All Forum Posts by: Dennis Bragg

Hi Sino,
I saw your post and thought I’d echo what others have said about Dominique Leal. His name keeps poppin up with great feedback... Like @Pat Aboukhaled already mentioned, he’s extremely responsive and has excellent market knowledge. That’s the kind of agent you want in your corner, especially in a competitive market like San Antonio.

While I haven’t worked with him directly, I’ve spoken with an investor friend who did. They mentioned how Dom helped them narrow down neighborhoods for a multi-family purchase and even flagged potential zoning issues before they made an offer. That kind of attention to detail can save a lot of headaches.

Are you focusing on multi-family properties in SA only, or are you also exploring other opportunities elsewhere? I’d be happy to share some insights or connect you with more resources.

Hi @Beth Reed,

Welcome to BiggerPockets! It’s great to see someone embracing real estate after an accidental start. A friend of mine had a similar journey - they turned their old home into a rental property and soon realized they loved managing tenants and exploring ways to add value. Germantown has plenty of opportunities, especially if you keep an eye on areas with improving infrastructure or schools. I recently read in Forbes that investing near growing transit hubs can offer great appreciation potential. Have you explored specific neighborhoods yet?

If you’re thinking of branching out, cities like Austin or San Antonio are worth considering, but staying local has its perks too. A client of mine in Maryland added smart home features to their rentals and boosted rents by 12% with minimal investment. What’s your vision for your next property - do you see yourself leaning towards value-add projects, or are you focusing more on turnkey options?

Lastly, what’s been the biggest surprise about being a landlord so far? It’s always fun to hear what challenges new investors tackle. Looking forward to seeing how your portfolio grows! What’s your top goal for 2025?

Hey @Ethan M., thanks for bringing these numbers back into the spotlight.. I see the original post was made almost 3 years ago, so I’m definitely curious how your perspective might have evolved given the market’s ups and downs since then. I actually got across this thread while Googling data on rent-to-price ratios for a friend who was exploring Lakeland. Gotta say, the discussions here have been pretty informative, especially with folks like @Taylor L. and Andrew sharing their insights.

Looking at your list, I’ve actually known invetors who recently ventured into Memphis and Greensboro. One buddy of mine split his time between local flips in Greensboro and buy-and-hold single-families in Memphis. In his experience, Memphis’s higher-than-typical rent-to-price ratio sounded great in theory, but property management turned out to be a huge factor-especially if you’re not local. Meanwhile, Greensboro’s market saw a steady influx of tech professionals that helped support solid appreciation. Neither path was completely hands-off, but the returns turned out higher than we initially expected (despite all the lumps and bumps along the way).

As for Lakeland, I think @Andrew Haley's observations about mobile homes are spot on. It’s not the most conventional inventory, but there’s been a fairly consistent pipeline of retiree buyers from what I’ve heard. Some folks in my circle also invest in other places like San Antonio or Phoenix, capitalizing on strong demand for workforce housing.. From what I read in The Economist, these Sun Belt regions often see steady population growth which can drive healthy rent appreciation. If you do pick a market with heavy single-family or mobile home segments, keep your eyes peeled for local property management teams who actually cater to that niche. One of the best resources I’ve spotted for honest property management feedback-beyond scanning Google-is checking local Facebook investor groups and seeing who people recommend.

Anyway, Ethan, since you’ve done a bunch of data crunching: have you or anyone else revisited these numbers more recently, and if so, how have shifting mortgage rates or local employment trends changed your approach?

Hi @Alex Bockey

I know this is an older thread (wow..we’re talking about a post from around 7 years ago!), but I stumbled on it while Googling strategies for short-term rentals in Denver. It’s amazing to see how much the market has changed since then..and I remeber reading an article in Forbes that talked about how travelers often prefer unique stays with great locations.

A friend of mine up in Lakewood had a client who tried an Airbnb in a condo overlooking Sloan's Lake. They had an incredible view, which attracted a ton of weekend bookings. But they had to jump through a dozen HOA hoops..eventually, the building got stricter on short-term stays.

