All Forum Posts by: Shauna Mooney

Trying to wade through the many apps and management tools for STVR and AirBnb properties has me wondering- 

What's the ONE TOOL that made managing your property so much easier? 

What's the ONE THING that made your property stand out? 

What's the ONE ACTION that made your rental more profitable? 

Nathan not sure if you're still looking but Southern Belle and Tybee Vacation rentals are both reputable. If you look through Airbnb listings you'll also see a few smaller boutique agencies as hosts, you can request a booking to be able to PM them. Most I've chatted with are very friendly. 

And as everyone on the forum tends to say..."self manage you'll make more money" LOL. (I'm currently deciding between management vs DIY myself.) 

Where's your property? 

Thank you so much @Jon Crosby - that's the exact mentality I'm trying to have, the article was super helpful. :) 

@John Underwood absolutely still considering self-management. Waffling between "jump in with two feet and keep all the profit" versus "ease in slowly, make a little bit by the time you sell, and enjoy time at the beach" 

I think the PM has the potential to pay for itself- between the marketing, repeat customers, and the community being primarily professionally managed units. I've rented from them and I'm not sure I can provide the level of service they're doing...they're pretty awesome! Besides the workload, my concern is that I'd be on the lower end of the potential income spread by DIYing. 26% is nothing to sneeze at though. 

For worst case scenario...do you assume low bookings, or zero bookings? 

@Jon Crosby appreciate this insight! Yes, a whole lot to unpack...I know I'm a little early in the process, but it seems like the BP community loves a fireside chat about hypotheticals. :) 

The 14 days don't count for maintenance...meaning, we'd have to take 14 personal days but then anything above that can be written off? Which brings up another point I've been wondering about- with a 2nd home loan, does it have to be in my name as a "personal vacation home" or can it still be under an LLC/Land Trust for protection purposes?

As far as losses; it really seems like these properties are historically consistent with their income - but you're so right about having that math solid. I should see if management will chare income info from a hurricane year. What sort of returns do you personally look for in a STVR to be out of that over-leveraged window? I've heard 15% COC minimum?

Thanks again for your info.

Hey there BP investors- would love to hear opinions and experience with beachfront condos in historically short term vacation rental areas. 

The specific units I'm looking at are 1 BR/1 BA with a water view and pools
Can sleep anywhere from 2-6 with the addition of a pull out couch and a small bunk area for families
$220K (Unrenovated) - $250K (Renovated) 
Similar units in the same building rented for $29K (this year) but "Closer to $36K in a stable year" (per management) 
My guesstimated costs will be $1500-2000 monthly using a 10% down vacation home loan, I'm considering using this management company at 26%

The location is Tybee Island, Georgia. Historically plenty of tourism, STVR are the norm and aren't likely to be capped or deal with new legislation, obviously subject to the occasional hurricane. Looking here specifically for personal use as well- we're a short driving distance (close enough to do last minute trips, but not manage the flips) love the beach, love Savannah, usually travel a lot and due to covid & a new baby we're thinking an investment is a better use of that vacation budget.  

Some of the questions/concerns that I'm currently dealing with (and please feel free to correct me on math..."I do art" lol) 

- What's the appreciation like on properties like this? Can I expect a pretty decent return in a couple years if I renovate? (<$10k mostly kitchen focused)  
- On that note: I started out looking at single family homes in the area, 2 BR/1 BA at $399K - the annual income seems to be about the same/a little bit more, but will I see a significantly better appreciation in a couple years ?
- Do any of y'all have specific guidelines or math you use when considering personal use? (aka the "happiness factor") 
- As I understand it, a second home loan is possible at 10% down as long as I use the unit at least 14 days a year, I can claim the income, but I cannot use the income potential to qualify for the loan? 
- I've seen a lot of info about emergency funds for LTR but how much do you usually keep on hand for STVR? 
- Napkin math 'worst case scenario': $25K down, $2100/mo expenses, $20k gross - leaves me with an annual cost of $6k/year -- which IMO would be the cost of a year's worth of travel, and then starting year 2 I'd cash flow positively?
- Napkin math best cast scenario: $22K down, $1700/mo expenses, $27K gross - gives us a 30% COC return?

What do you think? Again...I'm a total newb and I can decorate these units better than I can do the math on investing in them- HA! :) 
And if any of you have any personal experience with the area- please share! 

Sean, Dylan, how are things going in Tybee? I have rented from Tybee Vacation Rentals (magenta pink branding/logos) and I thought they did a great job from a renter's perspective. I was already working on getting an income property in 2020 and the pandemic has redirected my focus to something my family can use personally for the next year or two- as a substitute for all the travel we're not doing. We LOVE Tybee and Savannah and it's a short drive for us. 

Would love to hear how it's going for you, if you chose a management company or are self managing, what the income has been like, if it's lived up to your expectations! 

Thanks for the input, Garrett! If it appraises for $290,000 do you think it is wiser to refinance AND get a HELOC or leave the mortgage as-is and just do the HELOC? And when I tap into the equity of my home- does the valuation stay the same? (IE: I'm concerned that refinancing at $290K puts us at the top of the market and at risk for being underwater when it goes back down)

And do you have any opinions on the relative merits/safety of leveraging your primary residence to start investing? 

First post on the forums...please be gentle! :)

Considering all the options for financing my first ever investment property. One obvious way is to leverage our primary residence. Would love some experienced opinions on how (or if?) to get some equity out of our home: 

Current mortgage balance: $224K (and paying for PMI)
Current 'Zestimate': $271K
Comps: Neighboring house sold for $295K last year, and is already back on the market for $349K, another neighbor is listing for $400K within 30 days. Another possible comp sold for $339K, and there is one pending for $299K. I'm no professional appraiser, but these are all 3 bed/2 bath homes built in the same era (1920s) with incredibly similar square footage and lots (1600ft/.33 acres) and same basic amenities (none of us have garages but we all have recently renovated kitchen/bath) 

Besides the 'hot market' that is happening in our little town, we did also do improvements to the home since purchasing it- including a new roof, gutters, encapsulated crawlspace and landscaping. 

Sooo having said all that; what would y'all do in my situation? Should we refinance and get rid of that PMI and maybe lower our 4.25% rate? Would we be eligible for a cashout refi? Could we get a HELOC and use that for a down payment on another property? Or should we leave our primary well enough alone and keep saving cash/read Brandon's Book on Investing in Real Estate with No (and Low) Money Down for other options? (Side note: I'm gonna read it anyways.)

Just wanted some opinions from seasoned vets and professionals. Thanks!! 

Jake- did you listen to last weeks podcast #364? Avery Carl was the guest and she shared some great info on the Smokies.