All Forum Posts by: Sandra Morrison

@Byoung Bae

I have long term rentals in Cincinnati area and invest remotely in a Florida beach market and a hiking/cabin area in STR.

I will tell you, investing remotely in a beach condo is a lot of work, and the guests are much more higher maintenance than a hiking destination.

 Also, if you can only afford a condo, if there is a natural disaster or any other construction needs, the condo association can keep your units under construction during your entire high season preventing you from renting. They can also have untimely $40,000 and greater assessments that wipe out any profit.  Another point the condo association can regret to forget inform you that there are no railings on your balconies during a construction project that they indicated was complete and your guest are the ones that tell you, not the HOA, not the property manager, not your Airbnb rental managers or cleaners. Ask me how I know ;-) I have many more stories but  my family has been going to this beach for 20 years and I have family in the area so there's a bigger reason why we own it than the ability to cover our expenses . It has appreciated faster than my other properties, but it is also the most expensive with the most short term regulations and the guests/tenants with the highest expectations that are hard to please.

 My cabin in a hiking location, is freestanding and I control much more in terms of project timing, and, expenses. The guests have lower expectations as they are just there to enjoy the outdoors.

Hiking cabin cashflows better, appreciates, no STR regulations yet, and in general is much less headache. Plus I can drive there pretty quickly IF there was ever an issue.

I would suggest wherever you can build your team and your boots on the ground and can have eyes on it (a trusted engaged family member or other) would give you an advantage.  If it is long distance STR, and you have to fly to get there and there is a high cost to entry then you need to really be able to withstand losses. Your reason for being in that market needs to be a lot stronger than cashflow and appreciation. You have to have some stronger tie to that area for another reason to keep you motivated.

@Ying Tang

Look up calculating the loan constant. I use it to help

me choose between financing. I generally choose 30 year due to the loan constant and it giving me flexibility to pay it off in 15 BUT my loans are under 3 percent so I can definitely invest that extra $$ in something more lucrative.

Quote from @Gene D Stephens:

Hi Chris,

I'm relatively new here and was just wondering if you could expand on your last comment.  

Thanks,

Gene

One can move old IRAs into a self-directed IRA (Equity Trust, Inspira/Quest, Etc.) and then use the funds to invest in or buy and hold real estate (also other alternative investments).

@Apryl Skahill

My husband is also very risk averse. His family made their money with W2s and the stock market. My family made theirs in real estate (house hacking a private money funded 4 family when I was little) so two different philosophies. He is an engineer and pretty risk averse. We started with house hacking a duplex that was listed as neglected on the mls. We took a break raising our kids and then I got much more into REI starting in 2015. I liked student rentals and I found that didn't motivate him. It turns out he could like airbnbs that needed minimal DIY work. It keeps him interested and busy but he sees I was right on with my student rentals compared to the stock market. It has built trust and now I invest in my SDIRA in real estate and he invest in stocks but the airbnbs is one of the many real estate strategies and happens to the one he could get behind.

I have been Quest client for 6 years and this transition is beyond anything I have ever seen and my career was putting new systems in for companies.

I am trying to get a deal closed and can’t get a response. My borrower is irate as it has been 2 months. I have another deal and worried I won’t be able to execute so perhaps I will do it with my other SDIRA custodian to be sure it will close in a timely manner.

Quote from @Spencer Ware:

Looking to start expanding portfolio.  Would like to be more hands off as well. Seeking connections, advice, deals. Thanks 

Welcome to BP and real estate investing. I am an investor in Cincinnati (not an agent/realtor), a native Cincinnatian and enjoy talking with anyone interested in the area. I volunteer and host an online group for our local chapter of the Real Estate Investors Association (REIA). Cincinnati and Columbus chapters are very active here and nationally and a great resource for networking, recommended contractors/vendors and education. Please message me and I can answer any questions you may have on real estate, local meetups or the local area.  You are also able to enjoy all of the resources Bigger Pockets offers here. Congrats on taking the first steps!

@Joy Daniels I have one of my STRs in that market on Anna Maria and each "city" on that 7 mile island has different STR rules. Plus the added requirements around getting drawings and general contractor for even adding a tiny closet. Something has to get better in that market as the regulations are too confining and essentially up to interpretation by the city explore you engage with.

@Jules Aton

We have started marketing to our guests as it is cheaper to keep a customer than to find a new one. What ideas do you have around retention?

@Steve Englehart

Get your retirement funds into a self directed IRA. I did this in 2019 and bought a student rental wholly in the IRA. I have someone take care of scheduling maintenance and leasing it up and rents are paid directly into the IRA . Definitely join your local chapter of REIA (real estate investors association) or join one of the ones that are fully online (Columbus and Cincinnati). I host the online women's for our REIA and will be happy to answer any questions if you DM me. Definitely don't cash out your retirement funds.

@Angela Wu

Please message me. I live and invest in greater Cincinnati area and 2 other states. I am not a realtor, just a fellow investor. I co-host an online women's investing group for our local REIA and would love to connect.