All Forum Posts by: Greg Moore

Greetings fellow investors - I bought this little beauty for education. I needed to go through the whole process of acquiring, rehabbing, and renting. I have a special place in my heart for this property. It was a labor of love, which is why I've nicknamed it the Love Shack. That process is now complete, so I'll be listing it for sale on Friday, Aug 12th for $165k, but happy to sell it to a cash buyer for $155k. It's fully rehabbed and has been rented for the last 18 months at $1300/mo. Please pm me if you're interested.

Introducing the Plant City Love Shack

@John Wilson my big lesson learned is you have to look at the rental restrictions on the Deed. Don’t assume it’s a standard AirBnB “less than 7 days” just because it’s approved for short-term renting. Many allow “up to four per year” or “no less than 30 days” etc. But a lot of snowbirds want a mint or 3 or 6. It can still be a good rental for you, but know the property restrictions and what target market would want to rent it based on those restrictions, and if that fits your numbers and your business model you’re golden!

@Yvonne Gallegos are most neighborhoods STR friendly? (eg under 7 days no problem, and it's written into the Deed, HOA bylines, and Municipality law?) Many gulf sub-markets have restrictions that don't work for me so I'm trying to find sub-markets along the gulf that do! Let's connect! TIA

@Paul - also what William said ☝🏼☝🏼 @Avery Carl is also an owner/investor in The Mortgage Shop I mentioned.

@Paul Herman the default loan from The Mortgage Shop would be a 10% 2nd home loan, and only if you don't qualify for that do you start exploring other products. They specialize in STR loans, so you'll find receptivity and counsel vs the friction you'll find from lenders that don't specialize in STRs.

@Will LHeureux I see a lot of advice to raise the rent in this thread based on market data. Market data is macro in nature and doesn’t take into consideration your property, and the nuances of the specific neighborhood the property is in. I have a rental in Hillsborough Cty FL that supposedly led the country in increased rents (24%). But if you look at the streets around my property, a lot of investors are buying the older homes and renting them below 2020 rates so they don’t end up with vacancy. My point being if the advice on here is “Market data says…” you should translate that to what it means for your specific property. My advice would be only after you have that number (up, down, flat, etc) would you then factor in the “Good Tenant” consideration. (And for me, that is worth a lot!) Good luck!

@Mike McKeown it varies by market. The standard in Orlando is 20%. In the Smokys, it’s 35%! I prefer to self manage STRs to optimize pricing and guest experience. In this scenario, I budget 7.5-10% for PM and pay it to my business.

@Charles Akinmade you can look at VRBO and AirBnB for the postal code you're thinking of buying in. This will reveal ADR (Avg Daily Rate) and occupancy. If you self manage, you're probably safe using $150/night and 65% occupancy. This means you're probably pulling $35k-$45k in gross rental income. From there you can build out your costs to determine NOI.

I agree with the comments about caution around areas that are residential vs tourism. Perhaps consider a sub-market closer to the Smoky Mtns with strong tourism. Good luck!

@Jason Young I’m done with 401ks— a decision I just made after reading three books on Tax-free retirement strategies. Instead, I plan to invest the same amount into permanent Life Insurance policies (high premium low death benefit). My goal is to have these grow over the next few years to create my own private banking ecosystem I can borrow from to fund my real estate and bypass the commercial banks. There are tons of benefits on how this approach beats Tax-deferred plans that you can read up on, including accessing this money anytime without penalties and taxes. Not sure how I missed this strategy until just recently but I’m kicking myself I didn’t make this switch earlier. Patrick Kelly’s “Tax-free Retirement” is the best book of the three I read. Good luck!

@John Underwood this is why I love BP. I hadn’t thought of that! Thanks!