All Forum Posts by: Mitchell Hamilton

I've fallen into the trap many new investors fall into…analysis paralysis. I realize I need to just dive in and purchase my first property. I always assumed I would start with an LTR, however given the rise in interest rates and soaring property values, this might not be the best time to get in. Rather than sit around and wait for things to cool down, I've started exploring STR's. To me this makes more sense because from what I've read there is more cash flow potential in STR's which can help offset the rise in interest rates and property values. Finding a good LTR often times seems contingent on finding a great off-market deal. As a new investor (and maybe this is an excuse) I think finding a great off-market deal will be more challenging than ever especially since I'm new to real estate investing. Also, from what I've read, it's much easier to find a STR property off the MLS vs. a LTR that will actually cashflow. I'm coming to the conclusion that the best way to "get my feet wet" in real estate investing is to start with an STR. I would love to hear your opinion on this along with any pro's and con's I'm not considering. P.S. I do know a con is extra time managing the property, but right now I'm ok with that. Thanks for your advice!

I've fallen into the trap many new investors fall into…analysis paralysis. I realize I need to just dive in and purchase my first property. I always assumed I would start with an LTR, however given the rise in interest rates and soaring property values, this might not be the best time to get in. Rather than sit around and wait for things to cool down, I've started exploring STR's. To me this makes more sense because from what I've read there is more cash flow potential in STR's which can help offset the rise in interest rates and property values. Finding a good LTR often times seems contingent on finding a great off-market deal. As a new investor (and maybe this is an excuse) I think finding a great off-market deal will be more challenging than ever especially since I'm new to real estate investing. Also, from what I've read, it's much easier to find a STR property off the MLS vs. a LTR that will actually cashflow. I'm coming to the conclusion that the best way to "get my feet wet" in real estate investing is to start with an STR. I would love to hear your opinion on this along with any pro's and con's I'm not considering. P.S. I do know a con is extra time managing the property, but right now I'm ok with that. Thanks for your advice!

Thanks everyone, I really appreciate the advice!

As a new real estate investor, I've been leveraging the BP rental property calculator to analyze deals and I keep running into the same issue... the results of the calculator are highly unfavorable with every property I analyze. I'm starting to think I'm highly overstating my expenses and that is why I continue to see unfavorable results (specifically negative cash flow). I'm currently setting my Repairs and Maintenance expense at 10% of monthly rent, Vacancy at 6%, Cap Ex at 10% and Management Fees at 8% (the calculator advised me to use these %'s). My question is, to more experienced investors, are these realistic expense percentages? It seems as though these are the primary expenses that are causing my negative cash flow on paper. I'd love to get your insight, and greatly appreciate the advice!

Hello! After spending multiple months learning about real estate investing, I've finally decided to make the move and begin searching for my first property (multi-family house hack)! I'm looking into different financing options, and because my intention is to find a fixer-upper, I am considering the FHA 203(k) loan. Everything I read online makes it sound like this is the best option for my situation. I just wanted to get some opinions on the pros and cons of an FHA 203(k) loan, and if there are other financing options you think are more appropriate. Thank you so much for you help in advance!!