started everything with low funds and youtube being my mentor. Now I aim for bigger and better, I want to buy a home FOR airbnb but I still want to simultaneously still do airbnb arbitrage, the benefits are just too great at the moment and to be honest a lot of the money profit wise I just have been utilizing to put back into the business and further expanding, paying off business line of credit and such.

So I am not in a place to buy multiple properties in support for airbnb, not yet, more so closer to the end of next year. With the real numbers I have now, I know I can make around 250k+ in revenue with 3 Arbitrage properties, if I keep the same trend I can make another 250k+ with 3 more and that's on the lower end, so I plan to keep expanding, the thing is I am having a hard time envisioning expansion in my local area, and kind of hitting a wall when researching other areas. I want to utilize my arbitrage to obviously use for my personal life but also to create a hefty fund for investment properties later on the line. 

After this tax year, I will know exactly what I need to do to progress. I hear everyone though, buying a home for STR is the next step and it is the better choice. Soon once I have the liquid amount. Obviously there are other ways of finding funding and such but I will need to research a bit more on this.

Final thoughts

So its been a journey, I am contemplating going full-time in entrepreneurship as this is my second successful business, my end goal in life is to have the option to retire by 35 haha so I want to do everything in my power now for future me. Now that I have the proven experience, and proven numbers of this working I want to leverage the experience I have in some way friends have recommended creating some form of course but I think I'm too green for that haha I need to buy a home for STR first before I contemplate that. I do want to expand directly in my area and having more confidence when speaking to landlords but that just means my sales pitch still needs work. I do want to thank everyone thus far on this journey the good and the bad feedback is the direct reason on my success so far and I plan to be great. Will update you all in the next few months. 

I will continue to expand, and I will continue this path that so far has been successful.

(Also if you know someone in some markets that are not talked about enough that have good potential for researching for expansion would love your thoughts! Also if you'd like to connect and network with me or work with me my dms are always open!)

Airbnb listings (newest to oldest)
(Hit a snag in lower reviews haha I promise I'm a great host): airbnb.com/h/familydelight
airbnb.com/h/homeoasisfloyd

airbnb.com/h/sereneoldtownsantuary

@Sarah Kensinger
@Ika Sargeant


 Well done.  I'm contacted all the time by people that want to do what you're doing.  Almost none of them ever pull the trigger.  They get stuck in 'run the numbers' land.  Congrats on taking the steps to make it happen. 

Post: I hate having mortgages

Cody L.Posted
  • Rental Property Investor
  • San Diego, Ca
  • Posts 3,790
  • Votes 4,454
Quote from @Mark Dutton:

Hey everyone, I’m a novice investor and I’d appreciate some advice or insight on my situation, even though I know everyone’s circumstances are different.

I’m currently 27 and will soon have three rental properties along with my primary residence. Once I close on my next house, I’ll have about $900K in debt. To be honest, this feels overwhelming, especially knowing I couldn’t pay it all off quickly if I had to.

Out of that $900K, about $500K is tied to 30-year mortgages on my rentals, with interest rates ranging from 2.99% to 4.375% and 400k on primary at 6% 30 year.My total monthly mortgage payments are $5,500 on my rentals, and my long-term rental income is $6,850, giving me a monthly surplus of about $1,300. I’ve been saving that extra income for future property expenses or emergencies, so I don’t have to dip into my personal funds.

I also earn around $130-150K annually from my sales job, though sometimes I feel anxious about whether I deserve this income or worry about losing my job. Despite the income, I still feel like I’m over-leveraged.

Has anyone else felt this way as a beginner investor? How did you manage these feelings or concerns about being over-leveraged?


 I felt the same way.  But at a point, the debt is so high, that more doesn't phase you.  I currently have $115 million in loans (about $600k/month of payments).  It's so beyond what my pre-investing brain can comprehend that doing another $20m loan for a $30m property feels 'meh'

tldr:  Don't let it bug you if your goal is to have a large portfolio.  It comes with the territory. 

Post: Why do some investors allow unpermitted work?

