All Forum Posts by: Dado Vucak

@Nick Beveridge You guys don't happen to host these virtually as well, do you? I'm an out of state investor just getting started in CDA - closing on our first property in a little over 2 weeks. I would love to attend but I doubt I'll be able to attend many in person. 

Next trip to CDA is planned for 9/23-9/26. I'll see if I can push that though so I can join the 10/7 meet-up. 

@Teagan Brown pulling on an old thread here but also looking for a GC in Spokane/CDA.

Let me know if your contact is still available!

Hi @Mark Soleta I’m also looking for a GC in Spokane/Coeur d’Alene. Just curious if you ended up with any recommendations? Thanks!

@Benjamin Hanson most people that are making it in the STR space are self managing. Giving away a quarter of your monthly revenue is going to make it very difficult to have positive cash flow.

CapEx/Repairs are almost impossible to predict accurately but I would say somewhere between 5-10% is a good rule of thumb to use.

Your closing costs also seem quite  low. Usually it’s somewhere between 2-4% of the purchase price. 

Other costs to consider: toilettry, linens, automation software, platform fees. 

Have you considered self managing? I think you can definitely make it work from out of state leveraging some of the automation software we have available nowadays. It won’t be passive investing but that’s an extra $600 going in your pocket. 

One last thing, I’m curious why you ended up going with the Oregon coast as your rental market being from Houston! I’m local (ish) - 2.5 hour drive. 

Hi @Amanda Dallman! That was incredibly helpful - thanks so much for sharing! 

We’ve actually been looking very actively in Ronald - that would be our ideal location but the prices are getting so high that not many properties meet the cash on cash return that we’re looking for. 

As far as Snoqualmie Pass goes though, we own a land flipping business and we had someone reach out not long ago with a property that they are interested in selling and that got me thinking about the Snoqualmie Pass STR market. Not many properties on the market but maybe a building is an option? I know that's seldom the best approach but given that we're buying these properties off market and under market value, maybe it makes sense.

Regardless of the approach, sounds like now is the time to get in if you can! Thanks again for all the helpful info! 

Thanks! @Ash Fields 

I’m curious if there’s any fellow BP members investing in Short Term Rentals in Snoqualmie Pass. 

I ran my numbers leveraging AirDNA data and although it’s highly seasonable, it still looks promising. 

At this point I’m love to hear from others that may be investing in the area already. 

Thanks!

This is certainly a gray area but just know that there are many investors out there leveraging this strategy. 

While it will likely vary depending on your lender, most will allow you to use a second home/vacation home loan with only 10% down as long as the property is “x” miles away from your primary residence and that you maintain “control” over the property. If I recall correctly, that just means you can’t rent it out for more than 30 days at a time. And I believe the regulation is also limited to the first year only too. 

I remember calling around talking to a number of lenders when I was first exploring this option and most just ASKED how often I intend to use it. I never had to sign any paperwork stating that. 

Personally, I think the confusion exists because they say you can’t use it as a investment property but fail to clearly spell out what qualifies as an investment property while also having no regulation in the space whatsoever. 

However with AirBnB going public recently, my suspicion is that this will change at some point. 

@Joseph Bruzda very well done - the rehab look superb! Congrats on the outcome!

I'm curious though, why did you choose to flip instead of BRRRR'ing it? Based on the numbers you provided, it appears to me that you had a chance get all your money back and another $5k or so on top of that.

@Jon Crosby I see you mention APIs above.

Have you used any of the AirDNA API endpoints to do your own analysis?

Dado