All Forum Posts by: Jennifer Stammberger

@Jennifer Stammberger, for estimating a deal I use 5% vacancy, 5 % maintenance, and 5% cap ex.

However, if I am rehabbing the place which I do because I do BRRRR deals, then I can cut down on the maintenance a little because since I'm touching everything to start fewer things should break initially.

When analyzing deals I use that 15% number though KNOWING that I can DO BETTER than that estimate. Not only can I beat my maintenance number, but I can work to beat the vacancy number. 5% vacancy for me allows me to have a tenant leave every 2 years and I work to do better than that.

If tenants leave every year that is pretty bad! If you budget for tenants leaving every year its hard to make money especially if you are using a PM or even just using an agent for tenant placement because you are paying for that with every turnover as well!

Realize when you make these estimates that you have some control over how the actual numbers turn out as time goes on. If you grow to a number of rentals and work at it things will even out and as you become proficient you will feel confident that you can meet or more likely do better than those estimates. 

Hi Jennifer, have you poked around at Hilton Head Island yet? I have several short-term rentals down here & am an STR expert in the area. My best property was purchased for 850k, then put 400k in(1.25m total). Year to date for 2023 I am at 210k gross w 68% occupancy. Heres the listing. https://www.airbnb.com/rooms/6...

Feel free to reach out with any questions.

Best,

Charlotte and Raleigh, NC are two of the honest markets in the country! Charlotte is ranked #1 Hottest Market in the US by Zillow for 2023 and North Carolina / South Carolina were ranked #4 and #3 by Forbes for top 10 states people are moving to.

https://www.forbes.com/home-im...

Especially with Apple moving their head quarters to Raleigh- there will be a lot of people looking for Long-Term and Middle-Term Rentals while they look for homes. Also heard the Lowes Corporate will be moving a lot of people from Texas to their Headquarters location in Charlotte (Mooresville, NC)

I hope this helps!

Hey Jennifer, depends if you're looking for appreciation or cashflow. Given your current portfolio it sounds like you may be leaning toward some cashflow plays next.

Most folks in this camp are looking toward Ohio and Michigan it seems. I'm in California and have been heavily focused on cashflow investing. As a result, I own 12-doors in Detroit. I've also seen extremely strong appreciation there as well, largely due to all the revitalization happening.

Happy to chat about the Detroit market if you're interested. I also work with OOS investors to help them get started there.

@Jennifer Stammberger

Cincinnati, OH. Recently has got more inventory, which it previously didn't. Mix of both cash flow and appreciation, and some areas change between heavily being cash flow and appreciation friendly. Let me know if you are interested, I would be more than happy to show you anything you like!

Here are the major considerations in evaluating different markets:

• Your budget: are you looking to buy under $200K, $200-300K, $300-500K or higher? It can help you create a short list

• Population growth, employment growth, wage growth, composition of business types are the most important factors in the health of the market. There are many analysis, charts out there. Specifically. places where the millennials are attracted to are interesting as they are becoming the biggest renter and homebuyer group

  (Note: Be careful with 'historical' data. The top growing markets in the last 2 years are unlikely the most sound choices. Good examples are Austin and Phoenix. Try to add the futuristic lenses into your analysis whenever you can. In the ideal case, there be a "new California" emerging somewhere in the next 10 years. But to be frank, CA's trajectory is impossible to replicate as working remote has become more prevalent, companies more “decentralized”, and more people think about not just professions, but also lifestyles these days).

• Are you able to find trustworthy realtors/PMs or even service providers? Do not get into a market before you know whom to work with. Many investors interview many to find the best one. In my case, I started in the Houston area as my friend had very good recommendations for me. So use your network to get more ideas!

• Run the numbers to understand the cash flow, and pay attention to the major cost such as the effective property tax rates. It typically range from 0.5%-2%+

• Rental regulations as some States are more friendly to renters while some more friendly to investors

• Distance to you. If you find a good area 2-5 hours drive from you, it’ll be easier to meet your team and check out the properties in person

• Certain hazards or costs that you want to avoid. Drought, flooding, snowstorms, tornados, just to name a few

  
  

States that are popular these days: FL, GA, NC, TN, OH, TX, IN, AL