All Forum Posts by: Keith Aiello

Quote from @Suzanne Player:

Have you considered looking around the country for cheaper areas that are growing & doing short term rentals either in vacation areas or for traveling nurses or construction workers?  There is a Bigger Pockets podcast episode about this - the guest was doing weekly rentals to construction workers.  I believe it was in Nashville, if not, then that general Southeast inland area of the country.  Short term rentals are more time consuming (can be like a part time job - but so can managing regular rentals) but tend to produce more income.

The East End of Long Island is incredibly difficult without a lot of cash - high end rentals want high end amenities and upkeep of the property (I’m thinking paint refreshed more often, power washing the house & patio, etc).  I would guess that the landlords spend on average more to keep them up to Hampton standards.  

 I love your help but I haven't considered far away since its out of my reach for my first short term investment. I was considering the fact that it is a big chunk to bite off and chew in the east end but my only recourse is that I want to leave nursing and the fact that it may become another full time job is something I'm welcoming. Obviously I'm super green and new to the concept of an AirBNB in the east end but I'm at the least willing to learn before making a full commitment. There are so many homes for full rent in the high season I thought there may have been more information on bigger pockets but it actually ended up being quite the opposite. 

Quote from @Taylor Dasch:

It does sound pretty risky and definitely let your own research hold more weight than AirDNA I have found those numbers to be slightly inflated in my market.  The home needs to cashflow from the beginning, if your purchasing an expensive home it should produce results for you. If I understand correctly your planning on having the AirBNB pay the mortgage until the mortgage is paid off then you can retire? That will be 30 years anyways and you could have hge growth in 30 years if you just buy deals that cash flow and let it snowball into massive wealth. You can literally buy a 12-18 unit apartment complex for 1 million in my market that cash flows from day 1

 Bummer! i was trusting AirDNA in supporting my belief that the area is and will always be a consistent worthwhile investment. My alternate motivation is to own a home "beach house" out on the east end of Long Island. Working for a paycheck does not permit me to pay for and own two homes, but the addition is that I'd like to leave Nursing all together. I view it as a win-win. Besides my fiancé won't allow me to not work. Although real estate does set you up for passive income, it is not without work. This way I can have a job, get a beach house for the future should I live long enough to retire, and all the while make a decent income while building equity. 

Quote from @Mike Davis:

@Keith Aiello overall nothing wrong with doing what you have listed above. As long as you have considered going from a fixed known income source to a eat what you kill income model and are ok with that. I would definitely not touch your savings. Start now to save up 6-months of your salary, get your license and start now interviewing real estate companies. In my opinion your best bet would be to get onto a real estate team as a buyers agent where you will be fed leads to start. While doing this, you will gain all the knowledge in that area you need to do what you want.

This is from my experience of owning a firm for 13 years. Good luck to you!

Thanks! This is worthwhile advice. I'm interested in learning the playing field for sure, I can't see it as wasted time however as others here have mentioned it could end up just being wasted money from the perspective of income. I'll start saving more over this period and still perhaps study for the licensing. 

Quote from @Zeona McIntyre:

I am not risk adverse but it doesn't sound like your best plan. I suggest exploring a more affordable market and making sure you like managing short term rentals and the business model in general. 

Since you are a nurse, maybe you want to rent to nurses? You could get a 4plex is a smaller city with a strong hospital presence like St Louis or Cincinnati, furnish and serve traveling nurses. One thing to look into is the physicians loan for your fiance. It is a $0 down loan with no PMI. My lender offers it if you want me to connect you to learn more.

 Thank you. That is a worthwhile idea. I work at a major institution in NYC and travel nurses are certainly a thing but more often would be looking for the cheapest option to maximize their income as a traveler. As for the Physican's Loan. We used that already to buy our own home. I believe it's a one time thing and going forward with each additional RE purchase I would need to come up with the 20%. Correct me if I'm wrong. 

Quote from @Jon Kelly:

@Keith Aiello A lot of other people have done it. Why not you? 

As others have mentioned it's not necessary to get your real estate license... as a buyer you don't pay agent commissions. 

It's probably a better idea if you rely on an agent that knows the area very well and the renting requirements. 

Thanks this is worthy advice I am taking seriously. 

Quote from @Sarah Bojorquez:

Unless you are planning on actually selling houses skip getting your license-between the education requirement, background check, application fees, board dues, MLS fees, desk fees, fees to your broker ,E & O insurance etc,. it is probably a lot more expensive than you think and if you are buying a property you aren't paying a realtor anyway, the seller is. And if you are going to purchase that 1 million dollar property you probably want someone who has been around awhile and knows what they are doing writing that contract....

 A lot of good points here. I starting looking at the possibility of becoming a realtor because of another RN that left and became a full time RE agent and is doing well. He planted the idea in my head that buying a property can pay you back but didn't paint the picture that it can be costly to maintain. I'll have to look further into the process and consider it more deeply. I am passionate about real estate investing and I appreciate your feedback. 

I am currently working as a nurse working 12.5 hours 3x a week. I aim to get out of this career as I'm not happy in it and I plan for a transition to real estate. Not only for some financial freedom eventually but just to work for myself.. 

I am looking to get my real estate license and try my hand at sales but mainly because I hope to purchase a home in the east end of Long Island. Area of the Hamptons primarily. I hope to buy a property for short term rental during the summer. With my license I can save on closing costs and commission. From my own research and airdna, the area is in high demand, 97% of rentals are booked in the high season months for 30 days. The range of price is $250 -$500/night per bed - I currently have a 30 year mortgage on a $600k home with 5 years equity of around $180k. My fiancé is a doctor and shares this home and mortgage with me. Some of these homes in the Hamptons ask for between 1-2 million. Am I way in over my head to say that I would like to take my savings ~$50k and home equity and use this as a down payment for a Hamptons home, list it to airbnb and vrbo and allow the income from that to pay for the mortgage for the home until its paid off, becomes profit, and then I can back away from my job as a nurse and focus solely on real estate investment and short term rentals?

Looking for some people who can steer me in the right direction. Thanks!