All Forum Posts by: Ella Marie

Hi Ella, welcome aboard,

Your post about your real estate ambitions, encompassing the purchase, renovation, and sale of properties, as well as the ownership of Airbnb rentals, is indeed an exciting endeavor.

You have indicated a need for assistance with the Fix & Flip or BRRRR strategies. These methods involve securing financing, identifying suitable properties, and overseeing renovations. The BRRRR strategy, which stands for Buy, Rehab, Rent, Refinance, Repeat, focuses on long-term investment, while the Fix & Flip approach involves purchasing, renovating, and selling properties for a profit.

Investing in Airbnb rentals presents a distinct set of challenges, requiring active management and a thorough understanding of local regulations, but it also has the potential for higher returns.

Here is a concise overview of the advantages and disadvantages of each method:

Fix & Flip:

Pros.

- Potential for quick profits - Enhances property value - - Adaptable to market trends

Cons.

- High risk - Time-intensive - Requires substantial capital

BRRRR:

Pros.

- Builds long-term wealth - Generates rental income - Increases equity

Cons.

- Complex process - Requires financing - Dependent on market conditions

Airbnb:

Pros.

- Potential for higher returns - Flexible pricing - Short-term commitment

Cons.

- Requires active management - Subject to regulatory risks - Income can vary seasonally

I wish you the best in your new venture. Your proactive approach in seeking advice demonstrates a commendable level of preparedness. Good luck!

@Ella Marie, I can't speak on behalf of your market, but in my respective market, competition is tough, and the successful fix-and-flip vendors are often full-time operating businesses. This isn't to say you can't flip properties part-time, but it will come with challenges. If you haven't already, read "The Book on Estimating Rehab Costs" by J. Scott as a starting reference. Moreover, for someone in your position just starting, it's best advised to partner with an experienced individual to mitigate risk and adequately learn the process. With this in mind, if you intend to leverage short-term debt (hard money), it's even more vital that your underwriting is thorough and that you have the correct systems in place to tackle potential issues. I've seen many investors get burned because they failed to understand their hard money loan terms/rates, even if they did acquire what should have been a home run deal. 

Operating an Airbnb business requires being up to date on current local ordinances and restrictions. The last thing you want is to acquire an STR deal that looks great on paper only to find out that the neighborhood you bought in does not allow Airbnb.

Overall, your next actional step should be attending local REI meet-ups. Connect with professionals who know what they are doing so you can receive proper guidance.

Hi @Ella Marie, welcome to the BP Forum! Do you have an idea of how much money you're looking to spend on/invest in a property? Are you looking to house hack?