All Forum Posts by: Justin Rademacher

1st and foremost congratulations on jumping into real estate investing!

I have identified 3 things that are necessary to investing in real estate out of state: 1. Figure out what property type you are looking for. STR, LTR, small commercial etc. Looks like you already have this figured out so awesome! 2. Based solely on your criteria, research areas that support that goal. Look for vacancy rates, job growth, population size, population growth over the the last 10 years etc. This will help narrow down the market. Also pay attention to pricing in that area and the appreciation as these will be key indicators. 3.Find an agent in the area you are looking at. An agent who focuses strictly on investment properties will have the key relationships and knowledge to help you navigate the investment waters.

"The millionaire real estate investor" is a good book to help you get started. It was written by Gary Keller...Owner of Keller Williams.

I hope and trust this information is helpful!

I would reach out to the current bookings and inform them of your new acquisition. I would then give them the option to rebook at a later date "at the same rate" but let them know that you are planning on improving the property etc (I would let them know what your improvement intents are). If you can get the guests to rebook at a later date, do the fixes now. Honor their pricing and you will have exceptional reviews.

If they can not rebook, I would still honor their booking. This also will set the expectation for them that the property isn't up to your standards as you let them know that you are planning on improving the property. 

Hope this info helps

We just acquired a 25 unit in Minnesota. We were able to get this deal off-market through a wholesaler. Not all wholesalers are the same so having a vetting process when connecting with them is very important.

I don't have experience in the Baton Rouge area, but I have and am investing in other areas. Would still love to connect and network. Ill send you a connection request. 

Monica- I would say the first and foremost important thing would be to find an agent who specifically specializes in what you are looking for. A lot of agents try to do a little of everything and that can end up being dangerous when it comes to the investment side of the business. Agents who specialize in investment properties typically have a wealth of connections i.e property managers, contractors etc. This is essential! Make sure the agent knows the market, knows how to calculate COC and other important criteria, and has experience in muti-family or STR strategy. From what I know, the MN, FL, and TN markets are super strong for what you are looking for. I hope this information is helpful!

This is a very valid question. Obviously none of us have a crystal ball but for what it's worth, here is my 2 cents. 

It is very unfortunate what happened. Many people lost their homes in this tragedy. With that being said, I think there is an amazing opportunity to still invest and help these individuals in the process. By purchasing SFHs and renting them out to people who have lost their homes and/or workers that have traveled here from out of state. One thing to look into would also be renting out by the room in certain areas that allow it. 

In regards to the market, things are progressing much faster than originally anticipated. There is no doubt that Fort Myers Beach will take a while to recover but here is what I am seeing in the area:

1. Sanibel bridge is already open and has been for a while now. This was orginally not projected to be open until late October at the earliest

2. Pine Island has a bridge already built while the other original one is being fixed

3. Downtown Fort Myers is seeing significant improvements. Some of the local restaurants and shops on 1st street are already open.  

Although this tragedy happened, there is plenty of opportunity to still invest and help people at the same time. My personal opinion is that we will see the vacation rental market come back in 4 to 6 months. Let me know if you have any questions about what is going on down here. I would love to answer any questions or concerns you may have

I am an agent in the fort myers/cape coral area. Fort Myers Beach obvious got hit pretty hard. What I am encouraged by right now is the progress that is being made in such a short period of time. They have already created temporary bridges and fixes to get to sanibel/captiva/ and Pine Island. That originally wasn't going to be done until late October. 

I haven't seen much of a dip in pricing quite yet. I would imagine that will happen to a certain extent. In my personal opinion, I think certain areas will be back up and running for the STR market sooner rather than later. People are still coming down here from all over the country and they are still wanting places to vacation. Would love to chat more with you if you would like regarding all the progress I am seeing being made down here in such a short period of time.

I would highly encourage you to spend the money on a reputable property management company. In MN for example, they typically charge about 8% management fees. To get connected with one, a good strategy is to find real estate agents who mostly work with investment type properties. They should have some good connections for you.

I use AirDNA as a very basic tool. It helps most with the occupancy rating. In my experience it really doesn't factor all of what you need into the equation when it comes to avg daily rates. It's a good "starting point" but should not be used as gospel. I cross reference their data with data from other websites like Airbnb and others. Being an agent, I also go into the MLS for more accurate rental numbers.

If they prohibit short term rentals, I would take a look at doing the mid term rental option. These are typically rentals that are 30 days or more. Your primary market depending on location is traveling nurses, traveling drs, or REOs.