All Forum Posts by: Greg Schuricht

This is the language for time-sharing in the CCR:

The term "time sharing" as used herein includes any agreement, plan, program, or arrangement under which the right to use, occupy or possess the Unit, or any portion thereof, rotates among various Persons on a periodically recurring basis for value exchanged, whether monetary or like-kind use privileges, according to a fixed or floating interval or period of time for thirty (30) consecutive calendar days or less.

I think the verbage "periodically recurring" is key here. To my understanding, in order to be deemed a time share it needs to be a recurring stake in the property (i.e. - the time share owner gets access to it every November). In my understanding, this is not the same thing as a true STR as the occupants don't pay for recurring rights. Someone correct me if I'm wrong though.

Regarding leases, they are only required for any rental agreement 30 days or greater. Not totally applicable to STR, but could come into play if its rented on a medium term basis.

Hey all, I'm looking to invest in a townhome/condo as an STR investment.

I'm exploring a particular HOA and reading through their covenants, conditions and restrictions (CCRs). I see some paragraphs that talk about "Leasing of Units" and "Time Sharing". All I've been able to take away from the document is that the HOA wants to have copies of all executed leases, and time-sharing is not allowed. I've not found anything in the document that specifically talks about restrictions on short term rentals.

I tend to get lost in the weeds whenever I read through any legal document. Any tips on what else to look for? In my estimation it appears there are no STR restrictions because it is not specifically called out. I also plan to have my agent call the HOA and specifically inquire about STR restrictions.

What other sort of due diligence should I perform?

I agree you should do that.  But you can't analyze every deal.  What metrics determine which properties make it to the detailed analysis stage?

For long term rentals its the 1% rule (for me anyway).

I've read that a good metric for STRs is whether a monthly mortgage payment equals a weeks worth of revenue.

Which financial metric do you use to filter your list of STR investable properties?

@Scott Howie

Hey Scott, did you have any luck?  I'm considering investing in Cave Creek as well

@James Meyer It's not something I would do personally.  Convert that Roth to a self directed custodian and use those funds to invest in other rental properties.  Not an expert, but the penalties you would end up paying for the early distribution could easily outweigh any benefit of paying off that mortgage early.

@Dinah Tabora if it gets you started, turn key is a great way to get your feet wet, especially in out of state markets.  It kind of depends on how much capital you have to invest.  Just make sure it cash flows and you understand all the expense you'll be responsible for.

My first two properties have been essentially turn key, although not from TK providers per se.  Both were fully renovated and tenanted.  Its been a great learning experience and lower risk way to get in the game.

@Robert Matelski @Austin Tam @Brian Garlington

Thanks to the lot of ya!

Are Water and Sewer are billed separately in Cleveland?

Also, is $86 per month for sewer normal? This is on a 3/1 SFH.

Thanks in advance!

@Clint Harris awesome story man!  Inspiring and informative.  I keep getting pulled in the direction of STRs but resist because I don't want the work that goes with it.  Great to hear the success stories!