All Forum Posts by: William Duenskie

I was curious what others choose to set their "advance notice" settings within the Airbnb calendar. It defaults to same day, but I could see how this could cause some issues. I'm wondering if its safer to set to "At least one day".

Any thoughts or opinions would be most welcome.

Bill

0 Votes

Quote from @Michael Smythe:

@William Duenskie recommend you reach out to several investors here on BP to set up a chat and discuss how much time they have to spend monthly on their portfolios - it's usually MORE than novice investors think.

Also, you definitely want to consider the property Class to invest in.

In our OPINION (always verify yourself!):

Class A Properties:
Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.
Vacancy Est: Historically 10%, 5% the more recent norm.
Tenants: Majority will have FICO scores of 680+.

Class B Properties:
Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.
Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.
Tenants: Majority will have FICO scores of 620+, some blemishes, but should have no evictions in last 5 years

Class C Properties:
Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation. Can try to reposition to Class B, but neighborhood may impede these efforts.
Vacancy Est: Historically 10%, but 15-20% should often be used to also cover nonpayment & evictions.
Tenants: majority will have FICO scores of 560-600, many blemishes, but should have no evictions in last 2 years. Verifying previous 2-years of rental history very important!

Class D Properties:
Cashflow vs Appreciation: Typically, all cashflow with zero or negative relative rent & value appreciation
Vacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.
Tenants: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Make sure you understand the Class of properties you are looking at and the corresponding results to expect.

Hi @Michael Smythe,

Thank you for your response. I definitely want the A or B category (leaning more towards A). I fully understand that in this market between the rising prices and interest rates that it will take a few years to cashflow on A/B properties. I'm in this for more of the long term equity gains, with the hopes of rental price increases that can help me cashflow in 2-3 years from now.

Are there any particular investors you'd recommend I try to speak with, and who would be willing to speak with a nobody like me? ;)

Regards,

Bill

0 Votes

San Antonio, Texas

Hi All,

I’m looking for guidance on the investment approach I want to take. I’d love for you to poke holes in my logic or tell me if you feel I’m making a mistake (any feedback is welcomed).A bit of quick background on myself and the situation I’m in, which I feel will provide context behind what I’m looking to achieve.

Current situation

* I’m 43, married, and have two great kids (4 and 6), my wife works, but my W2 earnings are counted upon

* I’m not looking to replace my W2 job, but instead strategically invest money from my high-yield savings (4.25%)

* I have two healthy 401Ks, a good amount in the stock market, but I don’t want to continue pouring my saved cash into the stock market, I’d like to diversify more

* I own my home, about 14 years left on a mortgage with a good amount of equity (which I don’t want to touch for now)

* I have about $250,000 that I’d like to start to put into buying real estate

Goals/availability/knowing thyself

* I’d like to retire in 15 years, so my play is more toward equity, any amount of positive cash flow is icing on the cake. In this market I can't have my cake and eat it too

* Given my situation (being a provider), my amount of free time after W2 job, and kids/being a husband, I can devote about 10-15 hours per week

* I want to be a passive investor, I do not have the time to self-manage or do anything beyond cosmetic rehab, but ideally mostly ready to rent properties

* I’m located just north of Tampa, FL. While I understand the market is hot here, I’d like to diversify my investments out of state to hedge on the FL insurance issues and from natural disasters (I don’t want my eggs in one state basket)

Strategy

Given what I explained above, and through additional research I’ve been doing. I’m thinking of targeting:

* San Antonio, TX as my first investment area

* A LTR single-family house (minimal to no rehab), I've done the STR once and it did not go well (primarily due to my ignorance)

* I like the idea of jumping in at a lower price point of entry to get my feet wet again

* If all goes well, then I’d like to accelerate and look to acquire more properties

* Putting together my team (realtor, property manager, etc.). I will not self-manage

That’s my story, folks, and what I’m thinking of doing. My apologies for a long-winded post, but hopefully the background information helps. I look forward to any and all feedback!

Bill

2 Votes

San Antonio, Texas

All Forum Posts by: William Duenskie

William Duenskie has started 2 posts and replied 3 times.

Post: Airbnb advance notice under calendar availability

Post: Does my logic and situation make sense for my strategy?

Post: Does my logic and situation make sense for my strategy?