All Forum Posts by: Michael Bowie

@Mike Williams I would look into STRs. Yes, they take more time to manage, but it's actually not that hard. Also, you can bring on a co-host if you want to make it 98% passive.

$100k can definitely make you $4k in cash flow. This is how I run my numbers at a very high level when I'm searching for deals: Down-payment ($100k) multiplied by 5 (20% down) = $500,000. I want the property to gross at least 20% (if not more) of the purchase price. Thus, the property should have $100k gross income. Then, I want to cash-flow at least half of that which would be $50k or $4,166 per month.

Like I said, that's just my personal rules of thumb to narrow down on good properties for STR.

Just tossing in my personal experience with bigger properties... a lot of my guests are here for weddings, graduation, music festivals, conventions, film crews, etc... so I make the same profit of 5 studio sized units. Thus, I can personally grow faster with bigger properties, and that’s why I like to focus on them. 

However, @Julie McCoy makes a great point, and it really depends on the market. 

@Michael Guzik That sounds great! Though, I would still try my best to figure out where you think they’re headed. That way you can buy where you at least expect to be safe whenever regs go through. 

For example, in my market it was Wild West as well. However, I kept hearing from the opposition of STRs that they didnt want them in residential zones. So, I started only looking for commercially zoned properties even though there was no regulation that required it. Guess what... regulations have now gone through that make it illegal for non-owner occupied in residential zones.

So, I get to continue to operate while other people are having to shut down. 

@Michael Guzik I would start with understanding the regulation in your city.

What’s the regulation in San Antonio? 

@Paul Sandhu Bravo Magic Paul! Bravo! 

What’s the secret recipe? 

@Paul Sandhu Interesting...So how what are magician-type qualities you’ve been developing? 

If it had something to do with the fact that she is your wife, then I think I saw it. :)

@Julie McCoy Yes, they are commercially zoned STRs in Knoxville, TN.

@Luke Carl Isn't past your bedtime? I don't want you razzing me for tagging you past midnight. ;) lol. Still have to learn what the heck these M's mean..

Sounds great.

@Paul Sandhu also apparently has great advice with his 3M's... even though I haven't quite figured out what it means. :) I feel like I just wasn't around when the inside joke was made.

Agree with @Paul Sandhu. Those refinery/power plant niches can be great. 

Agree with @Luke Carl. Don't have to be a people person. Just have to know how to communicate and understand how you would want to be communicated to in a guest's shoes.

With all do respect, I disagree with Michael @Michael Greenberg. It's not that bad... I literally just threw my first spare apartment on Airbnb without any furniture other than a mattress on the floor, a metal chair, and a wooden electric cable spool... it stayed rented and I was hooked ever since. As long as tend to be eager to please, you can learn the rest.

Also, @Michael Guzik, I would recommend Smartbnb if you want to make it as passive as possible (other than leveraging a co-host). It's a flat montly fee, but it has all the software you need to automate messages, questions, check-ins, check-outs, cleaning coordination, and more.