All Forum Posts by: David N.

Does anyone have any experience with southern Vermont? I'm looking both around Ludlow and around Dover - so Okemo and Mount Snow. I know Kilington and Stowe are strong but I thought being a little closer to major metros might help and the info I'm finding seems to support. If anyone has any knowledge, would appreciate.

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Rutland, Vermont

Quote from @Michael Baum:

Hey @David N., I think it is exactly the opposite. COVID didn't play a role in 2023 like it did for 2020 to 2022.

Owners who bought in 2021/2022 basing their estimates off of COVID time occupancy have been sorely disappointed in 2023.

2023 is essentially back to what it should be. Many saw a huge boost in occupancy and nightly rates during the pandemic. People looking for ways to get away without running afoul of mask mandates etc. took a lot of vacations at private homes in rural areas or whatever.

Now that the pandemic is over, people are traveling in more traditional ways. Overseas, Hawaii, cruises and the like.

If you have a great place in a great area, you can still be doing well. Just not like it was a couple of years ago

@Michael Baum I appreciate your reply. So then would you say that if YoY is down that I should take it as legit that there is less money flowing into that market? Because maybe I should be looking with our friend @Andrew steffan in Florida. Florida is not my jam, but I suppose you can't argue with the investment potential and I need to put that first, over my own use of the property.

@Andrew Steffensundefined

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I just got my AirDNA membership and have been researching markets. I've noticed that for most markets, even highly valued ones, the numbers are down YoY. Is that because in early 2023 there was still a COVID and work from home impact? Or are people generally spending less money in this sector. I'm currently looking in South Central VT and it's not terrible but numbers are definitely off. Open to insights from anywhere though. Thanks! David

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@V.G Jason and Nicholas I appreciate what you are saying to Robert. I'm in a similar boat to him. I've encountered before the caution flag you are both throwing up. I don't think I'll mind being in the hospitality business but I'm sure I can't fully appreciate until I do it. Right now, I've tried to adopt a strategy that I heard on one of the Real Estate Rookies podcast, of just looking for the deals. The rest is all about exit strategy. Does that seem sensible? I'm trying to make sure I have my finances lined up and debating if I need to set up an LLC. Do I? And looking for where are the best markets to get deals.

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never mind on the part about PMI - Carl specifies that later in the book....

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Does anyone know if the conventional FM/FM 10 percent down loan for vacation properties is still available? This is mentioned in Avery Carl's book but it was published in 2015. And if it is available, can PMI be avoided at 10% or do you still have to do 20 to avoid that? Thanks in advance....

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Thanks Tim - to your last point does it work like this? Buy for $100k, add $100k in value, then refinance at 80 percent for $160k, and pay off the first mortgage and capture the extra? Of course I still have to pay that back so it’s still a loan.

Quote from @Tim Ryan:

Yeah man. You nailed it! Now you just need to find the niche for you. Over the years I've done all of it. Interestingly enough, being a contractor, you'd think flipping would be my favorite. But it's the least. I prefer the long game of LTR. I also have 7 STR but realizing it's either a lot of work for yourself, or you'll pay a lot to the manager who'll do the work. Ultimately, mutlifamily buy and hold has been the best for Cashflow, Appreciation, and Tax Benefits. And the liquidity event does not have to wait for a sale - that occurs upon cash out refinancing.

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Thanks Quote from @Michael Weigum:

Hi @David N.,

I was in your shoes 5-6 years ago. I was on bigger pockets everyday and listening to podcasts and trying to figure out my strategy for investing. I knew I loved real estate and there are so many ways to make money, I just had to figure out what I wanted to do. After listening to some pros talk about making $200/month pre door on a long term rental, I decided that I wanted to do some easy fix and flips to get started and get some quick cashflow. I made a few offers and didn't get a deal. Then I decided to get into the short term rental space. I met with an agent who specialized in Investing in oceanfront property and I got my first condo. I put it up on Airbnb and VRBO and went live. The first year, we learned a lot. Even though I'm a research junkie, I can tell you for sure that you don't know what you don't know. There are certain things you can't learn until you are in the middle of the process. Best advice I got was to have multiple exit strategies. With STR, you can use it as a primary residence, you can STR, you can MTR, you can LTR. If you own it for 2 or 3 years you can use the cash flow to purchase more. That was my plan.

I would say invest where you live, or someplace you want to visit so you can use your place on vacation. Meet up with an agent who also is an investor and start analyzing deals. Pull the trigger on one and work through a year of renting it so you can learn the fine details of the market and the property. Feel free to message me with any questions! Good luck!

Thanks Mike. I really appreciate the support.

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Also - What should I use for a short term rental calculator? Should I just use the rental property calculator included under tools? The separate airbnb tool isn't very robust. Is there another tool that you would recommend?

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Wow, thanks to you all because this is helpful. In case it makes a difference, that I do have experience with cosmetic overhauls in my own homes, such as doing new kitchen cabinets, new floors, appliances, etc...as well as updating bath and turning a regular closet into a walk-in with organizers. This advice has convinced me that doing anything more than that would be irresponsible as a first purchase, but maybe some of that might be ok and allow me to add value. If anyone strongly disagrees, let me know. With that in mind, I have a new quesiton which is what are the ways that people find existing STR's for sale? I can look on the listings but it's a bit of blind darts, if you get me. Is there a separate listing or best to just go through agents in the desired markets? Thanks, David

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All Forum Posts by: David N.

David N. has started 15 posts and replied 50 times.

Post: Southern Vermont Questions

Post: Is Year over Year data on STRs still wonky because of COVID?

Post: Is Year over Year data on STRs still wonky because of COVID?

Post: Looking for advice on STR strategy and markets

Post: 10 percent down FHA vacation loans

Post: 10 percent down FHA vacation loans

Post: Aligning strategy and goals

Post: Aligning strategy and goals

Post: Condition of STR

Post: Condition of STR