All Forum Posts by: Ryan Cleary

Thanks everyone! So I have a stupid question. Where is the best place to look for the short term rental laws in a particular area?

For our next deal we were considering a house about two hours north of New York City in which we would Airbnb/ VRBO.  This area is in between two major ski resorts and has year round attractions.  A lot of the Airbnb owners in the area weren't too affected by COVID and everyone I have spoken to has good things to say about their experience.  That being said, do you think short term rentals are a good idea given the current climate, do you see things getting better or worse.  Thanks!

1% rule is (almost) nonexistent on Long Island.  The RTP is not even close.  That being said you must have found a great deal because in order to cash-flow here most people end up putting down nearly 40% and by that time the cash on cash is so low that its not even worth the deal.  So it really depends on how much you are putting down and for me I have found that the return on investment is so much higher when you look into other markets.

Well, it really depends on where in Brooklyn.  Almost each block is a unique market here.

So in the last year I have bought property in New York (where I live) and Florida and the cash on cash return is pretty similar as long as you put a negative sign on the New York number.  Not joking, literally receiving 9% in Florida and -9% in New York.  Plus the landlord laws are terrible up here.  I will continue to pursue Florida.

I’m curious as to how much rent the H/A covers. Let’s say rent is $1,000, will they pay a standard amount for each tenant or is it different from tenant to tenant? Asking because if I have a tenant getting aid, just curious as to how much I would lose if I only got the government check. Thanks!

@Monica Lauzun

So cool! You guys are on a great path, I hope you’re on to your next deal :)

For me, I would run the numbers in a few ways.  First I would take the outcome that you expect within the first few weeks (having a tenant paying you rent while you live in the other half).  Next I would run numbers on not having tenants at all (Are you able to cover all your expenses during worst case scenarios).  Next I would run numbers for a few years down the line when you look to leave this property and rent both sides out (I always try and get a 10% cash on cash, but each market is different).  Hopefully it works out in your favor and not only do you save money each month but you gain much more equity in the process!

I agree!  my girl friend is smarter then me lol.  Good luck!

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Riviera Beach.

Purchase price: $220,000
Cash invested: $61,000

First long distance investment

What made you interested in investing in this type of deal?

Living in New York makes it nearly impossible for someone to start out with limited capital. Long distance investing was a home-run for me.

How did you find this deal and how did you negotiate it?

Found it on the mls.

How did you finance this deal?

30 year fixed at 4%

What was the outcome?

All in all this was a pretty boring deal. My next deal I would like to look for value-add and get creative with financing. Turn key with 25% down is just money lost in my opinion.