All Forum Posts by: Matthew Malley

@John Underwood as the market unfolded it definitely became clear that this is the new normal and not just a Covid spark. Limited housing supply and 30+ offers on houses, it certainly isn’t going to just slow down.

We didn't sell and actually bought another STR unit in the same village. This was a very helpful forum and i appreciate all the great insights.

Yes we wound up not selling that unit and adding another 3 bedroom in the same village. 

@Becky Haag Most of the research was google based and reading articles from local newspapers and then trying to connect with Real Estate agents from the area. The permit is something that you can get at any time with the township.

To update the forum, we actually just doubled down and bought another unit in the Poconos. The Covid market really turned into just hyper supply and demand. Weird!

Thanks @Andrew Postell! I wanted to cover all my basis but when you put it like that, it seemed so obvious lol i really appreciate the clarity.

Im currently in the process of purchasing my primary residence and have about a month until closing.

I am also a part of a 3 person LLC that owns and manages a STR property - I own 40% of the business. We're also in the final stages of purchasing another STR unit (bringing it to 2 total). Both units were purchased under an LLC and are personally guaranteed by the other LLC members.

Do I need to disclose this for my primary residence? My mortgage broker is saying that I do not since it is personally guaranteed by the others.

Looking for second opinions and appreciate the help.

@Steve W. Im from NY and I went to college near the Poconos so I had a basic understanding of the area. I knew tri-state people went to the Poconos. But I was doing STR research mainly on southern areas since the Poconos wasn't really on many "best place to STR lists" - but it was on one list which prompted me to really look into it. The more I dove into the area and the numbers, the more it made sense to me. That was all just basic google research. I liked that it was 2 hours away and I could use it - I'm here now actually!

I found out about the companies coming to the area from my real estate agent who is in the know in the community. She understood the ordinances and knew where we might find the most success.

Cant emphasize enough the importance of doing your research and then finding a real estate agent who specializes in STR - eveb better if they manage one themselves. Then go and don more research and verify the agents info. Trust but verify.

@William Beck do you have any suggestions for other areas that might be a good buying opportunity? I've been researching the Disney area since Covid has negatively impacted the STRs there. I hear "over saturated" used a lot for that area but I think the same can be said for the Poconos.  

I have a STR that is about 2 hours away from where I live. If I was 15 minutes away, what could I actually do? A guest might say "this is broken" - if I was 15 minutes away, I would still call the same handy man. The ability to instantly automate and communicate with people allows us to manage this from anywhere.

As others have stated, the team on the ground is the most valuable asset that you have. Hire a great cleaning team! You can probably find cheap cleaners, but a great cleaning team is essentially a property manager that your guests are paying for! They'll know good maintenance people in the area and are essential to your business. Personally, I tip them throughout the year for the amount of value they provide my business.

For example, just today, one of my guests put the knives in the dishwasher and they rusted. I bought a new set of knives online for pickup, at the local Target, near my STR. My cleaning team went, picked them up and dropped them off at my STR. Done.

@William Beck great perspective and insights here. We’re going to hold on to the property and look at the heloc vs. cash out refi option. In the meantime, we’ll keep an eye out for another place in the Poconos but with prices so high we’re going to evaluate some other markets, as well.

Thanks, John. I'll definitely do some digging and a comparison between the HELOC and a cashout refi.