All Forum Posts by: Heidi Kenefick

@Kristin Solbach

I'm doing exactly this strategy in North Carolina. I have 2 STR. They aren't fancy but they preform well and I'll do two cost segs this year.

To share some numbers- I bought one in 2022 for $230k (I went over asking and that was a mistake), but got 28k in repairs paid for by the seller and then I put another $42k into it for upgrades. New hvac, floors, paint, new counter tops. Nothing too fancy. I rented it by the room but then converted to a STR in Nov 2023. So the cost seg will be for 2024. It's on track to do over 45k gross as a STR with current bookings, but may end up closer to 55k as I get mostly last minute bookings (a lot from contractors needing a big enough space to house their crews).

I bought another one this year for 140k, and put 25% down and then spent 5k on furnishing it. It’s smaller, a 2 bedroom 2.5 bath so doesn’t command as much per night. It did 3k the first month on Airbnb but I think will settle in closer to 2-2.5k/month.

Once I do the cost segregation studies I'll recoup my down payment in tax savings alone. I used a HELOC for the DP so the cost segregation studies should clear the HELOC debt.

I would avoid the expensive over saturated tourist markets and go for towns which have universities and hospitals. If my STR doesn't fill with travelers, it does fill with travel nurses. Yesterday I had a 3 month inquiry for 10k. Now, I'll discount that to seal the deal, but just trust that there are places to invest where the numbers make sense.

@Sharad Bagri

I live in NC and there is very rapid growth here. New construction, residential and commercial buildings are going up everywhere. I invest in the city I live in because I know it well. It's a tertiary market, but has multiple major employers, the largest hospital in the state, and a university. I have both STR and LTR here, and my STR does as well as properties at the beach.

Long term rents are not as high as Raleigh, however, the cost of entry is much lower. You can still find the 1% rule here, and with all the revitalization and new construction I think things will appreciate well, especially in the next 3-5 years as there continues to be growth. Your can still buy townhouses for under $150k in good areas which will rent out well. New construction SFH starts in the 300's and while those won't meet the 1% rule in the first few years of ownership, they will eventually and the lack of maintenance keeps costs down.

Hi,

I’m considering a partnership with my next rental purchase, and this would be my first partnership.

Do you form an entity for the property such as an LLC taxed as a partnership before acquiring the property? If so, what type of loan is used? Or do you buy it in one partners name, then transfer title to a partnership after?

Thanks for the advice in advance!

@Michael Baum

Oh wow. I used my phone to open the pdf. That’s wild.

@David M.

No idea, that’s what they wrote in the pdf. A company or a certified check. Just weird. And they gave their gmail not a company email.

@Leora Merrell

Good to know. How do people profit from these scams? Like pay with fraudulent funds then request a refund when they cancel?

@David M.

While going solo sounds nice, I don’t have the traffic to get bookings outside a platform like Airbnb or VRBO yet. Definitely something to aspire to!

@Dena Beck

Yep, like if it a company check why not pay with a company credit card?? 🤔

@John Underwood

The discount thing is real, some asked me twice if I have AARP or AAA discounts. I said no, twice.

@Monique P.

Checks always seem like a scam. And the wording was a bit odd. I replied and told them to book through the app