All Forum Posts by: Matt J.

@Paul Sandhu got it that makes sense! Sounds like you have a good thing goin!

LOL are you running a bunny ranch type of place or what do you have going on Paul??  

Yeah debt to income we wouldn't qualify for a vacation loan at this point in time, so I'd basically have to do it as an LTR loan. I wasn't thinking of using the STR as income qualification for future deals necessarily, just was wondering if getting a loan on an investment property based on rents that a long term rental would bring in is the way to finance an STR without going the vacation home loan route. Does that make sense?

So after a year, then I could use that year's income towards qualifying for future loans? 

Thanks for your input!

I haven't found any professional managers outside of traditional property management firms focused on long term rentals. Does Air BnB or VRBO have a feature to automatically adjust to dynamic pricing? 

@Jon Crosby thanks Jon, so do you basically finance it as a long term rental and then utilize it as an STR? That was my plan was to buy a place that would cash flow as a long term rental with the short term rental potential being extra icing on the cake.

Hey everyone. We currently have 3 long term rentals that have done pretty well for us and for our next purchase, I want to dive into a short term vacation rental.

This will be located too far away from me for me to handle the turns or maintenance issues, so a lot of the operations will need to be outsourced.

Here’s what I believe I need so far.

Financing. Are there banks out there who specifically lend on a BRRRR type basis for a short term rental?

Cleaning company. I believe I’ve read a few posts about using a cleaning company to come in and take care of each turn in between guests.

Licensing with the local municipality and making sure any property is within compliance.

Handyman. Having a handyman on call for any maintenance issues will be key as well.

Furnishing the property. Tv, bedroom furniture, couch, wall decorations, etc. Any go to stores for cheap items that are durable?

Budgeting for cable/internet, utilities, and the other normal expenses involved in a real estate asset. Anything I’m missing here?

Setting up a lockbox paired with an app for guests to do self checkin along with forms for them to fill out noting any issues with the property prior to them checking in.

Amenities like a bbq/grill, patio furniture, etc. Yay or nay?

Professional photographer to really make the property stand out on air bnb and vrbo.

Price out comparable properties in the area to properly analyze deals.

Is there anything I’m missing here or that you would add?

Thanks in advance!

Nice work, Eric! Did you have a relationship with a construction company in Duluth already, or how did you find them? That's been my biggest challenge so far; finding a GC to work with on larger projects. 

@Kai Sato-Franks

For most people, following this rule strictly, they’d probably never buy a rental property.

Is it safer? Probably.

But if you wait too long, and don’t intelligently utilize leverage, you miss out on appreciation, cash flow, tax benefits over the years that you sit on the sideline.

I’ve heard some people say Dave Ramsey is great for people who take on credit card debt indiscriminately, can’t stick to a budget, etc. But not so great for building big wealth.

@Anthony Wick there’s a lot of politics I think with the hotels in town. The hotel mafia lol.

Seems like a pretty solid deal, nice work! Brittany's an awesome agent to work with.