All Forum Posts by: Eric A.

@Mikael Lickteig I have owned several properties and never used an LLC because it really doesn’t protect you in the end. What protects you is insurance, insurance, and then more insurance. Look into an umbrella policy that deals with owners of rental properties and you will be fine. You can get an umbrella policy for 5 million that is inexpensive.

@David Bergmann awesome job my friend. We have employed this strategy ourselves several times and any time you can cash flow $2000 a month and possibly pay the place off in 6 - 7 years you have hit a home run. Couple watch outs you should address: 1. Maintenance - even though you remodeled it down to the studs older homes have more maintenance. I would use a 20% - 25% monthly reserve of revenues. In saying that I don’t know if you replaced the roof, foundation, or other high priced items 2. You property tax bill will most likely increase if the neighborhood is changing for the best. Towns love to find revenue. 3. Immediately, do not pass go, immediately find out what is the current situation with STR’s and find out if you can get a permit. If it’s easy get it tomorrow. You will insulate yourself from any changing legislation. I have found in several markets that they are willing to grandfather in your current situation. Lastly, go do 5 more and retire, start a band, or go skydiving.

@Mike V. Good morning. We paid for the info from an independent source. I will see which company we used and get back to you. It was pretty expensive

@Ada Tor I was a guy who is, and was, in your shoes. Before you believe you are a high income earner please take a look at your total picture. If you are a W2 wage earner in a high state income tax state are you really a “high” wage earner or are you a “high” tax payer. When you do that analysis you might be alarmed.

@Robert Newcombe it really sounds like you have fell in love with the property. Until you take the blinders off and really assess the deal you won’t make great decisions. Good luck!

@Michael Kugler this is dumbest thing I have read in weeks. Airbnb is now 8 times bigger then VRBO and I personally have several houses on Airbnb that rent anywhere from $250 a night to $4750. Please stop talking about something you have no idea about.

@Aja Leafe-Hall it sounds like you are falling in love with properties and the overall desire to own a house there. I can tell you from my own stupidity and experience this will get you in trouble. The right deal will come just wait and be ready to go when it does.

@Sean Wilt pricing strategies and human nature have been studied for years. If you notice when car rental companies or airlines quote you a rate it’s always an upfront desirable rate and then comes the fees. Why? It’s because human nature and selection processes almost always encourage the purchaser to buy. People don’t seem to care as much about additional fees if they think their initial purchase price is a deal. So, we price our properties fairly and have a slightly higher cleaning fee and we never have people complain. Again, the end game is occupancy so play with the numbers and always monitor your competition.

@Aja Leafe-Hall if you can’t long term rent the property and have it cover itself I would not buy it. Also, always buy properties in the off season or make crazy low ball offers right before Christmas. People love a pocketful of money before the holidays.

@Derek Hookani every property you buy has to cover itself as a long term rental. If it does not then I wouldn’t buy it.