All Forum Posts by: Michael Porche

Whats up @Stephan Garcia, we should definitely connect, I'm interested in what you got going on. However, to answer your questions

1. Yes, the luxury vacation rental market pays a lot more. So it's pretty easy to identify them in data. What I would do is go to airdna, look up the specific market you are looking to get into for luxury vacation rentals, and click on top properties. You'll have to purchase the subscription. However, you will be able to see the luxury vacation rentals for they are the ones that are performing the best. Typically you'll see the luxury combined with rentals that sleep 12-20 for those typically perform the best. This is where I would start.
2. I would also look at airdna to check out the seasonality of the market. I would either acquire during the slow season to build out my rental or do the rehabs if needed so that I will be ready to rent out for the busy season. Or if I was buying turnkey I would look only to start in the busy season as to front my largest return of the season right away. This is to help you get started and stay afloat.
3. There are tons of upsides and downsides. But you definitely need to know them before you get started. If you don't know them prior to getting into a project of that size it can be unforgiving if you don't prepare for them or avoid them.

Hope that helps Stephen. Let's connect.

@Leah Brooks, great question. I wouldn´t lie and say it's owner-occupied when it's not. That will open up a whole can of worms you really don't need to go down. However, if you plan to manage it you can easily set up a responsible person that is 30 minutes away or set up your own management company for it. It´s actually a lot easier than it seems. I have a few STRs that I had to do the same thing with while living out of state. Let me know if you need help at all setting it up or forming it

Great question @Brandon Allenczy..

1. Goal setting should only happen once. Once you do that, then work backwards and write out what it's going to take to get those goals. ie: 'My goal is to have 10k of passive cash flow in 2 years. The vehicle I will use is a value-add short-term rental. I will buy 4 rentals that will cashflow anywhere from 2500-4000 per month. 1 rental every 6 months. I need to identify the markets that will produce those kinds of rentals. I need to first build my team in the market that will allow me those returns(realtors, financing, management etc) Then make X amount of calls per day for networking or contacting sellers to get the best deal. How many calls is it going to take to find the 1 deal in 6 months.... If you find that number, then those are the habits you need to focus on. First, build the framework and specifics you have to accomplish your goal. Then find out the most important daily task you need to do every day in order to move that needle. Often times it is just picking up the phone and talking to 20 people a day. That will always get you farther than you currently are.
2. You need to focus on the Revenue generating habits. What is going to make you more $. If you don't have deals already in your pipeline. then you need to analyze them to find good deals and then make calls to acquire them. It's as simple as that

Hey @Jevon Reile... Correct me if I am wrong but If it's a commercial building, it all constitutes as the same time of income. Just depends on how you manage the rental. What is considered to be active vs what is considered to be passive. The business is active(so the retail and the STR business). But owning the property is still considered to be passive. You can create a different LLC for the active portion and leave the ownership of the building for the passive agreements. However, your best bet is to talk to a CPA who handles these things on a normal basis. I have one I can recommend if interested

Hey @Julie A.! I agree. Sure you can find deals in California and I'm sure if you are investing for appreciation's sake or maybe multi-family California works well. Or overall if you are involved in sales on the wholesaling/realtor side then Cali works great. However, I have built my investments on the long-distance approach. The ROI is overall a lot more powerful when you are buying rentals for 100k plus giving you the same rent as in California. There is a lot I can say on what states to look into or specifically what areas, but ultimately it's just about running the numbers through your spreadsheet and keep chugging along.

Congratulations! Great job @Lawrence Briggs!

@Mahmuda L. Being that this is a crazy long post and a lot to consider, I just messaged you.

@Anand Acharya This is definitely a unique situation to be in haha. However, what I can say would help

1. 1. Why are you looking to cash out refinance?
2. 2. Would you consider a HELOC so that you don't have to pay the new interest rates on a full new loan?
3. Now it all depends on why you are refinancing. If you are looking to do this to leverage your house so that you can buy a new property where cash flows like crazy... well then paying (-) cashflow might be worth it.... now it might be even better if you can leverage a HELOC in order to buy another property to produce a lot more cash flow!

@Erin Lytwyn when it comes to lending, I have found the more lenders you talk to, the better. A lot of people will just settle with one and just get the products they offer. However, I have found the more people you talk to as far as lenders the better. Then you know what your options are and what you can do

@Carl Cheung Hmmm, so this is one smart strategy. It'll be easy to rent out the basement for STR (I do it with my primary home as well) However there is definitely a complication when it comes to depreciating the basement portion. There are a few tax codes to pay attention to though and my wife and I had to weigh how to classify our personal home. There were a few things we had to do tax-wise that would allow us to save on that end of our home. I have an Asset/tax guy that walked us through it if you would like his contact. He is very knowledgeable in the space and has done very well!