For single-family homes, if you can snag something with a scenic deck or quick access to popular spots, you’d be surprised how many travelers pay a premium for that “living like a local” vibe. I’ve noticed property owners who bought 7 years ago in these prime Denver spots often saw their values climb nicely, especially if they managed to keep consistent bookings. Some took advantage of the new short-term rental wave that cropped up around 2019. Here in SD it's all about the ocean, mountains or both! 

If I could rewind 7 years, I would’ve personally scooped up another property near downtown...prices were more forgiving back then.

All that said, I'm curious..if you were getting back in the game today, would a condo with strong amenities but an unpredictable HOA top your list, or are you eyeing single-families for that full control?

Hey @Bob Asad, that’s a great question about co-mingling. One thing I’ve picked up from years of managing rentals in San Diego is that organization is everything.. If you’re putting last-month rent and secuity deposits together in a separate savings account, you’re on the right track. My friend in Austin was telling me how he once lost track of funds because he used only one main bank account.. that got messy real fast.

According to something I read in Forbes, many banks let you label accounts in a more flexible way. BoA is fine for this sort of setup.. but consider a local credit union in San Diego for lower fees and simpler sub-accounts from what I’ve heard. Curiosity got me.. does anyone else have a favorite strategy for keeping deposits crystal-clear?

Hey @Dan Ermolovich

Sorry to hear you’re facing this challenge...evictions are one of the tougher aspects of real estate investing, and being out of state adds to the difficulty. In Ohio, it’s true that you’ll need to file the eviction notice yourself or hire an attorney to do so. I had a similr issue a few years ago with a property in Cleveland where my property manager hit the same roadblock. I ended up hiring a local attorney who specialized in landlord-tenant disputes, and while it cost me a bit more upfront, it was worth it to get the situation resolved without additional delays.

A close friend of mine also delt with an out-of-state eviction in Michigan last year. They tried to save money by filing themselves but ran into procedural issues that ultimately delayed the process by weeks. That experience taught me the importance of leaning on local expertise, even if it feels like an unnecessary expense at first.

One strategy I’ve seen work occasionally is offering the tenant a “cash for keys” deal, where you pay them a small amount to vacate voluntarily. While it might feel counterintuitive, it can sometimes save you the time and cost of a legal eviction.

I’d love to hear from others in the forum..Have you found any creative or cost-effective ways to navigate eviction challenges?

Hi @Greg Strunak

Scaling an Airbnb business is an exciting yet challenging endeavor, especially when it comes to managing the finances as you plan to pay yourself. I’ve been down this road before, and I’d love to share some insights that worked for me and others I’ve helped over the years.

When you start paying yourself, the key is to separate business and personal finances as much as possible. Here’s a practical breakdown:

Set Up the Right Business Structure
Since you mentioned an LLC, that's a good start. From what I've read in Bloomberg, electing S-Corp taxation for your LLC might reduce your self-employment tax burden when you start paying yourself a salary. Talk to a CPA who specializes in real estate; they can guide you on the best structure.

Decide on Your Payout Method
Personally, I prefer a mix of methods. Set a reasonable salary for yourself (based on market standards) to ensure a stable income. Then, take additional distributions quarterly if the business is profitable. A friend of mine started this way, and it made his transition to full-time business ownership much smoother.

Document Everything
Keep meticulous records of all transfers between your business and personal accounts. Tools like QuickBooks or even a simple spreadsheet can help you mentain compliance and prepare for audits.

Reinvest Wisely
Scaling a short-term rental business often requires reinvestment in marketing, property upgrades, or even hiring help. I allocate 20%-30% of profits for growth while keeping enough for emergency reserves.

Plan for Taxes Early
Don’t forget to set aside funds for taxes. From what I’ve heard, 25%-30% of profits is a safe estimate depending on your tax bracket. This habit saved me from a big surprise during my first year.

The actual transfer process is simple: use a designated account for your Airbnb business. Then transfer your salary or distribution to your personal account, ideally on a set schedule. Just ensure you’re following any guidelines your CPA provides.

Finally, you mentioned scaling and eventually replacing your day job. Have you calculated how many properties or average monthly revenue it would take to reach that goal? I’d love to hear what’s working best for you so far… maybe even learn from your experience. What’s one thing you wish you had known when you started?

Hey @Stephanie Medina

You’re in such an exciting spot right now! With $135K in equity and options like flipping or investing out of state, you’ve got the foundation to make some big moves.

