All Forum Posts by: Collin Chan

You can try to leverage the appraisal gap as well with a Heloc or PAL that you can pay off over time to extend your CoC return. If you had another property, you could close with a hard money loan and then refi cash-out from that other property to pay off the hard money lender. Given that you are a rookie though I'm not sure you have these options.

Ask a friend or family to give you a loan that you can pay back over time?

Collin

Try looking at Midterm rentals as well?  30 days min as remote workers are looking for these options since nightly rents are too high.

You can also find a local realtor or STR host that has experience in the market that you are looking at. They usually are more in touch with all the news/regulations and upcoming changes. Also, regulations can vary by neighborhood and realtors focused on STRs should know which communities are more friendly to STRs than others.

It depends on the customer base.  Do they have kids usually and would a game room help in this case?  Small theater especially in a dark basement could be good to cater to families looking for a space for kids to have fun while the adults are upstairs.  Projectors and screens can be done for a relatively low budget and buy a used PS4 with some old games and either a Roku or other dongle for streaming.

Also, think about beds in common areas.  Futons could help with adding additional beds and potentially increasing your $150/night to $200/night.

Collin

Welcome back.  It's a great market and lots of potential still.  Let's connect!

We thought of adding local artist work to the STR like you see in some restaurants. We can feature their artwork instead of paying and you could add price stickers or a QR code for them order. This way you get free artwork or pictures for your home and potential referrals if guests want to buy them. Works well if your STR is in a community where nature and landscape are a part of the draw.

Not sure if this is in the right forum unless you're option 2 is related to STRs? Looks at your CoC returns for the 200k in different areas. Austin and Raleigh I haven't seen on many STR discussions but they could be. Seems like you don't have enough for 20% down and just running some basic calcs your PITI to own in San Jose is going to be around $6500/mo vs $3000/mo to rent.

I'd personally keep renting (and am renting now), and invest that money to cashflow which will cover your rent and free up more of your income to invest.

There are a lot of companies offering "cash offers" for a fee as mentioned.  I haven't done it but know a lot of people who have done it and said it's the only way they could buy a house in some competitive markets.  Easy to find the companies if you search "cash offer for homes" in Google's search bar.

Nice!  Project is moving along quick.  Looks great!

Is there a shortage of STRs in that area?  What businesses are there that might need short term housing other than vacations?  Be creative like @Paul Sandhu and you can still make a lot of money from STRs not in vacation areas.