All Forum Posts by: Nirmal Khanderia

IKEA has some beautiful pieces in market place that will enhance the value of your vacation rental. However, getting all the furnishings from IKEA may not be a good idea for a vacation rental. It will not get the quality of guests you are looking for, your gross revenue will have a negative impact and you will need to replace the furniture more often due to heavy usage.

Christina,

Here is my take and my 3 year plan. Between the two STRs you own, you have enough cash flow to be financially free. However, managing STR is not passive. You can use the accumulated cash to purchase few of long term rentals - 15-30 unit apartments. These will be much more passive with the property manager managing the apartments. Thus you have two income streams from two different asset class and also you are minimizing your risks.

James, if you decide to self manage, Avery Carl’s book, “Short Term Rental; Long Term Wealth” is a must read. It will walk you through the entire journey step by step with all the do’s and don’t spelled out clearly.

@Zach Fridrich, I read Avery Carl's book " Short Term Rental; Long Term Wealth". This book is so complete, practical and business like. Tells you what to do and WHAT NOT TO DO. She makes the entire journey so simple and easy.

Now I have scheduled a consult with "The Short-Term Shop" for further course of action.

@Shannon Vistisen I did a HELOC last year. Personally, I prefer HELOC over refinancing. With HELOC, you can pull funds as needed and pay interest only on the amount drawn. With STR investing, you can use the cash flow to fund the HELOC back and very soon you will have funds to buy your second STR. And keep repeating the process.

Hi Shannon,

I am in the same boat as yours. 

I started by listening to the podcasts for Short Term Rentals on Bigger Pockets. 

And read Avery Carl's book " Short Term Rental; Long Term Wealth". This book is so complete, practical and business like. Tells you what to do and WHAT NOT TO DO. She makes the entire journey so simple and easy.

Now I have scheduled a consult with "The Short Term Shop" for further course of action.

Great post Donald. Congratulations on the first successful flip.

I use Linnemann Realty for SFH for more than a year and very happy with their services.

@Robert Crowley, typical construction cost for MF housing including land , permits, taxes, etc. can be between $100-150K per unit. For 200 units, it will be between $20-30M. A lot depends on having an experienced general contractor with good knowledge of permitting process, good civil engineer and good architect.

@Michael Mullins, 

In the report, you have assumed that the purchase price is $41K, whereas the sales price is $55K. Killeen market is pretty hot right now. Good deals are gone in less than 24 hours. Just wanted to make sure that the numbers look good with sales price of $55K.