All Forum Posts by: Peter Talbot

@Jordan Graham Hey! I actually did not end up buying here. I plan to look at spots in the midwest with some contacts I have there to explore. Happy to compare numbers for what I was looking at here though!

@Luke Carl thanks for the input! It's actually not so much the STR messages I'm too concerned about. Mostly looking for a "one stop shop" management software that can handle both STRs and long term rentals.

For folks who manage both short-term (vacation) and long-term rentals, does anyone have a software they use that can handle both? Most products seem to be made for one or the either. I've got about 7 vacation rentals and 5 long term rentals to manage. 

My key concerns are:

tracking check-in/out times for STRs and lease end dates for LTRs

consolidated maintenance requests all in one place for STRs and LTRs

I couldn't agree more. Trust but verify. As @Engelo Rumora mentioned in podcast #89, trust and partnering is a process and can take months, even years to build. Being up front with any partner (PM, lender, turnkey provider, contractor, whoever) that you want to take a few months to build trust and see if this is the right partnership will 9/10 times filter out anyone sleazy who's too eager to make a quick buck. REI is a get rich slow game for many. Building the right partners over time will set you on the right track for success in the long term.

Welcome and way to put yourself out there! The more you post the more you learn :)

Hi Austin - you've got a strong criteria thus far and I'd have to agree with @Michael Guzik and

@Thomas S. in that self-managing is probably the best way to go when you're starting out. You'll save yourself more cash flow that way. Once you grow, then consider using a PM and by then you'll have a great filter by which to vet them.  Work with a real-estate attorney to make sure you've got yourself covered with your leases and liability. When it comes to tenants, check out BP's ultimate guide to screening tenants. There's a plethora of info here on BP and you can no doubt self manage successfully :)

In terms of numbers, use the BP calculators to evaluate your deals; most newbies don't factor in all the expenses associated with owning a rental (capex, repairs, insurance, vacancy, etc). Prices are historically high, but I think you should be able to get at least 1-1.5% or more (rent to price) deals in Lynchburg. I'd add a rent to price ratio to your criteria as well, like a 1.25% minimum

As far as Lynchburg in particular, I'm not too much help, but I've talked to a few investors out there. What I've found is that the neighborhoods closer to the universities (e.g. Liberty) tend to be higher quality areas, newer construction, but higher prices, so you'll likely give up some cashflow there in exchange for higher quality tenants potentially. I'd set up up some time with a realtor there (filter him/her first and find one who has worked with investors or invests themselves) and drive the neighborhoods.

Keep us posted - looking forward to a future success story post from you!

Can't seem to tag you, Tim, but glad to hear I'm not the only one. I'm working on building that "financial runway" still and like you, am focusing on education as much as I can right now.

I just read @Scott Trench's book Set for Life and loved it, as I feel it was written just for me :) I'd like to get started with a house hack, but am not sure if that would be the best investment given my current situation. What are your thoughts in my stretching myself to house hack in my local market (San Diego) vs buying a cheaper multifamily in a lower-valued market (like Tulsa, Indianapolis, basically anywhere outside of CA)? What would you do if these were your constraints:

25 years-old, single, living in San Diego. 

I've got about 21k saved up in the bank  and am on target to make that about 26k by the end of the year. This is what I'd use for the down payment and any rehab costs/initial repairs, though I pretty much need to get tenants in there on day 1 otherwise my mortgage payment will eat me.

Based on what I've seen in SD, I'd be lucky to get a duplex for 400k. Using an FHA loan with low money down, I'd have FAT PMI which would eat into any potential cash flow

My monthly expenses are about 2,400

I make about 75k per year at my W2 job, which does let me work remotely whenever I want

To househack in San Diego or invest far away...both have pros and cons...