All Forum Posts by: Mike Eichler

I believe that any strategy in real estate can become saturated especially STR. I also believe that if you are in the top tier of listings you don't have as much to worry about, even if you are not there are some options that you have... I actually just recorded a podcast on this and would happily share it with you ( feel free to DM me). Some of your exit options might be to switch to Furnished month-month rentals or LTR. and if applicable, student housing. Not sure exactly what your area is like but here in Philly we have had some success switching some of our STRs to furnished month-to-month as regulations to ban STR are looming.

Hope this helps, let me know if you have any further questions and I would be happy to answer them for you.

All the best, 
Mike

If you are ready now I would jump right in, I also do see from your side that you don't necessarily need to move out right now, which will bring extra expenses that you do not have now, however, if you plan to move relatively soon anyway, why not just go now? Also, the knowledge you will gain from the first purchase will be astronomical in your growth as an investor. As you said you could not time the market, so waiting to jump right in is not ideal. The market will always trend upward in the long term, you do not want to get caught in "analysis paralysis". 

This is just me rambling on but I hope it helps.

Let me know if you have any more questions and I would love to help.

All the best, 

Mike 

Don't know that any conventional lenders will allow no MI for anything less than 20%. 

Hard money lenders could work but of course would come at a much higher interest premium.

I would suggest just using the 10% and paying the MI as you still would be in the deal for much less, making your Cash On Cash much higher still.

Hope this helps let me know if you have any more questions.

all the best, 

Mike

My suggestion is to get really good at estimating ARV, or the price the property will sell after it is all fixed up, and allow there to be sufficient returns for the end investor AFTER you also take your wholesale fee out.

Let me know if you have any other questions and I would be happy to answer them for you.

All the best, 

Mike 

 If the tenant is responsible for utilities put them in their name, if you are paying it and charging it back to them put it in your name. you don't want get messed up in the event that tenant stops paying.

Hope this helps feel free to reach out anytime with any more questions,

All the best, 

Mike

Hey @Jack Dagnese I work with a property management company and we have some listings at the Jersey shore, Its not my favorite market because of the seasonality aspect, and as you said the much higher barrier to entry as the prices are so much higher.

I specialize in STR properties, you might be alluding to LTR, but nonetheless, I would be happy to run some numbers on a property for you, feel free to DM me.

Best of luck, 

Mike

Hey @Dylan H. To be able to get approved for a 3 or 5% downpayment, for 3% down it would have to be the first property you have ever purchased and you have to live there for the 5% you can do that once per year, which you also need to "intend" to live there, some are able to skate by the rules per se, and not actually live there if their situation changes after getting the loan. Otherwise, you would be able to do a 10% down second home/ Vacation loan. From then on you can do 15% down DSCR loans which use the projected income of the home to qualify for the loan.

hope this helps,

Let me know if you have any more questions

All the best, 

Mike

Hey, @Logan Rhea Occupancy seems crazy high, where did you source the data for the occupancy?

Also, you would need to account for Management, even if you plan to self manage you should plan for management as its likely you will switch later on. You also want to budget for cleaning, consumables, repairs, etc.

Id be happy to run my own numbers on this property, feel free to DM me 

Hope this helps

all the best, 

Mike

Totally, I always look for opportunities that old owners that might be way less savvy in the space to take over the property and bring it to where it should be on Airbnb. Possibly they didn't have the time to manage it themselves perfectly, they didn't know how to properly list it, or take perfect listing pictures, they didn't have the money to make it super cool design and furnishing or add in a big X-Factor that would skyrocket the price such as a movie room, hot tub, etc.

"One mans bad listing is another Cashflow King"

Hope this helps, feel free to reach out if you have any questions

best of luck, 

Mike

You could use a property management company, they are typically going to charge something like 20-25%, you also have the option to self-manage the property, if you have too many properties or have a fulltime job that takes up all of your time; you could contact a nearby host to your property and offer them something like 10% to manage your property for you. 

Hope this helps, if you have any other questions let me know.

best of luck,

Mike