All Forum Posts by: Lisa Irimata

Hi all! I just went under contract for a rental property in South Bend, IN. and am starting the process of finding a contractor in the area to work with and figure out preliminary budgeting. Below is a list of items I'll need to contract out

1. Scrape and paint exterior of the building

2. Fix or replace 2 window frames on the 2nd level 

3. Basic drywalling/install a door in the attic for the 3rd bedroom. Maybe add a 4th bedroom here (waiting for final sq ftg measurements)

4. Finish a basement (900sq ft) would like to add a 2nd bathroom, potentially add a 4th bedroom, and finish the rest of the area as a second living area. 

Any leads are very welcome, thanks in advanced!

Thanks Chris! This was really insightful. I'm still really new to REI and have always thought of LTR but recently started entertaining the idea of STR. This is a good reminder for me to be flexible with my investment plans and transitioning/pivoting from LTR/STR/selling/etc when it's an opportune time. Also good reminder why reserves (outside of rehab budget) is REALLY important.

Yep, I've been noticing a lot of STR-esque properties have been hitting the market recently. Seems like a lot of people are starting to dump them with limited travel/low occupancy rates. I'm fortunate that I do have solid cash reserves right now as I just sold a property but I will definitely keep this in mind. Good luck to you in weathering this situation!

 Thanks for the resources! I was trying to estimate based on Airbnb calendars (when they're booked out vs empty) and the relative rates they charge but it's tough since nobody has anything on their Airbnb calendars right now with the COVID situation and I can't see previous bookings at a property. Will keep poking around.

Thanks Lauren! Will be posting to the local AZ forum as well. I know that Scottsdale has been looking into/enacting STR related laws and plan on looking into the Mesa/Tempe laws as well. I was wondering what to do with the property during summer when it's 120+ degrees so good advice for doing month to month

I'm looking at purchasing a property as a short term/vacation/Airbnb type rental. This property is very close to a spring training stadium, good proximity to a state university, and also near some larger shopping districts so I think it has good potential as a short term/vacation rental. My question is, when purchasing a property specifically for short term rentals how did you estimate rental income? My biggest fear with short term rentals is the cash flow instability. Worst case I could rent this place out as LTR and still have some modest cash flow but it wouldn't be great and am mostly interested in a STR scenario.

Any insights on best strategies for estimating what your rental income would be? Apologies if this has been asked before, happy to be redirected to a previous post!

@John Hunt Also a young investor here (mid 20s). Like everyone said your age is your biggest advantage here and you are correct that house hacking will be a great first step for you. I purchased my first house hack about a year ago after working at my current first job for about 6 months and the knowledge you gain just from going through the process yourself is incredible. Here are some action items I wish I had take right out of the gate and have been taking this past year and a half that have helped me enormously.

1. Read Set for Life by Scott Trench before you graduate (A previous poster also mentioned this and I 100% agree)

2. Keep living a frugal college student lifestyle, even when you land your first "real" job. Don't let lifestyle creep get the best of you. Find roommates, live modestly, and don't go crazy with your first paychecks.

3. Start networking with other BP members, attend local meetups, DM people that are in your area and ask to meet for coffee or lunch or something. 

4. Start running theoretical deals so that you get a knack for using the calculators BP has available so that when you have the capital ready you are good to go

5. Absorb as much information as possible, BP has a ton of great book recommendations. I'd also recommend you start listening to the podcasts if you don't already.

6. Keep your credit good (or build credit if you haven't already). Don't carry a balance over on any of your cards. If you have student loans begin reading Total Money Makeover by Dave Ramsey and begin creating a plan for how you'll pay off your loans.

Best of luck and can't wait to see what you do within the next couple of years!

Hi Jorge,

My current (and first property) is a townhouse and I love it! The only thing I would check is HOA fees to make sure they haven't drastically risen over the years or have incurred any shady billing to residents because this might indicate that they've had a lot of common area issues that have needed fixing and/or shady HOA management. My agent called the HOA directly and found out all the info although I don't think they're required to disclose anything. You'll also want to determine if there are any bylaws or regulations about long/short term renting out your unit. Other than that I agree with Frank that condos/townhouses are great rentals. I'm looking forward to not having to worry about any exterior maintenance on my current place!

@Aaron Zimmerman Fortunately (or not?) haven't lived with any SO yet so haven't had to have that discussion. But I'm sure in a few years I'm sure I'll be having the same discussions you are. If she's already on board with FI I think you're in good shape!

Those are pretty much all the blogs/podcasts I keep up with too and I supplement this all with the books they suggest on the BP podcasts. If you're looking for a good read I'm currently getting through So Good They Can't Ignore You and it's phenomenal! Same to you, if you have any suggestions of what to read/listen to I'd love to hear them.

@Jeremy Gray Hi Jermey, thought I’d give my 2 cents from the perspective of a recent college graduate. I did not have this same experience but just a few thoughts. I think a big part of this is dependent on if your son wants to landlord/house hack. Personally when I was in grad school I did not have the time or desire to be a landlord because all my focus was on studying. I also do not think I had the skill set or confidence to landlord properly with my friends (wouldn’t of felt comfortable or been assertive enough), so a part of this may be helping him through the process of becoming a landlord.

That being said if your son is interested in REI this would be a great opportunity! I wish I had known more about house hacking and everything when I was in college. Also if he hasn't read it already I'd recommend buying him a copy of Set for Life by Scott Trench as a graduation gift!