All Forum Posts by: Erik Price

James,

Thank you for the feedback. I look at this property as an education as much as anything. I've never had an STR before. I've had a rental property due to a military move during the housing market crash. It was a necessity rather than an investment. Of course if I would of kept the property it would be doing amazing now.

We have gone back and forth regarding opportunity cost.  I didn’t mention this originally, but we have a lot of family interested in using this property to visit.  They would get a reduced rate of course but I didn’t factor any of that into my calculation. Buying locally has a lot to do with family visits, we have some who live overseas.

I tried to be as conservative as possible with my estimates.  It looked better until I realized I’m getting crushed in points and fees.  That’s just the state of the mortgage industry right now. I’m hoping it improves in a year but I can’t take that to the bank so to speak.

Erik

Alyson,

Thank you for the response.  Those are all very good points.  The unit is currently a short term rental so it will come fully furnished including sheets and linens.  There will be some monthly expenses like supplies not accounted for but at the same time I didn’t account for the cleaning fee we will be earning.

I do plan on using dynamic pricing, airbnb, and vrbo.  You are correct that I need to account for that.

The market is definitely tough!  This is one of the less expensive properties in my area.  I only want that base hit but if this is a strike out we need to walk away!  Don’t hold back everybody.

Thanks again Alyson.

Hi everyone,

I’d love to get people’s opinions on my beach condo short term rental.

1 bedroom, 1.5 bath. 800 square feet.

All the numbers I used are taken directly from the current owners records.

I made the str income $4,000.00 a month because the previous owners were grossing about $51K a year.

This is not a home run. I’ve been thinking about doing this for years and have come to the conclusion that I am simply looking for a base hit.

My wife and I will manage and clean the property for the first year at least.  We do have the time to manage/clean and the capital to cover expenses while we learn and refine our strategy.

We are currently under contract and plan to close April 1st.

I realize that we don’t know what we don’t know so I would appreciate any feedback.

Thank you so much in advance!

Erik

https://www.biggerpockets.com/analysis/rentals/bd26ac2a-3655

Ethan Anderson I'm curious since you have experience as a USA student, do you think there is a market for Single family homes rented out to students in the area around the campus? What neighborhoods would you recommend?

So what is stopping you from buying?

My opinion on the market was formed by talking to multiple realtors in the area, as well as multiple property owners who were selling or renting their property this past spring. Also I watched Zillow and realtor.comvery closely for about 6 months. I get the Zillow market reports. My area of focus was west of schillinger in the baker school district, and I bought in a neighborhood near airport blvd and snow road. Things may be a little different in other areas of Mobile. Did you go to South Alabama?

Ethan Anderson , thanks for the reply! I'm moving to Mobile this summer and looking to get involved down there. I will be closing on my home in June and plan to rent that out when I leave in 3 years. I am military and interested in buy and hold. Seems like the single family market in mobile heats up for about 2 months in the spring then goes cold. For wholesaling I bet you could get some good deals in the winter then sell in April if you time it right.

I just realized you all have been celebrating mardi gras so I'm going to bump this thread...

Hi everyone, I was just curious how the market is these days in the Mobile area.  People I have talked to just usually say it is "getting better", but I'm not getting a ton more info.  Would you say it is buyers, sellers, neutral market?  Are things pretty steady?  Did Airbus bring a lot more activity to the area, is anything else relevant going on?  Thanks everyone, hoping to get some regional conversation started.

Hi everyone, I'm new to BP, ready to make some investments during a my next move. I've been listening to the podcasts and now im looking to the forums to increase my education. Maybe some day soon I'll have some valuable experience to help others along.