All Forum Posts by: Ilan M Aliphas

@Joe Moore

This happened to my father in the 80’s. He gave the money back and regretted it his entire life. Reason he gave it back was that it was at a bank in Mexico, so he wasn’t afraid of the IRS, his concern was that it was drug money and money needing to be laundered. So he called up the bank.

I don’t think you should have said absolutely anything. Starting by not posting on the internet. The right move is to sit on the cash. Don’t spend it, don’t touch it, don’t talk about it… they can’t put you in jail for doing nothing. Wait and see.

@David Campbell good for you man. Taking a gamble and winning doesn’t make you a good investor… it makes you a lucky gambler.

I wish I were a lucky gambler. But because I am not, I try to be a good investor instead.

May your luck never run out my friend 👍

@John Majoris

Forget about cable… and everything else other than Roku because of the Guest Mode feature. Just write somewhere in your listing to BYO Passwords and you are all set

Guests arrive, turn on tv, input checkout date, and they are all set to use all their own accounts. If anybody isn’t happy (hasn’t happened yet so this is backup plan), I have 1 sling tv account to give the guests. I don’t give the password out unless they ask as you need to remember to change the password after they checkout

Work amazing and I got nothing but 5 star reviews

I’ve always had this question too.  Since I own my rental property I figured it doesn’t make a difference — the cash is already mine and I will already need to pay taxes on it.  
But if you have an LLC I'm sure there is something to document and be thiughtful about

You should talk to Luke and Avery Carl but to answer your questions (https://theshorttermshop.com/b...)

1) No

2) you can make up for it during the high season but if you want more stable markets that make up about the same over a year look at areas like Sevier County (Smokies)

3) Very

Employers have learned how much can be accomplished working remotely.  As a result, in the post-COVID world companies will need to adapt to continue to attract talent.  The WFH Friday/Monday trend will continue to expand bringing higher demands to STRs.  Comfortable workspaces are a great amenity to provide.

On a different perspective... Many people are afraid of increasing regulations. Savvy investors can see past the regulation to find amazing opportunities with limited competition thanks to those regulations.  Napa, CA and South Lake Tahoe, CA are 2 great examples.  

Charlotte seems like a great choice right now.  If you go for 3/2 homes in neighborhoods with schools with 5+ rating that cash flow now you will do great!

In a nutshell, you should sell Seattle and reinvest in Nashville.

Here’s how you should analyze.  Ignore the past but consider the opportunity cost.  Sounds like you have roughly 500k in equity in that property in Seattle generating next to nothing in cash flow.  You can sell (no cap gains on property tax on your primary residence for the first $500k if you are married and $250k if single) and put 20% down on 10 properties at an average purchase price of $250k that can cash flow $400 - $500 each in Nashville.  You can also hope for appreciation in Nashville just as much if not better than in Seattle.

I know I make it should easy and it is not. But it is a good plan. You might end up with a few duplexes or something larger. Focus on maximizing Cash-on-Cash ROI. You are lucky to live in Nashville where you can find good deals. Shoot me a note if you have questions

Ilan

Hi Andrea,

I looked at your analysis and if you are looking at it as a STR I think those assumptions are way off. But the final result still looks promising. As an STR your vacancy rate in SPB will be about 36%. I think you should factor in a 15% management fee even if you think you'll self manage – your time is also valuable so "hire" yourself but not for free. Here's the nice thing about STRs, if you make these look like desirable vacation rentals, you can get each one of these unit to generate $37k annually ($160 per night * 365 days * .64 occupancy rate). I based those from airdna.co.

Hope this helps you analyze the deal with more detail.  If you need some help with any financial modeling let me know.  The key is make sure you can have STRs on a 4-plex in St Pete Beach... have your realtor check that to make sure or ask a local PM.

ditto on what @Jon Crosby said.  Only additional advice I would add is to take a picture of every receipt with your iphone.  Make a Photos folder for them to store and you can throw away the paper copy then.