All Forum Posts by: Pearce Trenary

@Collin Hays I agree however my funds are limited and I have to set aside a healthy amount for rehab and furniture. I think it is best to get into a property now and start getting cash flow than wait

Do you know of any great locations that I could get into an STR for 450k or under? I have the ability to go higher however I want to put a good bit aside to furnish the STR and make it stand out. If over 500K is needed I am able to borrow from a family friend however would rather not take this path.

I have been looking at the Forgotten Coast, Emerald Coast, Blue Ridge, Smokies, and Branson.

Open to all locations. I will be living in Florida however do not care about the location. This is primarily for investment purposes so am mainly interested in ROI

Thank you all!

I am a new investor and have a goal to start building my real estate portfolio full of cash-flowing investments. As a first-time buyer I know there are a lot of incentives to buy a house however it would not apply if I got an STR. I have put my two options below and I would love to hear your opinion on which you believe is the best route to go.

Option 1 (STR and 20% down): I have found a great location for an STR that should have a COC return of roughly 37% based upon all the data I have pulled. I also think this area will grow over the years. I plan on self-managing and have a mentor who has provided me with the tools to do so. However, I would have to put 20% down which would take the majority of my investing cash.

Option 2 (House Hack and 5% down): I could put less money down into a house or duplex and house hack in Orlando (would be LTR as the area we will be in is strict on STR). Then I would hopefully be able to get a second home loan and put 10% down on a STR in a year.

Question: As a first time home buyer is it best to buy a house and rent out a room to friends which would enable me to put less down or should I put 20% down on a STR that I know will cash flow very well however it will take a good bit of my investing money? I do have a decent job so I would not be in a bad spot by investing the majority of my savings

@Ken Boone Agreed, that is the concern out there is I would need a lot to really make it stick out from the rest. 

thank you @Brian T. Grooms that was super helpful!

@Gary Nelson I will direct message you!

@Jefferson Brown Thank you! The competition on the smaller condos does worry me and I believe a condo is harder to stick out whereas I believe smokies are easy to stick out (campfire, hot tub, activities). Do you believe the smaller units may not be as desirable as other areas with the competition, HSA (will look for a low cost one), and insurance cost?

I am currently working through buying my first STR and am looking in the Destin, Smokey, and the Branson, MO markets. Out of these markets which one do you believe is best in terms of the greatest monthly return on investment? I am also open to other areas if the numbers work. My purchase range is 350-550k but would like to stay on the lower end of the range.

From my research, the Smokeys look the best on paper but the properties are usually out of budget or on the upper end. With Destin, I worry the HOA and insurance (hurricane) cost could cut out a lot of profit. Any input would be greatly appreciated

Thank you @Ab Basu! All great information. After talking to many people, like you, I am not going to shy away from being far from my rental. I have done much research and am looking at the Smokies and Branson, MO. I will update everyone on what I end up going with.