All Forum Posts by: Joe Rivera

@Karl McGarvey can you post a link to that report? I have beach condos in Galveston and would like to read it.

Our biggest lessons are:

1) decorate for the type of guest you want to stay in your place. We have found that it is better to focus after a certain group of guest than any guest.

2) cheap rates attract cheap guest and bad reviews. Know what your property is worth and stick to it.

@Travis Muse I am looking at the Blue Ridge area. What kind of STR's are you buying? Are they cabins?

@Tanner Woolley we have a beach condo in Galveston and one in Surfside. They both are seasonal but did very well this summer. We also purchased a single family house in Fredericksburg, that we are remodeling and will be turning into a short-term rental here in the next few months. There are a lot of good places to invest around Austin, like Dripping Springs, and Wimberley. 

@Brett Blackmon welcome to BP. Things are moving slow, we are still trying to get our permits. We are hoping to get them here in the next week or two. Once we have them then the remodel should go quick. I am hoping to have the property on AirBnB by the end of September.

Investment Info:

Single-family residence other investment in Fredericksbrg.

Purchase price: $314,500
Cash invested: $75,000

Bought a 3bed 2 bath, 2 car garage SFH, that was used as a long-term rental. We will be rehabbing and then renting it out as a short-term rental. We are going to update the kitchen, bathrooms, put in new floors, new heating/air, roof, and update the backyard. We are going to turn the garage into an entertainment area that will include a sleeper sofa.

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

We like the short-term rental market. We were looking for a place that had year-round guests and events. Fredericksburg is in the hill country of Texas, so there is always something going on. This part of the state also has many wineries, making it a popular travel destination for a lot of Texans.

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

I found the deal on the MLS. The house was on the market for over 60 days so I put in an offer below asking. They excepted and then we negotiated a lower price after the inspection report.

How did you finance this deal?

I found an investor to put up the down payment. We are using a bridge loan to fund the remodel.

How did you add value to the deal?

I found the market and the deal. I will be the one who manages the remodel, and guest relations.

Good Morning Jimmy, I am very interested in helping you research vacation rental properties. 

@Alex Johnson We have two STRs that are 5 hrs from us, that we self manage. I will say for the most part it is not hard. There are things that do pop up that need to be addressed. However if you build a team of people you can count on, then I don't see a reason why you cannot manage from a distance. Patricia is correct, housekeeping is key, they can make or break your STR business. Communication with your guest is key, when things break or there are issues, the faster you can respond and work to get the issue resolved the better. Guest appreciate the communication.

@Travis Fairbairn No I have not found a lot of red tape with our condo's. The HOA fees are $400+ (covers water, cable, pool, maintenance, lawn, trash) a month for our condo in Galveston and $500+ (covers water, lawn, maintenance) a month for the condo in Freeport. I am not a fan of HOA's.

There is a hotel tax you have to pay in Galveston and Freeport.

@Travis Fairbairn You are correct, you can be successful in the DFW area because of the amount of traffic.  We looked at doing an AirBnB in our area, we live in the historic part of Fort Worth and are minutes away from downtown and a lot of attractions. 
My strategy has changed, to look for places that are not seasonal, like the DFW area, or lakes/rivers in TX and OK.