All Forum Posts by: Heather Carrow

I think to find a co-host, you should put it out there on BP or look for the active hosts in your area that are killing it & ask them if they would be interested in co-hosting for you.

I will definitely reach out! I would love to chat about properties in OCMD.

Sounds great!! Happy to help in any way that I can!

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Quote from @Frank Esposito:

@Heather Carrow - hi Heather, hit me up. We are getting out of a 15 year LTR and looking to do a 1031 exchange for a STR in OCMD. Closing in late May so timing is a bit of an issue. We haven't been in the STR market, so can use the local expertise.

Thanks!

Frank

Happy to help and looking forward to chatting with you about your next move!

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@Bob LettYes, would definitely partner with the right person. I have done that in the past and it has worked out well for me.

I think to find a co-host, you should put it out there on BP or look for the active hosts in your area that are killing it & ask them if they would be interested in co-hosting for you.

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Right now it is a little tough with the interest rates and the prices still being pretty high, but I think that prices will only continue to go up, so my strategy has shifted a little bit. I am accepting slightly less cash flow, with my eye on the appreciation potential. I do agree that if you can find something you can fix up and add value add it would be ideal. I am a realtor in Ocean City by the way! If anyone wants to be on my list for pocket listings send me a message. I am happy to send them.

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Quote from @Bob Lett:

Quote from @Heather Carrow:

Quote from @Bob Lett:

Quote from @Heather Carrow:

Hi BP community!

As my investing career has been advancing I wanted to start a thread for people interested in short term (or long term) rentals in Ocean City, Maryland and the Delaware beaches.

I have two STR's in Ocean City that are doing very well. I also have one in Bethany Beach and Lake Harmony, PA. So far, Ocean City has been my favorite market. I am also a realtor in MD & DE and have been helping other people get STR's in that area.

My goal is to acquire another property this year, but I am struggling to build capital fast enough to amount to a down payment. I have used hard money for my last two purchases and rates are so high right now that it kills most deals. What are others doing to raise capital?

Have you thought about partnering? You have the experience and team in the market, it sounds like you just need a $$ partner. yes you would give up some of the equity but it would help you scale faster if that's your goal.

I would love a partner. It would make it a lot easier to scale. I have partnered in the past, and it went well, but I would need someone that can bring some capital to the table. Do you have any tips on getting a partner?

Be as specific as you can about your goals and then try and find a partner to fill the gaps. I just went through my first partnership with a great friend of mine back in PA. It definitely helps ease the burden as everything is split 50/50.

What size property size are you looking for in OCMD? What St? I grew up vacationing in OCMD and know the area well from OCMD to Rehoboth. Some great memories from that area!

I think being specific about goals is definitely key!

I am looking anywhere in OC as long as the unit/house would make sense as a solid rental. I also love the area! I have found that units with a good view and solid amenities make for the best rentals in my experience.

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Quote from @Bob Lett:

Quote from @Heather Carrow:

Hi BP community!

As my investing career has been advancing I wanted to start a thread for people interested in short term (or long term) rentals in Ocean City, Maryland and the Delaware beaches.

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Quote from @Apollos Hill:

Quote from @Heather Carrow:

@Lauren Kormylo How is the market in Rehoboth for STR's? I have one in Bethany and the off-season is so tough compared to Ocean City. Ocean City does so much to drive tourism year-round and I have found that Bethany does not do this as much. Summer is great in both markets though!

@Sarah Kensingerundefined I like this idea. Would you be willing to share a bit about how you found hosts to allow you to co-host for them?

@Michael Baum I do have equity built up due to appreciation so that Is an option. & I did a DSCR for 2 of my properties in the past. I enjoyed the process, but rates are very high right now.

@Robin Simon one is a second home loan with a great rate and the other is a hard money DSCR loan also with a great 30 year fixed rate (thanks to the covid rates).

@Account Closed agreed it is a scary time. I am seeing listings sit longer in this market and competition is lower. I think that if you can get a deal that makes sense and then refi down the Road when rates lower it could put you in a good position when everyone else wants to start buying again.

how did you structure your hard money terms for the STR.? most lenders I talk to want thier money back in 1 year . I'm looking for 300k for a portfolio of long term rentals. thanks

I've used DSCR loans with Visio lending in the past. They work with STR's and its 30 year fixed.

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Quote from @Zach Edelman:

@Heather Carrow when you say hard money loan, are you more referring to just a private loan in general, or specifically a short-term/bridge loan (i.e 6-18 months) that is used either for the purchase + rehab or the home, or just the purchase of the home (but on a tight time frame) with an interest rate of around 9%-11% and 1-3% in origination fee? Trying to understand if you're referring to a DSCR loan or a true "hard money loan."

Hey Zach! We used a DSCR loan for two of our properties. We were able to lock in a fixed rate of 5.25% for 30 years, which was attractive. Now they are at 10% interest in this market.

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Quote from @Claudio Meira:

Quote from @Heather Carrow:

@Claudio Meira I have also seen a lot of success managing my own rentals in OC. I think the best part is that you can go in and change your pricing each day to reflect vacancies, local events, holidays, etc. Since commenting on this post 2 years ago I've acquired 2 STR's in Ocean City and one in Bethany Beach. It has been a dream come true to manage my own rentals in my home beach town. I've found that my oceanfront does very well all year while my bayside does lag behind a bit during off-season weekdays. Do you rent off-season?

I try to rent off-season but I need to lower my rates since I really don't get any rentals during the off-season.

I'm probably going to get another property either this year or next year but not sure if I will get it in Ocean City. I love Ocean City rentals. But not having some rentals during the off-season is not great.

I have STR in Berkeley Springs, WV and that gets rentals year around. On the positive, I only have to do property management during a shorter period of time in OC.

Are your rentals apartments, townhouses, or houses?

I have a friend who build a brand new house for rentals in Fenwick and I'm cohosting with him. And learning new things with that. He has already filled most of his rental days for the 2023 high seasons while I'm about 40% there. But I realize that his property sleeps 12 people which requires multiple families. So they have to coordinate their vacation plans earlier compared to mine which is generally one family. So I get my rental bookings filled closer to May.

Yes, lower rates will help you out during off-season.

I have 2 condos in OC and my place in Bethany is a house. The oceanfront condo is booked almost year-round, while the bayside condo and house in Bethany are strong on weekends but that's about it for off-season. Summer is good at all places.

I also have a place in lake Harmony, PA and it does good year-round, but I've found that at the end of the year my profits usually end up being about the same as Ocean City. Do you see that with your place in WV?

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My number one reason is freedom of my time. Passive income allows me to live life on my own terms. Other reasons are to express creativity when designing my short term rentals, and not having a limit on how much I can achieve with real estate investments!

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Denver, Colorado

All Forum Posts by: Heather Carrow

Heather Carrow has started 10 posts and replied 54 times.

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