All Forum Posts by: Stuart Bartle

I don't know much about California so I cant touch on that. But if you are doing AirBNB just make sure its in a seasoned market that wont have some random policy change that makes it to where you can not use the unit as a short term rental anymore. Also underwrite the property as a long term rental as well. Just to be safe if you had to pivot. When it comes to out of state investing unless you are doing the construction yourself. It does not matter if you invest in Vegas or Florida the process will be the same. You're going to call your contractor. Then get photos and get third party verification that everything was done right prior to making your final payment to the contractor. I would rather you focus on finding a market that gives you the highest probability of achieving your goals. Rather then focusing on a market because it is closer in proximity to you. Then focus on improving your interviewing skills to help you build a solid team on the ground wherever you do choose to invest. David greens book on out of state investing is great. I more or less copy and pasted his interviewing process for property managers and used that to interview them. With a few little alterations. Lastly if your not sold on any market yet I have always done very well in and enjoyed military markets. We can connect and go over the pros and cons of investing in one if you would like. Good luck you got this!

@Stuart Bartle
If you are looking at investing out of state it doesn't matter how close the property is to you. Even if it's in Vegas or Flordia it's still out of state and will require a property manager for the day-day operations. Focus on finding a market that fits what you are looking for then build a team to help the property succeed. 

Hey Stuart,

Welcome to BP! Have you looked farther into the mid-west? There are some markets here growing at rapid rates. 

@Stuart Bartle welcome to the RE investing game.  I still have clients buying in Vegas, but it's not as common due to cashflows being hard to come by with the traditional 25% down financing.  

Taxes - Save yourself some headaches.  Pay for a service like Avalara to file your taxes.  The State of South Carolina is a nightmare to deal with on your own trying to stay compliant.  We let Airbnb pay our state tax and the Avalara takes care of the rest in local, hospitality and whatever SPLOST taxes they dream up.

Rental management - I have a strong opinion that you should not use an on-site or off-site rental management company.  Keep in mind that Myrtle Beach is a big destination for Bike Week (Spring and Fall), Youth sporting tournaments year round, golf and conventioneers.  Not to mention regular beach partiers.  These rental management companies will treat your property like a hotel and rent without discernment.  We switched to doing it ourselves with HomeAway and then 3 years ago switched to Airbnb.  We made a lot more money and had a lot fewer headaches and damages.  Find yourself a good local housekeeper, treat them well with the occasional bonus and they will be your eyes and ears.  Airbnb makes it too easy and I enjoy meeting the people.

The trick is to develop a process and stick to it.  Continually improve it to gain efficiencies and free up your time.  I bet I spend less than 10 minutes on every rental and we consistently rent 200 days a year.

Rental history - Unlike long-term rental cash flow, the history of a vacation property is not always translatable to how successful you will be with the property.  Remember that a lot of revenue is built on relationships with return renters and web sites like Airbnb where you build a reputation.  When you purchase a property, those benefits don't necessarily come with it.  You may be starting from ground zero to fill your rental calendar.

Sorry to hijack your post.  Hopefully my added comments will help potential owners in the post-purchase phase to be successful and buy more properties.  I know we plan to so I'll reach out to you @Jonathan Edmund when we get ready to buy again.

Good insight Jonathan.  As a short-term rental owner in this area for 15 years there's a couple of additional points I think anyone reading this would want to know.

Location - I have found that if your property has great photos and a very well-written description of its proximity to the beach, potential renters have more trust and book with you over a listing that just says "beach view".  Guests want to know exactly what they are getting.  We often host families from the midwest and upper midwest and that's a long drive to not be sure of exactly what you've rented.  Over time, guests will leave reviews confirming your description and this will further your credibility and trust.  All that just to say, don't think non-beach view properties are dogs.  We get $1350 wk. for a 2/2 in peak season for 1st tier.

Taxes - Save yourself some headaches.  Pay for a service like Avalara to file your taxes.  The State of South Carolina is a nightmare to deal with on your own trying to stay compliant.  We let Airbnb pay our state tax and the Avalara takes care of the rest in local, hospitality and whatever SPLOST taxes they dream up.

Rental management - I have a strong opinion that you should not use an on-site or off-site rental management company.  Keep in mind that Myrtle Beach is a big destination for Bike Week (Spring and Fall), Youth sporting tournaments year round, golf and conventioneers.  Not to mention regular beach partiers.  These rental management companies will treat your property like a hotel and rent without discernment.  We switched to doing it ourselves with HomeAway and then 3 years ago switched to Airbnb.  We made a lot more money and had a lot fewer headaches and damages.  Find yourself a good local housekeeper, treat them well with the occasional bonus and they will be your eyes and ears.  Airbnb makes it too easy and I enjoy meeting the people.

The trick is to develop a process and stick to it.  Continually improve it to gain efficiencies and free up your time.  I bet I spend less than 10 minutes on every rental and we consistently rent 200 days a year.

Rental history - Unlike long-term rental cash flow, the history of a vacation property is not always translatable to how successful you will be with the property.  Remember that a lot of revenue is built on relationships with return renters and web sites like Airbnb where you build a reputation.  When you purchase a property, those benefits don't necessarily come with it.  You may be starting from ground zero to fill your rental calendar.

Sorry to hijack your post.  Hopefully my added comments will help potential owners in the post-purchase phase to be successful and buy more properties.  I know we plan to so I'll reach out to you @Jonathan Edmund when we get ready to buy again.