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All Forum Posts by: Jacob Bremer

Jacob Bremer has started 8 posts and replied 18 times.

Post: What are my options?

Jacob BremerPosted
  • Realtor
  • Austin, TX
  • Posts 21
  • Votes 7

Scenario: I recently bought a home to use as a 100% vacation rental in another state. I used a traditional lender and it's a personal mortgage. The rental is doing extremely well, and I'm on track to make cover all expenses and turn a profit in the first year (bought December 2020). 


The house next to it is now up for sale, and I want to buy it. It's half the price of the one I purchased, but I am having trouble securing a loan. No traditional lenders will consider because they said I need to wait a year or longer to have tax returns that I'm turning a profit even though I have documents from the property management I'm using that it's turning a profit. I have the rental under an LLC, but banks with commercial lending said the business needs to exist for at least 2 years before you can apply for a loan.


Aside from sellers financing, which they won't consider, is there any other options I can consider? 

Post: The future of STRs in your local market?

Jacob BremerPosted
  • Realtor
  • Austin, TX
  • Posts 21
  • Votes 7

All the stars have aligned to create an incredibly bright future for the short term rental industry: a revolution in working anywhere you want, a world filled with people ready to travel again, and a new wave of young consumers with disposable incomes that value experiences over material. 

Post: Liberty Hill New construction Rental market

Jacob BremerPosted
  • Realtor
  • Austin, TX
  • Posts 21
  • Votes 7

Hi Surya,

I am a realtor in Austin and help many clients with invest properties. Without knowing a bit more about the house, I would still say this is a great game plan for long term investment. Rental comps and rates often lag a little bit behind the buying/selling market. LH is a great investment as it's still far out to get a reasonable price (for today!), but also it'll quickly get sucked into the Austin market. 


My guess would be you may eat a little at the beginning, but more tech and industry head north, that will be a very desirable area to live and rent in. 

Post: Lake House Vacation Rental in Northern Michigan

Jacob BremerPosted
  • Realtor
  • Austin, TX
  • Posts 21
  • Votes 7
Originally posted by @Melody Everett-Neddo:

where in Northern MI?  I am near Torch Lake.

Lake Charlevoix, Boyne City end. 

Post: Lake House Vacation Rental in Northern Michigan

Jacob BremerPosted
  • Realtor
  • Austin, TX
  • Posts 21
  • Votes 7
Originally posted by @Daniel Suarez:

Pretty cool! do you have any income estimates?  Also, how much are planning to pay for property management. 

The previous owners gross income was 68K last year through STR. From my understanding, they were fairly lazy about it as they had it paid off and used it for personal use fairly often. I am marketing hard and also making improvements to it, so I'm hoping for a larger profit, but will most likely be red this year with improvements and remodeling. I planned for that and is one of the reasons I put 10% instead of 20%. Based off the first 3 months of ownership, I'm expecting about 70k. However, after remodel and possible 4th bedroom addition, I would estimate my gross to be 100k. I've found that step up from 3BR to 4BR is the most significant difference in price when adding additional bedrooms.

Most property management companies take 35%. I was nervous about that putting me too far into the red, so I am managing the bookings through Evolve and they only take 10% per booking. I then have local hired help for cleaning, maintenance. I would say it's probably around 20% of my gross income this way, but hard to tell so far with only 3 months and the peak and off seasons differing so much. 

Post: Lake House Vacation Rental in Northern Michigan

Jacob BremerPosted
  • Realtor
  • Austin, TX
  • Posts 21
  • Votes 7

Whoops. I put 10% down. I have invested about $7,500 so far in renovations, updates, etc. 

Post: Lake House Vacation Rental in Northern Michigan

Jacob BremerPosted
  • Realtor
  • Austin, TX
  • Posts 21
  • Votes 7

This is strictly a vacation rental. The vacation rates are so high during the peak season or summer months, I would probably cut my cash flow 50-55% by having a lease. For perspective, summer weekly rentals are probably around 1.25x the rate it would be the entire month as a lease, so looking at roughly 5x the cash flow for 10-12 weeks.

I was lucky enough to buy it with some minor, but essential improvements that will increase value over time. We ripped out bad carpet and put it laminate hardwood throughout. We will begin to update appliances and do small updates in bathrooms over the course of the next year, which should greatly increase the property value along with the rental value.

Post: Lake House Vacation Rental in Northern Michigan

Jacob BremerPosted
  • Realtor
  • Austin, TX
  • Posts 21
  • Votes 7

Investment Info:

Single-family residence other investment.

Purchase price: $702,500
Cash invested: $7,500

Vacation rental in northern Michigan.

What made you interested in investing in this type of deal?

I have always been interested in owning lakefront property in northern Michigan. I spent my summers as a child and teenager going up there, and it's always been my dream to be an owner and investor in the area.

How did you find this deal and how did you negotiate it?

I had been looking and monitoring the market very closely for months.