All Forum Posts by: Michael Otoole

@Lucas Carl I love your positive attitude! I am new to VR investing. I have 2 air BNBs in atlanta (house hacking - terrace apartment downstairs and I rent out my house when I go on vacation). Thinking of buying a place in Provincetown but the air dna software I use keeps guiding me to pigeon forge which seems to be your expertise ?

@Adam Harper hi! I am under contract now on a property on Commerical. Did you end up buying ?

@Jason Muth Hi! I am currently under contract on a property just off Commerical across from Joon bar. How did your property end up working out? Private message me if you are willing to talk

@Julie McCoy interesting. On my air dna software - that market shows as the most profitable. How did you find your first property? Did you go visit?

@Jonathan BombaciThank you. What exactly does the CAP Percentage mean?

@Jon Crosby so helpful!!!

@Julie McCoy thank you!! What markets are your VRs in?

@Jaysen Medhurst. Hey! Thank you! So this is in a location that I will vacation at so it is part a lifestyle investment vs financial investment. I got approved for 10% down with a local lender in Ptown at 4.25% which I thought was amazing so I don't have to put our much cash. The cap ex is low because the heavy expenses are covered in HOA. And the place is in good shape now but I see what you mean by budgeting for it. The building is in great shape and hoa finances are too- new roof, new septic tank, etc. The $350 is for taxes on air BNB by the town. They charge 14.45% tax. I have always used air BNB and passed cleaning fee on to renter so I have never hired a management company as it feels like a waste if you have a good cleaner/turnover service and I manage the bookings via the air BNB app. I have several friends that live in area and are retired. I can always call on them if I was in a pinch for something. I don't think this is a good cash cow. However - I really want to retire in Ptown in the summers and stay in Atlanta rest of year. So I thought I should get into market while I can and then make money on selling it 5 - 10years from now and then buy something bigger

@Aaron Wade makes sense. So investors tend to go for the cash flow properties as the cash is more or less stable vs relying appreciation which can be a gamble

Let me know your thoughts on this statement:  A vacation rental property could have negative monthly cash flow but it could appreciate at a high rate in which case it would still be a good deal for a long term investment.

I can’t seem to find many properties that have a huge monthly cash flow return but I have found some that pay for them selves and make a small amount of cash each month but the property values appreciate over time and thus make the investment still a good investment. Has anyone else found this to be the case?