All Forum Posts by: Tyler Solomon

The markets that you mentioned come with a TON of buyer competition. It's really hard to get into a property that has returns worthy of the amount of work and expense that it is going to take to get a place up and going. When picking a market, find your unfair advantage. We all have one. Is it a place that you grew up vacationing, that you used to live near, some niche hobby that has a travel/tourism element (ice fishing, hiking National Parks that aren't the 6 that everyone knows, motorcycle rallies, etc.), or some other specific knowledge that would give you an unfair advantage over other investors?

Do not underestimate how difficult and expensive it is to get a property market ready. It's hard. And you're going to bleed cash for several months all the while crossing your fingers, stressed out, and hoping that it is going to work. It takes some serious guts and a good cash reserve. Coming into a STR project strapped for cash is a bad idea. The good news is that once you get on the other side, I have found that self management from a distance is not as hard or time consuming as I thought it would be. You can also buy a turn key, furnished place in a mature market, but you're going to pay up for it. That seller knows how much the property can make. It will be priced accordingly. Find the unsuspecting homeowner that doesn't know the true potential of his/her property.

Feel free to reach out with any specific questions. We got our first STR up and running last summer and just got under contract on our second. The biggest specific piece of advice that I would give is in regard to timing. To the extent that you can, make sure that you get a property up and listed as the busy season is starting. You'll become fully occupied - or close to it - in the first 30 days given the search results bump for new listings and will get a MUCH needed injection of cash right from the start.

I think they smooth down some.  FYI, I am a lender and there are 3 trains of thoughts that I typically hear bantered around: 

1)  We enter recession - Traditionally, rates fall in this scenario

2)  Inflation continues, Fed keeps on hiking rates and/or black swan event like Russian tactical nuke - Rates will rise again if things feel out of control and the fed raises the fed rates.

3)  We kind stay where we are economically - This should drop rates.  The traditional relative risk when comparing the 10 year treasury and 30 yr mortgage rate is 1.7%.  It hit almost 3% and is moving back down now.  That is key to the recent drop in rates.  If that continues, you should see additional compression in rates.   Chart on this rate spread below to help see the volatility.  

https://www.blackknightinc.com... 

It's as realistic as flipping a house, or buying multifamily or doing LTRs.

There are deals to be had but you have to keep looking. I agree that it is tough out there.

What kind of market are you interested in?