Cody L.Posted
  • Rental Property Investor
  • San Diego, Ca
  • Posts 3,790
  • Votes 4,454

Personally I don't care of someone got permits to do something.  If it's done right, I don't need the government having been involved.  Plus, I see all the reasons someone wouldn't want to bother with a permit so I'm not going to lose sleep over their decision. 

Post: Rental Arbitrage Property search in the Houston area

Cody L.Posted
  • Rental Property Investor
  • San Diego, Ca
  • Posts 3,790
  • Votes 4,454

I used to reply, talk in DM about what we have, etc, but at this point I've given up. 95% of the people we'd talk to about leasing our properties so they could STR never moved forward (and most of those, we just never heard back from)

So now when someone reaches out, we ask a few questions first.  Starting with 'send us a list of your current portfolio and a bio'.  Since we've started asking that question, we've got no replies.  And that's saved us a ton of time.

We still have about 60 units leased to people who do STR. About 15 different operators.

@Shardea Miller My advice to you would be this:  Put together some type of presentation, designed to 'sell' people on the idea of allowing you to rent their property for airbnb.   Once you have your pitch, look for properties that are for lease by individual owners.  Reach out to them with your pitch.  If they follow up with you, follow up back.  It's a numbers game.  If only 1 in 10 will even reply, you have to make sure you're latching onto those leads hard. 

To crush it in RE , you just have to be better than most.  The good news is, most people are quite lazy.  So it's not hard to stand out. 

Post: Does owning RE question your sanity?

Cody L.Posted
  • Rental Property Investor
  • San Diego, Ca
  • Posts 3,790
  • Votes 4,454
Quote from @Andrew O.:

Good afternoon,

I was just curious how everyone handles the stress of owning rental properties?  Owning RE sucks.  I own and manage 20 units all on my own while working full time with a family.  This past year has been rough with maintenance issues and things breaking, and right when I start to think things are getting better, I have to replace 4 roofs (1 is just a carport), an AC unit gets stolen, and a racoon destroyed an attic.  From all the quotes I've gotten, that's going to cost around $45,500 and it all needs to be done asap.  I don't know how the average person could afford this.  I'm not sure how I'm going to pay for it all quite yet either.  I'm in RE for the long game, but I don't understand how people make money off of rental properties.  It is always one thing after another.


I started my RE journey while I had a full time job.  I got to about 150 units before doing RE full time.   Best decision I ever made.  I now have 2000 units and a team that allows me to focus on just the parts I enjoy (mostly the deal making)

I don't see anything I could have ever done that would bring me as much income and wealth.   

It doesn't question my sanity.  What I question is the sanity of those who want to jump in, but after years of tire kicking, never take that first step. 

Post: STR Rental Arbitrage Greater Houston

Cody L.Posted
  • Rental Property Investor
  • San Diego, Ca
  • Posts 3,790
  • Votes 4,454
Quote from @Unakem Kazeem:

I own a townhome in Houston. I've been approached by 2 ppl the past 4 months about using my property for arbitrage. Wasn't interested but now open to hearing more details. 


I get emails from people all the time from sites like zillow, apartments.com, etc saying "Do you allow commercial leases" (which is code for "can I STR arbitrage?"). Our team has a canned response that basically says "Yes, at some properties. here is a link..." etc. I'd say 99 times out of 100 we never hear back (which begs the question of why are they bothering to reach out if they don't follow up with the yes replies).

If I were you, don't seek them out.  Almost always it'll be a waste of time.  If you do get contacted by someone who is serious (with experience) then just request a large deposit to protect yourself. 

Post: House Hacking is Hard

Cody L.Posted
  • Rental Property Investor
  • San Diego, Ca
  • Posts 3,790
  • Votes 4,454
Quote from @Luciano A.:
Quote from @Andy Oshodi:

 Personally living in an area versus investing in my opinion are two different worlds. I have made more money, especially these last few years with the appreciation in areas like Third Ward/5th Ward/EADO than investing in safer areas like Katy, Cinco Ranch, and Cypress. I remember what the 3rd and 5th wards were like back in 2010.

I totally agree.  I have bought in areas I wouldn't live.  In some of the areas you mention, the price per unit may be 50%+ less cost, but 20% less rent.  It makes it hard to say no to.

