All Forum Posts by: Timothy Church

@Brendan Flannery

@Mark Brown

@Rebekah Valdez

@Irina Ruggeri

Just tagging the people from the last event so they'll see this one!

The Galveston long term rental market is typically rather strong. With UTMB, we get a solid stream of students coming in which really helps. 

Now this year has been rather different with COVID. Another large portion of our renter base are those who work in the service industry. Places like Moody Gardens, Schlitterbaun, other attractions,, and all the restaurants have workers that are typically in the rental pool. With things this year, there aren't as many employed there which obviously hurts the rental markets.

With the strong tourism here, once things get closer to being normal in the world, the rentals will bounce back. 

I recommend looking at 5+ multifamily properties. With the cost of insurance here in Galveston, these typically work the best for keeping the numbers work. Best of luck! Let us know if you do any fun deals!

It is time for round two! The last meetup went great and it was wonderful sitting down with everyone. Hope to see everyone again and hopefully some new faces.

**To get to the back patio go into the bar and through the back exit to the right. There is a great courtyard area there to relax!**

This meetup will be just a casual meet up of like-minded people to discuss real estate, investing, strategies, and anything the conversation leads to. It is a come and go event so please don't feel that you have to be there exactly at 6 or stay till the end if you have other things to do. This is at a bar so there are drinks that can be purchased and they allow you to bring in food if you'd like to bring something or buy something from Gypsy Joynt next door. DTO is a craft cocktail bar that has some great drinks. If everyone seems to like it there, we can keep it as the location or discuss other spots.

Please note: This is not a place to sell services or properties. You are more than welcome to share what you do or property you are selling and people can inquire but please don't try to keep driving conversation into a sales pitch. I want to keep this as a discussion where people can ask questions and learn from each other.

I hope to see y'all there. If you have any questions, feel free to reach out!

Location: DTO - 2701 Market St, Galveston, Tx 77550

Time: January 16th - 6:00 to 8-9ish

@Emily Jones Non-warrantable typically means that they are condos that Fannie Mae will not purchase the loan and so they can't sell well on the secondary market. Every bank can have its own definition of what is non-warrantable but most follow the Fannie Mae guidelines. Typically reasons that a complex would be deemed non-warrantable is if over 50% of the units are used as rentals instead of being owner-occupied, if it is run like a hotel with on-site rental management, or if it doesn't keep the minimum amount of HOA fees in reserve.

Properties with these issues are a bit harder to get financing as you typically have to find a lender who holds their loans in house versus reselling them. If you don't know if a complex meets the standards, just ask the HOA. They will know!

@Emily Jones & @Lucia Rushton

While you definitely have to take into account closing costs, you are able to purchase a vacation rental as a second home loan at 10%. Now at that price point (at least in Galveston), you'd be looking at a condo complex that is non-warrantable aka a condotel. I do have a lender that is able to do 15% down on non-warrantable condos but that is the lowest you'd be able to get the downpayment. As Emily mentioned, always remember to include closing costs. That way you are able to look at properties at the appropriate price point.

Best of luck!

@Jack Holmes

Good morning!

I'd be happy to answer any questions you have on here and go a bit more in-depth in person if need be! The island is a great location for vacation rentals. Even with the increasing numbers of rentals over the years, the performance has stayed solid for those who run their properties right.

There are many realtors and property management companies on the island. The most important thing is making sure whoever you use is able to give you appropriate advice and information when finding a vacation rental. While I manage properties here on the island, I typically recommend self-management for my clients that only have a property or two. If you set things up properly you are able to automate a good amount of the work and primarily deal with guest interaction. 

I personally use AirDNA for my research metrics. I compare the numbers to the properties I manage as well as investors I have worked with that manage their own properties and have found they hit very close to the true numbers! I'm happy to run a report for you if you have a specific property in mind. I'm actually about to add a built-in calculator to my website so people can run some basic reports themselves.

If you are looking at that price point you will need to focus on the condo complexes along the seawall. There a several different complexes that allow for vacation rental and can cashflow well. I actually just started working with a new lender who can offer 85% LTV on non-warrantable condos which helps to improve cash-on-cash performance!

If you have any other questions, please feel free to ask on here so everyone can have the information. If you'd like to talk more in person, please feel free to call or email. Have a great day!

I'll be setting one up for January here soon! We all really enjoyed the last one!

Good afternoon!
I have a few personal investment STRs on the island as well as manage for other investors. I'd be happy to help with any questions you have or sit down for a coffee if you prefer!

Everything is still on for those who want to join. The weather looks great so ill be out back on their patio. I'll wear a Santa hat to make us easier to find. Look forward to talking with everyone!

@Mark Brown

Yes sir! We might move inside depending on the weather but we will be there.