All Forum Posts by: Brian G.

@Lisa Lister what annual gross revenue to purchase price ratio can be expected there?

@Seth Nichols why not repeat what you’ve already done (purchase another primary and rent out your current place) and/or house hack your current property (rent out room/s to a buddy) or next property?

@Lara Gonzalez I’m a fan of RelayFi which is a tech company that has partnered with a major bank (Thread Bank in TN) to service the business owner sector. This is not a brick and mortar option. Some people hate that. Others love it. Just hit up the YouTube to check out a demonstration and see if it’s a good fit for you or not. I don’t have personal experience with the ones you mentioned. Good luck on your search!

@Alex Kosley personally I would clear the non mortgage debt before investing further in RE to put my family in the most secure and stable financial position possible. With your income you could easily be debt free in under 2 years and get a guaranteed return on your capital. Personal choice but imo being conservative is a good thing, especially with a family depending on you. Good luck!

From a balance sheet and cash flow perspective it is both an asset and a liability. However, since a house hack decreases one's monthly cost of living the net affect is a higher overall monthly cash flow position (in the form of lowered cost of living) and a better balance sheet position over time (in the form of principal pay down and appreciation).

@Andres Rossini in the current environment you need to gross at least 15% of the purchase price per year to be profitable. So a $1M purchase needs to generate at least $150k/yr for you to be profitable with leverage unless you put down a very large down payment which I wouldn't do personally. Also, STR is a fair bit of work (it's an active biz) so you need a higher return for the hassle factor and time required.

@Kyle Smith how much did the lot cost?

@Jay Hurst in your example are most people buying the $100k property and investing the $25k with HML and/or cash? You aren't financing the initial acquisition/rehab correct?

@Spencer Davis consult Airdna, do the enemy method (this is when you look at Airbnb listings in the subject market to determine demand, pricing, competition, etc) and connect with local owners who are in the STR biz in the subject market to get a read on the current state of things. The VR space can be very rewarding in the right markets and most markets have some seasonality (some are highly seasonal) but what matters is total yearly revenue. Just do your due diligence to make sure the market you are thinking about is investable with that strategy. Good luck!

@Noah Bacon debt service