@Nathan Gesner
Thank you for that well laid out response. We are aware of the additional expenses of STR, although I haven't run the exact numbers on it yet. I know that's a crucial step. There are a lot of automated systems out there to self manage in a less time consuming way and we would hire a cleaning crew, so although there's still the expense of the cleaning crew, I feel it would be considerably less than a property management company. I suppose once I run the exact numbers with furnishings and utilities, perhaps the income won't really be that much greater than long term rentals, but when the gross income is double to triple long term rent, it seems like it will still win even with the additional expenses.
@Luke Carl
This is the episode we listened to a while back that got us completely fired up about doing STR out of state. It was so informative, very inspiring, and she makes it seem completely possible to successfully self manage STR. Obviously she has gained lots of experience that brought her to that point, but if someone can do it, then that means we can do it too. Of course there will be lessons learned along the way, but you have to start somewhere!
@Ken Boone
I definitely hear what you're saying about passive vs active. Our goal is to have passive income for sure, but our immediate goal is cash flow so I can quit my current job and have all of my time to build our portfolio and acquire more assets. I think in a year, once we have reached our first goal of $2000 a month of cash flow, then we will start shifting things to focus on making everything as passive as possible. What we're thinking now is that with STR, we can reach our $2000 a month of cash flow in less time and with less properties. Also, I don't mind being more active in the way of STR because it feels similar to the customer service jobs I've worked my whole life anyways. I love the world of hospitality and although we would be implementing all of the automated services out there, I don't feel like the work will be that bad. I know there will be moments of discomfort and things will pop up that we might not expect, but just as I said to Luke, you have to start somewhere!
Overall, whether we do LTR or STR, we are just starting out, and we know there's going to be lessons learned. Hopefully through the help of everyone here on BP, all of the podcasts, webinars, and REI meetups, we can avoid certain mistakes, but this is a journey we are excited to embark on and are willing to take the good with the bad. Nobody starts out perfect, and experience comes with time. We won't let fear hold us back, nor the thoughts of what if this or that. I think everyone can agree that the path to success isn't necessarily easy, but it's well worth it!