A close friend of mine had a similar situation recently. They had equity in a rental and wanted to try their hand at flipping. They partnered with an experienced realtor who handled most of the contractor coordination while they focused on financing and design decisions.. The result? A tidy profit, plus confidence to tackle the next project solo.

On the topic of self-directed IRAs: While they’re fantastic for gaining experience and diversifying into real estate over time, they can feel restrictive if your main goal is scaling quickly.

Here’s what I’d focus on:

Using Equity Wisely: A HELOC or cash-out refinance could unlock funds to pursue a flip or duplex without touching your 401(k).

Partnering Smartly: Your realtor friend sounds like a great resource. Flipping with someone experienced can be invaluable, especially when you’re new to navigating contractors and timelines.

Researching Out-of-State Markets: For a duplex, consider markets like Phoenix or San Antonio - investor-friendly with strong rental demand. In Phoenix, I rely on Pat Aboukhalen whereas in San Antonio, Dominque Leal has been a great resource.

What’s your gut leaning toward? The flip could build your confidence fast, but the duplex might offer long-term stability.

@Stephanie Medina

Your question brought me back to a deal a client of mine did in Chicago a few years ago. He took a 401(k) loan to fund the down payment on a four-unit building in a rapidly appreciating neighborhood. The key for him? Treating loan repayments like a non-negotiable expense while reinvesting property cash flow back into building equity. Today, that building generates enough passive income to cover his annual retirement contributions.

You mentioned taking the 10% penalty, which I’d only recommend as a last resort. Instead:

401(k) loans: They’re low-interest, and you’re paying yourself back.

Roth rollovers If you can afford the taxes now, this gives future flexibility.

Creative financing: I’ve seen clients leverage partnerships or seller financing to limit retirement fund withdrawals.

One thing to consider: real estate markets today are vastly different from a decade ago.. so opportunities may require extra creativity.

Have you looked into specific deals yet? Curious what’s catching your eye.

The world of real estate is brimming with opportunities for 2025. With markets adapting to changing economic conditions, now is the time to explore innovative investment strategies. Let me walk you through some exciting trends that I’ve observed firsthand, which could shape the future of your portfolio.

1. Build-to-Rent (BTR): A Steady Income Stream

With homeownership becoming less attainable for many, build-to-rent properties are in high demand. These communities cater to renters who value suburban living but can't or won't buy a home. For instance, a friend of mine transitioned into the BTR market in Austin, Texas, after noticing consistent rental growth. Their first project...a neighborhood of single-family homes...yielded a steady 8% ROI in its first year.

2. Secondary Markets Are Thriving
Omaha and San Antonio are two examples of secondary markets where the cost of entry is still reasonable. A colleague recently closed on a 12-unit property in San Antonio and shared that a 6.8% cap rate, combined with lower property taxes, made it a no-brainer. Cities like these offer untapped potential without the intense competition found in larger metros.

3. Fractional Ownership: Small Steps, Big Impact

New platforms now enable fractional ownership of high-end properties. From what I’ve seen in CNBC reports, this strategy appeals to investors who want to diversify without committing large sums upfront. Think luxury vacation rentals in high-demand areas like San Diego.

4. STRs in Non-Traditional Markets
Short-term rentals in areas near universities or event venues are gaining popularity. A contact of mine has been thriving with STR investments in suburban Chicago, targeting guests visiting for conferences. According to him, the secret lies in market research and meticulous property management.

5. Mixed-Use Developments with Green Designs
Eco-conscious development is on the rise. Mixed-use properties that integrate residential units, co-working spaces, and retail areas with sustainable design elements are particularly appealing. I recently toured a property in Phoenix where solar power and water-saving features cut operational costs by nearly 20%.

6. Adaptive Reuse: Turning Old into Gold
Repurposing commercial spaces into residential units is another exciting trend. In San Antonio, I worked alongside an investor who converted an abandoned office building into modern apartments, leveraging tax incentives for adaptive reuse.

The Right Moment to Act
Economic shifts in 2025 present a golden opportunity for innovative investors. From what I’ve seen in Bloomberg, diversification and forward-thinking strategies can make all the difference this year.

What strategies are you exploring for 2025? Let’s collaborate and share insights...sometimes a simple conversation can spark your next big move.