All Forum Posts by: Dominick Galinis

My general rule of thumb for this thing is, IF YOU HAVE THE SAVINGS, give it a shot. I’m sure there’s some level of demand there, and you can assess it. And if worst comes to worst, you know that you can just revert to a LTR and continue life as normal.

@Zeona McIntyre agreed on your book. It is fantastic and I enjoyed it (I got the Audible version.)

but overall to the topic, I loved it. It really got my gears turning and made me realize that I’m going to need to act fast on this if this is the game plan I want to implement for myself

Hi Natalie! 

I operate about 17 STRs in Atlanta and would love to connect 

This is a good question, but if I may ask, what’s the goal?

I see you and your wife make great money, which is awesome. Do either of you plan on leaving your careers anytime soon or have a desire to?

I ask that because if not, and you want to do it a lot longer, it might make sense to buy in Florida, and get the appreciation. But if you’re looking to exit, then it might make more sense to go for the cash flow.

There’s no wrong answer here except to do something that is out of alignment of your goals.

@Aaron Beal

I really like this question. So, you can go about it a couple of ways. Do you own any real estate yourself and if so, whats your niche? 

Something I do with some of my own clients (and i know other realtors do this as well) is I group everything together. I do STR, so i'll sell my client a STR, offer them a list of everything they'll need for their property (with affiliate links), offer to set it up for them and I also will manage it for them. Obviously this isnt something thats turnkey and takes time to do, but I believe it'll be a good way to synergize with your existing business.

You just gonna leave us hanging and not tell us how many bedrooms? Lol

Quote from @Adelle Swan:

Hi all on BP!  Some advise is greatly valued please.  Anyone who has experience and who can offer sound investment advise.  I have access to a great lender and now the only thing is to buy the property.  The RIGHT one of course.  

I am looking at either a single family home to do STR (for max. income and cashflow) or a Multifamily LTR (triplex and up to even 12plex etc. ) In all circumstances the deal must work and everyone needs to get paid each month at the end of the day of course.

But what would you recommend is a better deal to start with to ensure I start of strong and well ? (all properties we look at will pass the BP deal analysis and check all the boxes for positive cash flow , COC , ROI, 50% rule etc.)

A) A SF doing a STR ? (to hold and is a start to our property portfolio.  A friend is doing this near my area and is making roughly $8-10K p/m on each of his 3 properties recently bought & rehabbed to high end finishes).     

B) A SF , Rehab and Flip? (to make a profit and gain more cashflow) and then do another. 

C) Multifamily of any kind, Rehab and LTR ? (to hold and again is a start to our property portfolio and for long term appreciation) . Here I will make a $350 COC return each month for example on a deal my son and I currently ran on the deal analysis. I am not too phased making money on this property now, as long as rest assured I know the lender and the down payment pvt. lender and all the holding costs etc gets paid each month for the length and longevity of this deal. Later on in 5 or so years I can sell the property or I can retain it, settle everyone or instead draw equity out of the property later on and find another great investment.

Thank you so much for this great Forum and in advance for your input!  Happy Investing ! 

God Bless ,  Adelle

 Hi Adelle!

first off, congrats on trying to make the first steps into the world of real estate. It’s going to be a wild ride, for sure.


I would definitely say for your first deal to steer clear of fix and flips on your first deal. Unless you have prior knowledge in the field, it could probably lead to more harm and headaches than good. 

Now, for LTR Vs STR. For your first deal I would ask you, what is your current living situation and would you be open to doing a house hack? I think the benefits of HH are immense and is truly investing with training wheels. If that's not in your wheel house, whether due to your current lifestyle or what have you, I would ask, what do you want to do? My first property (outside my househack) was STRs because I wanted the quicker cash flow so then I could scale my LTR portfolio. But that's just my preference. Some would recommend doing the LTR because it's a bit of a safer play atm with the recession looming and all of that. But, overall I would say it depends on your goals and what you want out of real estate

Quote from @Kevin Pillow:

Quote from @Michael Baum:

It is an interesting article. I get the feeling that most of the horror stories occur in large cities when guests are involved.

The biggest takeaway I have is to keep doing what I am doing the way I am doing it. Professional cleaning, regular maintenance, clean communication with guests, 3 day stay minimum and no instant booking.

 This exactly. Focus on what’s in your control and don’t let external stories change your focus. I’ll read the article now but it just seems like another hit piece.

Agreed. The thing about renting to people, some of them generally suck. Doesn't matter if it's LTR, STR, or whatever.

Quote from @Michael Ngatia:

Hi bigger pockets family,

Who's as excited as I am.....just watched a couple of episodes off the podcast and  ,what would it take to make $100,000  a month passive income?

regards,

michael

Hi Michael,

I love the enthusiasm. Don’t lose that. But my question for you is, why $100K/mo? Yes, that’s a ridiculous amount of money, but what is it about THAT number that gets you excited? 

I would also press you to find out what number is it for you that will get you out of the rat race? I think that should be the first goal, and then you can go from there. But that’s just my 2 cents 

Quote from @Adam Schooley:

Quote from @Melyn Main:

Quote from @Adam Schooley:

@Melyn Main you have several options. If it's your primary residence you could do a refi to pay off the high interest debt that you mentioned and wrap it all up in one payment at a lower interest rate. If you need the equity to buy you next property then do a cash out refi or do a HELOC that you can use and pay like a second mortgage. I live in Davie about 10 mins from you and I just closed on my HELOC about a week ago. I'm going to use it to buy more properties. PM me if you have more questions.

 We were told by our mortgage bank that Refi as a primary mortgage is not allowed unless you plan to live on the property for at least 12-months; it's possible to later (like 3 or 4 months later have a "change in life" situation) that causes a change and forced you to move. The HELOC is one thing we considered as well, but then we'd need to decide if the numbers work for us or not for rental. I think that is our next step is how to decide can we truly get enough rental money from our property to safely make this a rental. Also, there is the Airbnb route, but we'd need to add a pool for that, and that's completely foreign to us as well. Thank you for the offer to talk.

You’re welcome. I don’t think you need a pool for Airbnb. You might make a bit more on your nightly rate but it’s not a must. I don’t think the return on adding a pool will be that high for you. 

Just wanted to chime in about the pool. You're 100% correct. It'll definitely cause the ADR to go up, but from a COC% for the pool itself, not really worth it. Not including the time it'll take to actually build the pool where you could be profiting off the house.