All Forum Posts by: Joshua Meisner

 Jim - Be sure to check the management fees. Currently we get charged 50% but it is completely hands off. They do all the booking, cleaning, make cards and take care of literally anything to do with the unit.

When we use the condo or have a friend/family member go up its a $75 cleaning fee. Be sure to try getting people scheduled in there that you know on the down times. (Ours is up in the mountains so Spring / Late summer are the slow times, so we discount a extended stay to someone we know - further than a typical family/ friend discount)

Best of luck!

Josh 

Eric I don't fully agree I know people up here that do very well and people that live down South that do great at resorts up in the mountains. Do you have any negative experience with STR?

@Lucas Carl

Sorry very new to this and yes Rental Agreement - I need to look into this do you have any suggestions on a good template?

@John Underwood

Yes cleaning will definately be hired out but I am always nervous on counting on someone to do an excellent job with it. Guidelines before hiring the person makes sense and list of what is expected. I figure this is something to make sure you pay up for.

Thanks all for the replies I will be rereading and jotting down some stuff to ask the two people I am sitting with.

-Josh

@Julie McCoy

Great reply. I should have elaborated thst we plan on using this property for our own small vacations too. This is why I plan to keep it somewhat local. I have added HOA fees into when I analyze these deals. I will definately be checking into regulations as you, Villy and John mentioned.

@ Villy Ellinger

I have definatly taken selling the experience into consideration. Location wise will be in the mountains. Great point about not being completely passive income. This plan leaves us enough cash to get a multi shortly if a great deal comes up or go after 1 or 2 more vacation rentals.

Thanks for the reply.

I have rented STR's before and have gotten agreements. To pay X dollars and all the terms regarding the property (trash, towels etc)

is this something typically that is only done by property management companies that are in STR's?

I met him via the real estate agent I have been working with. He is a lender but also has multiple homes in the area that he rents. I will not be using him as a lender and have made that clear, but he is willing to give me his time to go over things and try to inform me of the pros/cons and answer questions.

Thanks again.

Josh

Hi BP members!

We recently have refinanced to go into real estate investing, as we had a very large amount of equity and wanted to hopefully speed up our path to retirement.

After discussing multi-families and placing offers on properties it is almost un-reasonable in the area I am in to invest in a multifamily due to the amount of work needed or the price listed right now.

This brought me to looking into vacation rentals and possibly getting into condos to start in high traffic vacation areas that are close enough to me so if I needed to fix something I can be there in a couple hours, but far enough where I wont be able to clean them regularly.

I have listened to advice from a few sources and decided to schedule a meeting with my CPA, who has done wondering guiding my parents in BRRRRs over the years to allow them very early retirement.

I also have the opportunity this week to talk with a very passionate Vacation Rental guru in the area I am looking.

What questions would you suggest asking these people when it comes to your first vacation rental - I have a list started but I know I am not covering everything important. Any information would help. I know I need to come up with a lease agreement and figure out insurance costs to make sure the numbers work prior to purchasing but what else.

This will be our first investment purchase but we will have reserves to get another quickly provided all works out unless someone convinces me putting reserves all at a larger property makes more sense.

Thank you!

Josh

Hi Mary,

I fully understand what you are saying, unfortunately the appraisal company looks at it the exact same as they look at 2 houses on one property. My father was re-financing a property with 2 houses on it and was unpleasantly surprised to find out he had to pay 2 appraisal fee's. (He remembers when they were 100$ or so a piece...)

Good luck with all of this and hope everything goes as planned!

Josh

Awesome input from everyone.

Thanks for taking the time to reply.

My real goal would be to have these investment rental properties become my income. In turn, try to work away from a real full time job by the time I am 45 or so.

@Heath Ryans

That's a great point. I just dont want to go into this without getting my feet wet with something smaller though.

@Bill S. And @Chris Connolly

I am planning to leave myself cushion to cover a large expense if needed. I have my dad (contractor) to hopefully help with any extensive repairs that may go unseen during home inspection/walk through.

@Derek Guivehchi

Great advice, I really feel I need to just get out and walk properties to get a feel for what is what personally.

I'll be doing some walk throughs and more research. I will keep any movement posted here.

Thanks for all the input and its great being part of the BP community.

Josh

I have been looking at 3 unit and 2 unit 2BR units for figures and they all make sense if the price is right. I am not looking for a turnkey property by any means. I want something upwards of 10%ROI when I am being very conservative using my numbers/cushions.

How do you feel, multi or single family for a first investment rental? And why?

Thanks!

Josh

@Nick Rutkowski

Understandably lending would be more secure given my situation but I wouldnt want the HELOC sitting for years. I want to be able to refi whatever I buy and take that money to wipe the HELOC, so hopefully I can do it again successfully.

What would you personally do given your mindset behind realty?

Thanks!

Josh