All Forum Posts by: Joseph Bafia

I'd be happy to share some STR specific lenders that understand that space and lend on potential STR revenue (unlike a traditional bank). I live in Raleigh as well and own 3 STRs....but they're not in Raleigh. They're all in Western, NC. As @Mitch Miller stated, tough and hot market.  Everyone looking for distressed properties, wholesalers, etc.  It really does become about networking at this point where someone feels the need to call you first through a relationship.  Join some Meet Ups, network here on BP and get on some wholesaler lists (I'm on a few and they send deals to me all the time, but not all are "deals".

Happy to share anything else about STR world.

I can add that there is a Short Term specific forum right here on BP. I've learned a ton from reading past forum posts but I will warn you that the majority of those on the STR forum lean towards self-managing. I self-manage 3 STRs along with 2 LTRs along with my full time W2. At first I did it out of necessity as property managers in my area were charging in the range of 25-35% of gross rents and at those fees, it cut drastically into profits.

Now that I've been self-managing for a little over 2 years, I've created systems to make things very smooth and I'm so glad I made that decision.  I feel pretty comfortable now being able to scale to probably 8-10 properties with the systems I've got in place.

Good luck and as @Curt Smith mentioned...do your homework and own investigating. Call a few STR managers and ask what they charge and what they give you for that fee. In some places, even STR margins may be thin, so you'll want to factor your cashflow after PM fees. You may find yourself making as much as a LTR and with LTR, you're doing much less work.

Good Luck!

@Erik Bell

I think with the right partner, it’s a great idea !

I was doing STRs on my own and connected with someone actually on BP and we’ve hit it off and already purchased 2 properties together.

Lay out who will do what, how financing works, entity structure, etc. I’m a believer in 2 heads are better than 1 and we compliment each other well. I believe many successful investors partner with others (many of the podcasts and even podcast hosts talk about partner deals they do).

Best of luck and let me know if I can answer anything for us!

excellent.  I have 3 STRs in NC near the TN border.

My first was doing great pre-covid, and that prompted us to buy 2 more.  Once covid it, we were shut down for about 45 days.  Once restrictions were lifted, we took off better than ever.  Highest rates and pushing 90%+ occupancy.  Already on the hunt for another property (we had one under contract that fell through recently).

I'd like to venture and diversify into other markets as well but its tough to shy away from what we know and what has worked.

Tony, where are your 5 STRs located?  Curious to know how your market compares with some of the ones that are regulars in this forum.

@Matthew Jackson

Glad to hear of your interest in STR. I found that line of REI by accident and now have jumped into it even further. I do some out in Western NC and live in Raleigh so managing from a distance is possible.

The area around Asheville has great opportunities so don’t be afraid to check things out and keep researching. I’d be happy to share some of my stories and offer insight.

@Mike V.

There are lenders that also specialize in STR lending and know that space and don't focus on DTI. I'm working with one right now and although rates a bit higher , makes scaling a bit easier and faster.

Feel free to reach out and I’ll share.

@Derek Robinson

I think I’ll make the evening one!

Looking forward to it

@Michael Baum

I feel like we may be about a year as well for the Encode on WiFi. We just felt that eliminating the extra hub reduces potential issues.

Question for you, can you program various door codes remotely with Connect? If so, what app do you use? We just do the encode on the Schlage app.

@Michael Baum

Only slight difference is we used to use the Schlage Connect with a SmartHub but now with the Schlage Encode , we don’t use a hub. It connects straight to the router and WiFi.

Just wanted to mention since Schlage still makes both options.