Post: House Hacking is Hard

Cody L.Posted
  • Rental Property Investor
  • San Diego, Ca
  • Posts 3,790
  • Votes 4,454
Quote from @V.G Jason:
Quote from @Cody L.:
Quote from @V.G Jason:

Welcome to reality, 3rd ward Houston is not investable. Any "ward" in Houston should get some questions going, but majority of Houston based agents will push this ad nauseum especially the one's on here and have been the better part of the last 2 years. 3rd ward for MTRs, STRs, and travel nurses and 5th ward for fix & flips; but only an idiot would buy a 5th ward property without doing their diligence. They target OOS that have no idea what the 5th ward is really like, but on a map see it's proximity to downtown and think it's up next.

Think you should focus on a solid SFH for your family if you have some money you can put down, and worry about investing when you are in a position of strength. Spring Branch, meyerland are solid areas.


When I hear "near med center", I don't jump to "3rd ward". I have some nice properties near med center (my highest NOI property, on Brompton, is near med center. As are several of mine in the 'good' parts of 77004 (i.e. west of 288). Properties on Binz, Jackson, Wentworth, etc.)

THat said, I also have properties in 3rd ward (Truxillo), 5th ward (Wipprecht).  Even Montrose is one of the 'wards' depending on how strict you use the names (4th ward I think?)

Personally I'd suggest AGAINST areas like Spring Branch, Meyerland, etc.  I'd stick to midtown, montrose, museum district, etc.  

Third ward is generally UH and the med center. I know where you're properties are, at least that Brompton one, that's just at the borderline of south West U/Rice and into 3rd ward. You're solid, but go any more east or south or both and I'd avoid. I'm not touching Truxillo or the 5th ward ones, each to their own. I'm invested primarily in the heights & airline heights(e&w of 45), a little in midtown, little in acres homes, and a little in the camp logan area. Acres home stinks, but I'll swallow it till 2035 and see what shakes. 

 Spring Branch and Meyerland are where a lot of younger millennials are moving to for family formation, so the schools will get better. Memorial is already the cream of the crop public high school.  I know a ton, not a few but ton, moving to these two areas that are trying to start families and raise them in these two areas. And builders are slowly catching up with some new devs in these areas. 

If we are talking about better areas in general-- I'd say Camp logan, heights, piney point, West U, river oaks, and parts of Bellaire are the best. Then montrose and the museum district. But all these areas are much tougher to afford. 

Interesting commentary.  Thank you.  I'm curious how you know which Brompton property I have (if we've met, or talked outside of this site, I apologize for not recalling)

I, like you, don't love the areas you're talking about where some of my properties are located.  I have a ton in south east inner loop.  However, they also make a ton as I paid $20k-$30k/door.  So if it's buy a truxillo for $30k/door, and rent for $800, or pay $100k/door in Montrose and rent for $1000, it's an easy call.  In fact, there is a building on Truxillo across the street from my current Truxillo property.  I used to own that one as well but sold it.  I tried to buy it back recently but they wanted too much.  They got foreclosed rather than work something out. 

All of that said, as I've grown, I've started to stay away from bad areas.  I just don't need the cash flow.  Or rather, it's not as important.  Now I just want nicer properties in nicer areas even if the cap isn't as high.  But that's a luxury to be able to decide that's what you want as I couldn't have done that without the 'bad area' properties helping to get me to this spot. 

Post: Syndicate investment opportunity (Three Pillars Group) - Houston, TX apartment

Cody L.Posted
  • Rental Property Investor
  • San Diego, Ca
  • Posts 3,790
  • Votes 4,454

Interesting that there are no comments from people that know these guys.  Since I live Houston multifamily RE day in / day out, I just assume others know about and comment on our little niche. 

Post: STR Rental Arbitrage Greater Houston

Cody L.Posted
  • Rental Property Investor
  • San Diego, Ca
  • Posts 3,790
  • Votes 4,454

We have quite a few properties where we allow people to STR them. I don't want to post our URL as I don't want to come off as advertising, but I can message you. Almost all our stuff is in montrose, museum, med center, etc. Mostly 1-2 bed apartments but some homes.