All Forum Posts by: Maxwell Lee

Thanks for all the replies!! I love it. I will take more time this weekend to respond and reach out. 

Hi all, 

I have a handful of STR-specific questions I was hoping I could get some focused replies for. I've read/skimmed through dozens of airbnb threads but there are just SOOO many on this site covering a wealth of topics it's hard to find all the advice I am seeking.

1) For those of you living in a property that you also rent out (either renting out extra rooms or renting out while you are temporarily away) do you attempt to deduct your utilities? How would you do this...just estimate a percentage?

2) Those of you who hire it out, what is your average cleaning cost for turnover? How did you go about finding the best cleaner/service since it isnt a standard clean?

3) If you have experience running an "entire property" rental vs renting out individual rooms, do you have any thoughts or advice to share? So far my 2-bedroom listings have generated a ton of bookings but I'm starting to consider STR for my larger properties and I dont think I'll have the same demand on 3 bedroom or larger properties so it would seem to be far more effective to rent out by the room. But that certainly brings on much more to consider.

4) Insurance. What do you do? lol i know this has been discussed often but always open to more thoughts. 

Thanks in advance!!

Great job Sourabh! I created a google map for Indy neighborhoods when I first started researching/exploring the area. But your map is 100X more elegant and imo very accurate. 

@Joel Owens Incredibly unlikely that that is associated with Amazon's HQ2, but it could certainly be Amazon in some other capacity. They have been doing a lot of expansion all over the country, including quite a bit in the Atlanta region. 

@Caleb Heimsoth Gotcha, it makes sense and it's a good point. 

@Caleb Heimsoth Thanks for your reply! So you are seeking to diversify your types of properties? That's why you are in multiple markets. Am I interpreting you correctly?

@James Wise Thanks for your thoughts. So would the increased risk diversification be worth all the cons? How do you quantify the benefits of such diversification?

@Andrew Johnson That is actually a really sound, logical concern that I think is often overlooked. I know a handful of long distance investors who have purchased a few properties in several markets...I wonder their rationale on this. For me, it's not much of a factor since I actually flip in both of my markets and make some decent income that way. It's just a by product of having teams set up already and being so active in studying the neighborhoods and seeking deals. 

We are invested in two very popular secondary markets for investors. Good cash flow, low price points, steady growth projections, and these two markets are in very different geographic regions. It seemed pragmatic a year ago to diversify to that second market and I am very glad that we did so.  

So now I am wondering if it's worth going after a third market. Anyone out there who has taken a DIY approach to REI (ie not through turnkey companies) and is actively investing in 3 or more markets (meaning not just holding rentals from once upon a time but still looking and buying in at least 3) care to chime in? Should I try to enter a different type of market (lower cash flow, higher appreciation potential?) and/or should it be in yet another geographic region? (I am strongly considering a number of cities that are located in the states we're already in)

I don't want to do it for the sake of doing it, but rather because there are tangible benefits. It seems the cons are rather obvious (diverting my focus and attention, having to find another network of professionals I can trust, less economies of scale, more travel) and I'm not sure there are a whole lot of benefits. Fwiw, one of the reasons REI has been such a good fit for me is that I am an avid traveler and passionate about cities/urban planning. So I already spend a lot of time studying cities and their history, touring neighborhoods, analyzing how they've developed and progressed, and all that jazz. I've spent years doing this in dozens of cities across the country so it's definitely a passion independent of my passion for real estate.

Look forward to hearing the community's thoughts, especially from the folks investing in many markets. Thanks in advance!!

 Yeah, Dallas has a shot. I think if Seattle is any indication, then it will really be a long play, so there will be opportunities for "regular" investors to get in. In the immediate area prices may spike initially and then stabilize, but the growth over 5-10 years will be strong with a large and steady influx of high-paid workers. I haven't decided if I will try to make a play. It's not like I have infinite capital. If it ends up in ATL, Tampa, Indy, Jax or DC then there's a better chance I will try since I'm at least somewhat familiar with those markets. Chicago, Philly, or Louisville possibly as well since I've already been researching them a little bit. 

Anyway good luck to ya! 

 What did you mean by this?