All Forum Posts by: Richard Elvin

 One way to tell is look on Airbnb and see what's listed, then look at the calendars. This only shows what is currently rented though. Several of the sites @Andrew Bosco mentioned show historical/last year occupancy rates as well.

@Travis Timmons After researching for the last year or so, I'm inclined to agree with you in that I'm not sure if STR is worth the trouble vs LTR. It would have to have a purpose beyond just the "ooh, shiny!" factor and be enough of an income bump to make it worthwhile.

I'm still in the planning/searching/learning phase of this, so take anything I say with a grain of salt. :)

I would stick to places you can drive. Researching online is great, but actually putting eyes on the property can help you avoid mistakes. Most properties are listed by their legal description, know how to tell what you are looking at. There was a property that came up last week on this forum where the property appeared to be a decent looking house, but was actually the lot beside the house. I'm betting someone (not the OP here on BP) overpaid by orders of magnitude for that lot. (Everything online Zillow/Google/Realtor showed a picture of the house)

I'm curious about your strategy of, "I’m planning to buy the tax deed and immediately turn around and sell it to another investor to fix and flip it. Obviously, I’m realistic and would give a good price on a deal. I would need a market where there are already investors present.". 

Why wouldn't the flip and fix investor just buy the property at the tax sale? Or do you intend to hold it until after redemption, then sell it?

I 100% agree. As a friend of mine would say, "That's a self correcting mistake!". 

What jumped out at me with the listing is the countertop that overhangs the cabinets, with sharp edges about head level for a small child. That's an accident waiting to happen...
Likely the clientele will chalk it up to a learning experience, but I would want those corners rounded!

That and they have "6 40 x 40 horse pens", they even mentioned that twice. The listing kinda reads, "We have 6 40 x 40 horse pens! Oh yeah, there's a house too.". 

@Bruce Woodruff "I thought cowboys were poor.......". After paying for the truck, the horse, and the trailer, they are poor! lol

@Ryan Marble The book by Avery Carl, Short-Term Rental, Long-Term Wealth, is a great intro. 

I've found that there are two (at least) overview theories on locations: Get a property in an area that you like to vacation in and can use personally or get a property that cash-flows and use that cash flow to vacation wherever you want. I tend to think the latter idea fits me better and keeps me from being as emotional when looking at potential properties. (That said, I don't currently have any rentals and my experience is in LTR's.) YMMV

Regardless, narrow down your market and then work on being the SME about that market. 

I am interested in Savannah, GA. I've researched the regulations, where they are applied down to which side of the street, (seriously, the rules are different on one side vs the other of certain roads, County vs City) and that has given me the confidence to quickly determine if a property is a no-go (for me at least) or worth a deeper dive. My wife and I had a goal of buying a property by the end of this year, but decided mid way through the year that we were not going to force the numbers just to own something. Cash flow is difficult if you are using leverage, which I would be.

Last tidbit, be careful with 2021/2022 numbers, there was a revenge travel boom that may not be accurate going forward. 

Hope this is helpful from what I've learned over the last year!

I've been a bit concerned also, even checked out the news local to him. Nothing to report...

@Ade Brown "Here's my issue, what happens if I do not have the money to purchase the property after the lease expires and the seller does not want to renegotiate? Do I lose the value of the renovations and I just have to walk away?". Yes. They would then be free to walk away and put it on the open market at current value, including whatever renovations and upgrades you added. 

If you're not sure you'll have the resources to purchase at the end of the lease, can you write something into the lease that would allow you to sell the property? That way you would have a contigency so that you could profit from your endeavors. Keep in mind that the more unique a property is the longer it will typically sit on market, so make sure you're not pushing deadlines if you decide to sell.

Another thought, could you work out some type of owner financing? That way the property would legally be yours with a mortgage vs theirs with you having a lease & option.

Best to you however you move forward!

@Bruce Lynn I'm working towards that! lol 
I love sleuthing through tax records, kinda weird that way, but I've always wanted to know the background on a house before I put in an offer. So digging through data is second nature at this point. Anytime I'm looking at data I want the legal parcel number to match what I'm looking at. I was looking at a house listed on the tax sale in Athens, 45 minutes north of me, and something didn't add up. The property was listed at a starting bid that was too low for the ~$365k decent looking house. After some digging, what was actually being auctioned wasn't the house, it was a decrept former gas station. The address listed on the tax sale was the former gas station owner's home address. I'm betting someone overpaid for a enviromental nightmare on that one!

There's not a lot of tax sales in the area's I'm interested in, Bradley/Polk/Mcminn Counties of TN. So I can pretty easily research almost every property that comes up.

I'm really new to this, so if there's anything books/learning materials you would recommend I'm interested in learning!