All Forum Posts by: Matthew Stallings

@Dan K. I think it depends how much cash flow it produces compared to how much it appreciates. If I have an STR that nets me $40k yearly In cash flow which I have. That's essentially the same as me buying a house that appreciates $200k over a five year period. Which situation is better? Would I pay less tax on one of them vs the other or is one method better than the other? I'm not sure so is why I ask.

My two cents are that 1-3 bedroom cabins will probably be the best buys at this specific time and suffer the least. They may even see a surge in bookings as people want a safe getaway in a remote location like the mountains.  Demographics would include mostly small families and couples (maybe plus 1 of another couple) which will still travel driving distance during this pandemic.  The bigger cabins that rely on bigger groups and numbers of people organizing and renting them such as church groups, multiple families in same cabin at one time, reunions, sporting and youth groups, along with work groups will take a hit at this time for the foreseeable future.  I am unfortunately one who owns a larger 7 bedroom cabin and I have had a few cancellations already.  Also, a lot more planning goes into the bigger ones being rented and during times of uncertainty and when people are not sure if they will have jobs or not, no big groups of people are wanting to book. Fortunately, I have enough emergency to cover 8-12 months of mortgage so will just need to ride this thing out.  Once things get a little more normal hopefully in the coming months, I expect to crush it just as I was pre-Corona virus with domestic guests.

This is all great stuff.  Matt Roar - What is this physicians second home loan w/ no pmi you speak of?  Very interested.

Thanks for the feedback everyone.

I currently have a cabin in Gatlinburg that is cash flowing well. The market there is inflated right now so I'm looking to purchase my next STR property in Florida (possibly Emerald Coast) doing the second home loan with 10% down. I know that Florida's condo's come with high HOA fees that hurt cash flow.

I'm looking for someone experienced in the FL market (Avery Carl is the go to for Smoky Mtn. market) who knows of good neighborhoods and areas where houses are allowed to do STR and will cash flow well through Airbnb/VRBO. House would be in the $350-500k range and I'd like to self manage remotely. Can anyone help me out or steer me in the right direction?

Thanks for the responses everyone.  Looks like I need to do a little more homework but this will get me going in the right direction.  

Hey Everyone. I've been on here for a bit and have been to some RE meetups the past six months. I'm looking to get my feet wet and buy some SFH rental properties out of state (I live in Los Angeles). I spoke with an investor that does the BRRRR method 30-45 minutes outside of Madison, Wisconsin where he says that you can buy a fixer upper SFH 3 bed/1.5 bath for around $40K and rehab it for another $20K.

He states that similar homes appraise for $80K after Rehab and rent out for $1,100-1200 monthly.  Option 1- if I have $80K cash to invest in Real Estate, what is the advantage of using my own cash of $60K to buy 1 property and rehab it then rent it out rather than Option 2 -Buy four or five $60-70K properties and only have to put down $15K (20%) or so down payment for each property.  

Having 4 or 5 houses would be better than having all of my cash tied into just one house, correct?  I know that I can refinance and get my money back out of that one house which i paid cash with if it appraises higher than what I bought it for but can someone explain why I should do option 1 instead of option 2.  My ultimate goal is to maximize cash flow on properties to eventually replace my W-2 sales job. Any help/advice would be appreciated.