All Forum Posts by: Joshua Messinger

Hey @Felicia Richardson! 

Moving like lightspeed! Keep crushing it! I may be able to recommend a company that has helped me out greatly while getting started in my investment career! 

Besides that, if you ever need anything else please don't hesitate to reach out! 

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Josh 

Hey @Serge DuLaudAllemans! 

Usually, when looking for a short-term rental investment you will rather use the calculation to find the cash on cash return vs. using cap rate. The cap rate can be very helpful at times but is generally used when looking for a multi-family investment or a long-term rental investment. 

Besides that, please feel free to reach out and I can share with you our team's calculator that we use so you can start running analyses!

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Josh

Hey @Brenainn Kilchoer! Hope I can help out here! 

1. Our PM company generally charges a 22.5% management fee for any leases under 6 months. For anything longer we only charge 10% as at this point, we get into not including utilities in our agreements and generally have to do less for these types of guests. Comparing @Allen Duan rates, I can only assume that the general rates a PM company will charge will be in between the 10% - 20% range 

2. The only difference is the LOS (Length-of-stay). 

Long-term rentals = 6+ month stays. Less management, less turnover, and overall less of a headache.

Mid-term rentals = 1 month - 6 month stays. These require just a bit more management, but generally still won't involve too much turnover.

Short-term rentals = Any stay less than 30 days. Generally anything longer than this they go from being considered a guest to a tenant.

3. It all depends on what your goals are! Do you want to turn Real Estate investing into your primary occupation? If so, I would recommend starting out taking on most of the management so you can learn the ins and outs of the business. Once you have this experience built up I would then recommend switching over to a PM company or creating your own PM company depending on the type of scale you want to have. But, if this isn't the way you want to go and you want to be a passive investor then you might want to go right to a PM company! Like I said, all depends on what your goals are! 

I hope this helps and if you need any more help with anything please don't hesitate to reach out! 

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Josh

Hey @DuWayne Jones! 

I am not in MN so of course, our markets are different but in PA they are starting to go more digital with records. It's gotten to the point where in some counties you can get emailed lists instead of having to go to the register of will's office. 

Hope you've been crushing it! Please don't hesitate to let me know if you ever need anything! 

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Josh 

Hey @Adam Pervez! 

If you already know that the property will be in the negative I believe this is a surefire sign for you to walk away and keep looking for more inventory to come up (there's always more fish in the sea!). At the end of the day what really matters is cash flow. Without it, you are going to be taking on an extra rent payment instead of a property that is generating you cash every month! 

If you ever need help with anything I'm here! Please don't hesitate to reach out! 

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Josh 

Hey @Devon Yates! 

@Bill B. brings up a great point. You are going to want to figure out any legal implications this could have before doing so. But, what we normally do is advise our tenants two month's if not longer beforehand to let tenants know that we will be increasing the rent price. We usually only increase our prices around 5% - 20% depending on how long the rent is and what the average market rent is. 

I hope this helps and please feel free to reach out if you ever need anything! 

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Josh  

Hey @Ryan White! 

I think MTR demand is wholly based on location and what is happening in an area. I don't believe you will see a ton of this demand in any markets that aren't going through a transition in some type of way. But, you will see major markets in metro areas with this type of demand all the time as most metro markets are going through a major transition (especially older cities).

I believe the real question should be what type of tenants can provide you with a stable lead flow for the entirety of the existence of the rental and what amenities do these tenants need to have to continuously rent out your property (location, convenience, etc)?

There are more questions to ask besides this but I believe this is always a good start to begin at because once you know all the things that make a rental successful in your area you will then know what to pull the trigger on exactly. 

I hope this helps and please feel free to reach out if you have any more questions! 

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Josh

@Nathan Gesner! Hit this one right on. Keep it simple, and work step by step! 

If you ever need anything @Michael Matesky please don't hesitate to reach out! 

Hey @Kristen Dolotina! 

@Mark Waite gives some great insight on this one! Great advice! 

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Josh Messinger

Hey @Dom Radcliffe! 

I would recommend consulting with your Tax Professional on this. These terms are always changing and it is in your best interest to get the most up to date knowledge. 

Hope this helps and feel free to reach out if you ever need anything! 

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Josh