All Forum Posts by: James May

@James May

Can you elaborate on why you're having a hard time pulling the trigger? What is it exactly that's holding you back at the moment? 

Quote from @James May:

Quote from @Yiwei Cheng:

James, as someone who has done multiple short term rentals, what specific questions do you have that's preventing you from getting started?  

 Hey Yiwei, I have a few questions lined up, can I send you a DM?

 Yes for sure!

Hey @James May, lots of great advice here, but I would like to know where you are looking to buy?

If you are unfettered by kids, then I would look at doing a FHA loan on a 4 plex or something similar. No STRs to get started. You can buy up to a 5 plex and live on one of the units while you rent/rehab the others.

This will give you steady income and essentially allow you to live for free and even make a decent profit. After a year, you can refi the place into a conventional, do another FHA loan on another multifamily, move and do it again.

This way you can build up cash and have a couple of vehicles that product steady income for you. Then branch out to a STR.

This is what I would have done when I was young.

James, as someone who has done multiple short term rentals, what specific questions do you have that's preventing you from getting started?  

You wondered about who to watch and what to read to gain knowledge in the STR space. The following people have been the biggest assets to us when it came to learning and gaining knowledge! Their social media is gold!

Michael Sjogren

Justin Ford

 Thanks for Visiting

Tony and Sarah Robinson

And once you get a little deeper into STR there's Bill Faeth

It's going to be harder and more expensive than you think to get your first property launched. It will also be easier and less time than you think to self manage once it is up and going. 

As you look around, find a way to limit your competition. For us, that was bedroom count, which meant that we had to find a fixer due to budget constraints. Whether it is location, amenities, budget, bedroom count, etc., find something that does not have as much competition as a standard 3 bed/2 bath or 2 bed/1 bath house in a vanilla residential neighborhood.

Feel free to shoot me a DM if you think that I can be helpful. We launched our first place last June and are in the process of renovating and taking our 2nd STR to market. It's really hard and stressful, but it has certainly been lucrative and worth it for us. It is not for everyone, though. I tend to discourage most friends and family that ask about buying short term rentals. If you're not all in and enjoy this business, it's going to be a constant nuisance.

It’s new like anything else. I see that most new investors don’t starting investing because fear stops them. So ask yourself - why are you wanting to invest in the first place? What are your thoughts, feelings and emotions around it? If you do have fear where does it stem from? If you think you might lose money go through the exercise of what that would look like. Focus more on mindset, the mindset of a real estate investor is different. We are risk takers. To ensure proper investing we take on a calculated layer of risk (ie underwriting the deal). 

Quote from @James May:

Quote from @Nicholas L.:

@James May

if you can house hack a house that you genuinely owner occupy, but frequently aren't in... that is a very powerful strategy, because it opens up better financing with lower down payment options, but still lets you buy and run a STR. I'd look into that.

 Is there anyway you can point me in the right direction for where I can start? Who should I watch, what should I read so I can become as knowledgable as possible to get into this?

You should have a conversation with your agent. Your agent should be able to present you with properties with house hacking potential. If you have explained all of your goals to them, they should be able to point you in the right direction and get you in touch with the right education.

I've follow Robuilt, sean razditch & the real estate robinsons on youtube. Great content. Robuilt is more for "overall STR" advice. Sean is deep in the weeds when you already have one.

I would suggest joining some facebook groups for STR hosts. A word of warning though, the only posts you will see are usually horrific problems. It may sour your taste for buying a rental. Realize though that many of these groups have tens of thousands of members who are not posting their highs, only their lows or where they are looking for help. But... it's a good indicator to see if that scares you away.
Find out what really scares you or where your barrier is, then learn everything you can about that.  With a STR, there's a lot to learn. 

How do you list your property, what software do you use, what pricing strategy do you use, where should you buy, what kind of furniture do you use, sheets, towels, how do you find a cleaner, how do you manage your cleaner, who will you use for hvac, handyman, plumbing, pool maintenance etc.  How do you track expenses, manage taxes.  The list goes on... 

It's really easy to get lost in the details but they all can be handled individually and over time.  

Understand that it's a long term game. You will make mistakes your first year but they get less as you get more experience.  Your first rental is the hardest, then it gets easier...