All Forum Posts by: Nathan M kiefer

I am thinking about using gap funding for the down payment on my first rental property as a buy-and-hold investor. I don't have any money saved up but don't want that to hold me back from getting started in real estate investing. I want to ideally find an off-market single-family property as my first deal using g this strategy. Would that negatively impact my ROI? I'm not interested in seller financing as an alternative because I'm an introvert and not very good at sales. Is this a wise move? Is this strategy even possible???

Save your money, investing as you described is a falacy in REI. While possible to do after you have many properties where it can be paid off quickly I would not recommend doing it out front.

using this method to circumvent saving cash will only lead to over leverage and a false feeling of investing to slow you down later

2 Votes

Lol on the "loophole" trigger

0 Votes

Portland, Oregon

Personally the hot tub is only a perk if we like the house so as referenced here themed room and location win the day.

hot tub is a blessing or a curse - either they are spotless or nasty and there seems to be no in between.

We would never not rent a str because it did or didn't have a hot tub but if we had two similar places we would most likely book the property without the hot tub.

0 Votes

Orlando, Florida

1. No str restrictions, many on this forum will tell you it's like finding a unicorn but those areas do exist and for good reason.

2. Cash flow, we don't buy any properties less than 50% of what they're worth, all our properties we own make positive cash flow in a modest way and these tow items are deal breakers if they don't pass that's test for us on str.

0 Votes

Orlando, Florida

Bigger issue is why? Sounds like moisture intrusion issue, both options suck. Unless it is at rough in stage it will be compromised unless this has no interior walls, what's the rest of the story and why does it need overlayed( which is what you are suggesting) or removal which has issues of its own with load walls unless all interior walls, cabinets etc are gone.

sounds like a raw deal with water issues or structural issues? I'd pass unless it's some phenomenal deal?

0 Votes

Quote from @Emily Davis:

Hi there! I am new to short term real estate investing, looking to nail in our first property this year. I have been looking in Santa Fe NM area, as well as Gaitlenberg NC, Myrtle Beach, or Savannah Georgia. Trying to nail in a location that will have high volume of renters. I'm happy to hear any suggestions you have around specific neighborhoods to look in. I am also curious what is the wise way to buy, in terms of price/size of home. I prefer not to spend over 350k, but as I said, this is my first time so looking for any guidance and ready to learn!

Ocean lakes in Myrtle is probably your best bet. 350k may get you a 3/2 which will gross around 45k per year. 2-3 years ago you could pick up a 4/4 or 5/3 for that price so you may be priced out but there are a ton of condos for that price of 350k although I wouldn't buy a condo there

we have two 4/4's but we stole them before pricing went crazy here in ocean lakes.

if your diligent you can still find a deal but is much harder now

0 Votes

Quote from @Ethan Swat:

Im looking to attack the golf tourism market and am wondering where golfers seem to travel the most. I know Myrtle Beach, Scottsdale, and Pinehurst seem to be popular locations. I am worried Scottsdale may be too oversaturated. Any thoughts/recommendations?

Myrtle beach is a very hot golf market with tons of courses. We book at least 4-5 golf trips per house in our strs every year at least

1 Vote

Quote from @Kate Stoermer:

I would talk to your lender - there might be state specific issues but I know alot of folks (myself included) that bought only in one name. It was just easier.

Agreed this is how we did it as well

0 Votes

Phoenix, Arizona

Quote from @Brian Barch:

We make money on the cleaning fee (its a long story), and so there is some value in the number of turns we do.

A lot depends. I think when one is starting out, you want to go lower than competition, but not so low that you attract the wrong crowd, so that you can build momentum and reviews.

But then over time, work towards a nicer property than the competition, and higher rates, even at the expense of a little occupancy. Both less wear and more options for when I want to stay there. Also more options for pest/hot tub care.

Year 1 (2023) we had 79% occupancy, and frankly I think we were a little underpriced. Trying to find the sweet spot this year, we raised our prices and we'll see what it does to occupancy. It certainly leads to a shorter booking lead time, but haven't yet seen a drop (it's only been 6 weeks).
All that said, I loosely think of it as a weekend sweetspot, and a weekday sweetspot

Awesome to hear, exactly the kind of feedback I'm looking for, sounds like you are doing well!

thanks for the response!

0 Votes

Myrtle Beach, South Carolina

Quote from @Patricia Andriolo-Bull:

Quote from @Nathan M kiefer:

Quote from @Patricia Andriolo-Bull:

Am I understanding that the current market value of the properties are over $1M each? If that’s the case then the right thing would be to sell the properties. You can make a lot more on $2M than the $138k revenue less deductions.

Nope $1.2mm both combined...650k on left, 550k on right

Got it. Still, I wouldn’t look at just occupancy and ADR. You’re netting ~$70k on $1.2M. Definitely not bad but another way to look at investment options rather than just COC.

Appreciate it. I have a 50k note on them and paid $670k, we're a buy and hold

we have 20 properties now and it's very intriguing to sell for sure as we are about 20% leveraged overall but we're holding tight and keeping a good cash flow

2 Votes

Myrtle Beach, South Carolina

All Forum Posts by: Nathan M kiefer

Nathan M kiefer has started 11 posts and replied 345 times.

Post: How does everyone feel about using gap funding as a buy and hold investor?

Post: Why this year the best season to purchase a turn key coastal STR is Spring

Post: STR features and their effects of bookings.

Post: Short Term Rentals / Vacation Homes - What Is Most Important For You?

Post: verbiage for repair..

Post: hi! new to STR investing

Post: Best markets/locations for golf visitors?

Post: Purchasing a property with spouse.

Post: 31.23% occupancy, OH NO!!??, yeah right!

Post: 31.23% occupancy, OH NO!!??, yeah right!