All Forum Posts by: Michael Weigum

Hi @David N.,

I was in your shoes 5-6 years ago. I was on bigger pockets everyday and listening to podcasts and trying to figure out my strategy for investing. I knew I loved real estate and there are so many ways to make money, I just had to figure out what I wanted to do. After listening to some pros talk about making $200/month pre door on a long term rental, I decided that I wanted to do some easy fix and flips to get started and get some quick cashflow. I made a few offers and didn't get a deal. Then I decided to get into the short term rental space. I met with an agent who specialized in Investing in oceanfront property and I got my first condo. I put it up on Airbnb and VRBO and went live. The first year, we learned a lot. Even though I'm a research junkie, I can tell you for sure that you don't know what you don't know. There are certain things you can't learn until you are in the middle of the process. Best advice I got was to have multiple exit strategies. With STR, you can use it as a primary residence, you can STR, you can MTR, you can LTR. If you own it for 2 or 3 years you can use the cash flow to purchase more. That was my plan.

I would say invest where you live, or someplace you want to visit so you can use your place on vacation. Meet up with an agent who also is an investor and start analyzing deals. Pull the trigger on one and work through a year of renting it so you can learn the fine details of the market and the property. Feel free to message me with any questions! Good luck!

@Brian G. great question. Right now you can get beach front condos for $150k. They are ocean view, not ocean front. But they rent well. Gross revenue varies depending on management company. However, my oceanview condo did $38k GRI last year. I have one listed for sale currently that did $35k GRI.

Hi @Jeff Hines

Congrats on being bold and asking for help and advice from investors. If I would have done that at 28, I would have a lot bigger portfolio now. But, the best part about real estate is you can invest whenever you want.

Having money on hand is great but can create a dillema. You can invest it in a lot of different things. If real estate is the thing you are most passionate about, buy some short term rental properties to get more cashflow in your pocket.

You could pay all cash and buy an oceanview condo in Myrtle beach for $150k. Or you could Buy 3 condos and put $50k down on each one. STR is a good way to make cash flow, but you have to treat it as a business and run it like a business to make the most profit. Crunch your numbers. There are a lot of good calculators out there. Keep asking questions from people who have been there and done that. Pay more attention to people who have actually done what you want to do. Do your research, find a good local agent to help, and jump in!

Good luck!

Hi @David Acton

We rented our camper out last summer. It wasn't an airstream, but we had good luck with it. Our strategy was a little different. We delivered it to the campground after the guest made the reservation. We are avid RVers and there is a whole market of people out there that want to try it out before they buy one. That is a great target market for you. We used Airbnb, VRBO, hipcamp, rvshare, and rvezy. Good luck!

What market are you in?

Hi @Ryan Marble

Great questions. This is what I did.

Listen to Bigger Pockets podcast every day. Find a place you want to vacation in. Do your research (look on airbnb and see how many properties are for rent and for how much a night). Use some other tools to get some numbers. Go to a local real estate meetup group. Typically one night a month and meet and talk with other investors. Find a local agent that is also an investor and has properties similar to what you are looking for. They will be able to give you a lot of insights that the computer algorithms can't. 

Just remember, having an STR is not a (passive) business. It requires hard work to stand out among the crowd, but it is definitely attainable.

Hi @Cody Lewis

I'm an investor and a realtor in Myrtle Beach. I'd be happy to help with your numbers. I own oceanfront properties here and have the data for them. 

Hi @Alex Dixon, 

A couple thoughts I had, first would be, WHO are your marketing to? There are a ton of good ideas on this thread from others, but I also try to think about your target client, who are they, and what would they like to have. What is the draw for your place? If you are close to a hospital and you are marketing for a place for family to stay, that will have different requirements than a couples getaway in the mountains. 

When I bought my first STR, one of the things that we upgraded was the bed. Having a King Bed over two double beds made a huge difference in bookings for us. The old idea of more beds equals more revenue just wasn't the case here. Plus, that isn't my target guest.

Put yourself in the shoes of your ideal guest and think about what they would want and run with that.

My STR's are doing great. Actually my numbers are the same the last two years despite all the rumors of an Airbnb bust. I believe the same as what @Nathan W. shared. It's a business. Just like other businesses, some succeed and others fail and it boils down to management. Also, no one cares about your business more than you do. 

I also agree with @Michael Baum, STR in the right area at the right price will do well. One reason I bought my Oceanfront condo in Myrtle Beach is because it has all the criteria to do well. 14 million people visit here each year. That's a lot of demand. Second, it's the beach! and it's an easy drive from some major cities like Charlotte, NC. Third, the price of entry is still relatively low. These are all key factors for me.

Expectations are the big factor now. As others have said, if you think you are gonna just buy a property and start printing money, that probably isn't gonna happen. That's what math geeks like me enjoy showing people. The math never lies. 

Numbers are numbers, business is business, and expectations have to match that.

I love this question. When I first started out in Real Estate, I remember I saw an advertisement for a guaranteed 15% ROI. I called the guy and had lunch with him and tried to understand how he could guarantee that. My mutual funds and IRA were averaging 10-12% so I thought 15% was great. Now, I shoot for 20 - 25% CoC. I have a monthly target of $1500 per month per property. So far, that's how it's been working for me.

I like the idea of "passive" income, but I also know from experience running multiple businesses, that no one cares about your business as much as you do, so I participate in my business more. It's not truly passive, but my ROI is higher.

I would go on Airbnb and search for a rental in the location that you plan to build in. Look through what's available and what the nightly rate is. Try different months. Use different dates. Do some math. Reach out to the owner of your favorite ones and ask if you can pick their brain. A lot of hosts are willing to share info. I've done this in a couple different states that I am looking to buy in.