All Forum Posts by: Jon Crosby

@Sam G. 

Median Home Price Growth by City:  https://www.zillow.com/researc...

Job Growth by State: https://worldpopulationreview....

Getting job growth at a more granular level is likely something you would have to dig into the county or city sites for data.

Best of luck on your journey! 

Yes, property managers will be happy to manage your remote properties for you but usually at a very high rate, sometimes as high as 50% of your gross revenue, so I prefer to remotely manage but making sure I have a great housekeeping service as my eyes and ears when possible. But to be transparent, my properties have never been more then a 2-3 hour drive from me either...but I know several out of state STR owners who are happy to just fly in if there are any issues so long as it's only a 2-3 hour flight.

Great question @Ceasar Ancheta!  

Assuming you can get a low enough HELOC rate on it, I would personally explore using the HELOC as a revolving line of credit as it has more flexibility than a refinance would. You wouldn't pay any interest until you actually use it and if you decide to do a BRRRR strategy you could possible keep 'going to the well' with it to acquire more and more properties.

Best of luck! 

@John B.. 

You might want to ask this in the short-term rental forum, but just really quickly (as an Airbnb owner).  They are night and day.  

Short-term rentals are much more work and much higher Op Ex as you are paying for everything (cable, lawn, pool, electricity, furnishing, post and pans, linens, etc.) but they also bring in (usually) a much higher gross income.  They are much more of a micro-business then a long-term rental which are arguably more of a 'set it and forget it' model until the lease expires.  

The short-term rental has different cash flow calculations to model against vs long-term and you have to think about making sure you are providing a 5-star experience which drives great reviews which drives higher search results on Airbnb/VRBO which equates to more bookings and thus more revenue....so once again...night and day difference.  : )

Cheers!

@Mike Masland. 

You sort of answered your own question, it's all about the team and 'boots on the ground' in that area you have at your disposal.  I have heard plenty of horror stories of buyers rushing in and just acquiring a team with little due diligence and also plenty of success stories of remote renovation and rentals because they have an awesome team in place.  

Don't rush into anything and build a team first you can trust by getting lots of a recommendations in that area to start with. You might also want to look at some turnkey options if that area has some with good reputations, that will save you the reno part and get you cash flowing right off the bat if the numbers work.  

Best of luck!  

@Kyle Stueven  Sounds like a very tempting deal but I agree, that is a LOT of debt to deal with and sounds like no room for any potential cap ex that might pop up...which sounds like would put you into more debt if it does.  Maybe find a partner to go in with for another $20k and split up some of that risk? You would then have the $20k for reserves at least.  

Best of luck! 

@Robert Walmsley. Try US Bank, they have some of the better rates, but yes you are correct it might be tough for investment property, but also surprised you are getting those rates for an investment property so who knows.  I had some luck with US Bank in the past though.  

Hi @Robert Walmsley!  Sounds like we are neighbors, so I will just give my 2 cents on this one.

You are 7 years into a pretty decent loan rate, so resetting the amortization is going to be 'annoying' either way. Why not just get a HELOC and use your equity as a revolving credit line to acquire (and then hopefully quickly payback) new investment properties? Get the flexibility to use the capital when you are ready (likely in the next 10 years) and if you can find a fixed rate you are golden!

I agree, good deals are tough right now, but hopefully that opens up in 2021 when forbearance start expiring and having a nice low-rate revolving line of credit available might be a good option? 

Best of luck! 

@Demjan Van Der Kach 

I'm not an CPA or tax attorney.  But there is an old saying..'don't let the tax tail wag the dog'. 

Focus on acquiring successful, cash flowing properties, providing quality housing for your tenants or guests and THEN focus on maximizing your tax benefits.  Real estate investing should be about releasing you from the shackles of your W2 job, not tightening them.

Best of luck

@Chris Kornbrust. 

Very impressive getting to $100k in savings!  You are light years ahead of where I was at your age so great job!  Try not to focus on the ''millionaire' status though so much is my advice.  In 10 years $1M is going to mean something completely different than it does now, it already does from when I was your age actually.  

Try to focus on how many lives you can impact with your investments, how many people you can house and create better lives for...the money (and your happiness) will follow that.  Read the book the 'Go Giver' for inspiration. 

If you must think monetarily, then focus on getting a 10% return on that first $100k for a few years and go find a mentor to help you figure that out.  If you can do that investors will give you money to make them 10% and then eventually you will have your millions from that path sooner than later.  

Best of luck to you and once again, amazing job saving!