All Forum Posts by: Michael Hill

Thank you for the replies. Do you feel you always need to buy under market value in order for cash flow? I do not believe I would be able to find a vacation rental for under market value in my area in the current economic climate. Should I just save and wait for the market to change?

Thank you! This is great!

I want to buy a condo in a vacation area near where I live. I would use it for family as well as rent it out (demand is high and renters are great here). Here are the numbers I have come up with. I imagine I am missing something big as it seems way too simple.

Condo is around $400,000

I would put 20% down.

Cost per month $2,280 (mortgage, taxes, insurance, hoa)

Most rent between $250-$350 per night. However, it's a seasonal destination (May-September is hottest).

If I rented it every day for a month, it would generate at least $7,500. I would need to only rent it for 10 days a month to cover the mortgage. I would handle all managing and cleaning as I would have the time (long story, but I'd have a lot of free time).

I understand there are costs such as furniture, etc. but since I would be doing all the managing, could this work in theory? Thanks and I appreciate any education you can provide.

Saving for a rental property. Selfishly, I’d love to buy a condo in a vacation town near where I live. I love the town and want it for my family, but I’d like to rent it out as well. Many do this in this town. I’d say most are between $350,000 to $450,000. I’m saving for 20% down. I love the idea of having others pay for my condo.  I’m in the process of acquiring some fixer upper skills as well. I’ll have the 20% by May. However, I’d also like to scale to multiple properties and have some cash flow. Would you buy a vacation rental or go a different route such as a multi family property elsewhere? Vacation rental market really excites me. 

Thank you Timothy! That is very valuable advice.  I will definitely continue to do my homework as I am way too new at this point to jump into anything. 

 Thanks Rob!  I will definitely get connected with you.  

Thanks, Ethan! I look forward to  connecting with like-minded people on BP! 

Timothy, 

 Thank you very much for the reply.  This is exactly the kind of advice that I needed. 

 You seem to be successful in the area  of real estate that I am interested in.  I hope you don't mind me asking you questions from time to time. 

 Do you happen to have any specific criteria that you follow when looking for vacation rental deals?  For instance, 20% below market value, 20% down, cash flow amount, etc?

Hello!

New to the forum. I have been devouring the Bigger Pockets podcasts for about 3 months now. I am a very "newbie" when it comes to real estate investing. The prospects have me salivating and I cannot get enough of the podcasts.

I have a brief newbie question if anyone out there wants to help (or make fun of) someone very raw. I look forward to learning a lot and someday contributing to someone new like myself. Thanks in advance.

So I live in a vacation town on the shores of Lake Michigan. I have been renting a house all winter for $800 per month as the vacation rental market here is geared towards summer weather. Renting here for the short-term has given me the bug to invest myself. The house I am currently renting goes for about $370 a night in the summer (Late May - Early September).

There is a property for sale down the road for $350,000, which also happens to be the "Zestimate" for the property. It's a 4 bedroom, 2 bath, in good condition, in downtown and in walking distance to everything bars, water, shops, etc. If I were able to get a loan on this property I figure I could gross about $35,000 per summer give or take in rental money. I don't have much other information than that and I know there is a lot more to it, but just from the raw data above, does this sound like a good/bad idea? I would live in the property in the winter and rent throughout the good weather season. I can live with family in the summer for free, which is a nice bonus. I am not stuck on this property, but rather stuck on the idea of a vacation rental in the area. Most homes are $350,000 or more.

Any thoughts are greatly appreciated. Mike!