All Forum Posts by: Zeona McIntyre

This is probably the most asked question around STRs. You don't need the LLC but you may want it in the future as your net worth grows. Umbrella policy is fine. I've been an investor for 12 years, have 15 units, mostly STRs, and used to have them in our personal names until this year. We had an umbrella policy and never had an issue. Our net worth is 4mil so our CPA asked us to move them in LLCs last year. It was a pretty annoying process and I'm not sure if its actually worth it, but my husband is risk-averse so here we are. The only note is it is easier to set up the LLC before closing but not so hard to change after.

You HAVE to allow pets. Since Covid this is just the way of the world with STR/MTRs, it can require more cleaning and cause damage but if you want to complete it is a necessity.

@Marie Copul Hey Marie,
Sorry to hear you are in a position of hating your job. Like others have said, I not sure that I would recommend purchasing a bunch of rental properties. I think a mix might be a good option. If you don't want to swing from one headache to the next, I would recommend that whatever rentals you purchase, come with existing management in place that has already proven to accomplish excellent numbers. For example, I have two STR high-income earners (making 140k & 150k) in Joshua Tree for sale with low expenses, where the sellers will stay on to manage it.

Making sure you are keeping as much as possible from the tax man is a huge component and to do so you usually have to invest it. The STR loophole would work on the properties above, and then I could connect you to my CPA who has some great strategies like investing in Solar to keep more of your money. 

I would also invest in a handful of Syndications that are steady and boring as opposed to the flashy ones. I can connect you to a team investing in Distribution Warehouses in Atlanta that has been working well for us. Last, I would invest some capital in an investment with strong growth, so it could help replace the income you have at your job. My CPA also has an investment we got in with double digits returns that we rolled our IRAs into but you could probably put cash into if you would want to live off of it before retirement age.

I would never recommend someone stay in a job they hated just for the money. I am a big believer in time and space creating more opportunities to make money in different ways, through passion projects or something you really love. But you need time away from the job to heal and recalibrate.

Good luck, let me know how I can help!

Hey @Blake Winiecki I imagine you live in Florida but I would reconsider investing the area for one main reason - climate change. Whether or not you believe there will be drastic changes, we are already seeing increasing weather events with unusual patterns like the hurricane that whipped through Central (Inland) Florida in 2024. If you want to get a clue about places to avoid investing look at states where insurance premiums have jumped or where homes are uninsurable. 

Of course, live wherever you want, if you see that storms are becoming difficult, it is easier to sell one home and move. It is much more difficult to sell an entire portfolio that has become uninsurable (which would require a cash only sale) or that insurance rates are so high that no one wants to buy. 

When you invest, it is a good idea to have a 5-10 year hold horizon that you are planning for, not just looking at the immediate situation in an area. 

If you want to get into MTR or STR I have better markets to recommend. Let me know!

Hey @Lei Wei I'm from Maui and have been in STRs since 2012 but never bought in Hawaii because they are not friendly towards STRs. My vote is invest in other markets where the money makes sense and then take that profit to visit whenever you like. 

Of course, happy to connect you to local agents if you want to explore possibilities. 

 Markets depend on your strategy. If you are looking to do MTR, Portland is my favorite market. High demand and still relatively low entry costs. 

STR its a few markets in Kentucky. If you want more info or agents to connect with in those areas, let me know!

I wouldn't sell your condos solely based on HOA fees being $400/mo. For California that sounds quite reasonable, we are at that and more in Boulder, CO. The important things to consider about HOA fees is that they usually include some utilities: Water/Sewer, Trash, sometimes shared amenities like gym, clubhouse, pool, and they are saving you the time and headache for property maintenance: lawn care, tree timing, roof, siding, etc. A single-family home will be more than $400/mo guaranteed.

I am also in the "give it a try" camp. I wouldn't necessarily recommend that a family with 3 kiddos go out an buy an STR but since you already own it and have it furnished, its a pretty easy trial. The fact is that the real estate market is slow and likely will be until 2027 (Trump said he wants to keep rates where they are at through 2026). If rates go down in the future, we likely will have another run up in prices, so it might be worth it to Airbnb while waiting that out for a couple of years.

My only caution is STR managers are usually 20-25%, 15% may not be a great manager.

 100% worth it to post on Furnished Finder, but you need to make sure that you understand it is not a booking site. It takes a little more work with outreach but worth it! 

There are many other sites you can list on if you are going for Insurance Bookings but in my markets or at least for the inventory I have, it hasn't proven to bring many leads. 

I use 10% for maintenance & cap ex, 8% for vacancy (but not on STR because the estimate from Airdna includes vacancy), 10% for management. It sounds like you might be doing a little eraser math (making a deal work from not estimating enough for costs) so beware of that. The numbers I use for an STR and long term are different so I would probably analyze them separately and then put it all together. STR management is 20-25% (I would recommend self managing or getting a VA), since income is higher you could probably get away with 5% for maintenance / cap ex but remember you need to cover utilities and cleaning for these units which drives up costs. Not to mention the upfront cost of furnishing.

I have a few Airbnb properties for sale with creative financing in San Antonio, I'll shoot them your way just in case. 

Have you spoken to other investors in the area doing STR. From the little I know of San Antonio (I am a wholesaler who specializing in selling STRs nationwide) its not a super hot Airbnb market but the amount you expect for rent sounds pretty conservative.

I was able to become financially independent in 2 years with two properties. It can be done quickly but it depends on your willingness to get uncomfortable. The fastest way in my opinion is house hacking with Airbnb. I wouldn't build the ADU just yet because like it was mentioned it cost more than you can really make a good return on. I would rent out an extra room, basement and yep, deal with a part time roommate. Luckily Airbnb roommates are much better because they are gone a lot and you can take breaks / just rent in high seasons, etc. I would use the income to slowly improve the house and once you get it to a good spot, HELOC out some money for a down payment on another place rinse and repeat.

When you buy a property with the intention to Airbnb Househack, you can find a better layout to make it more separate / private but start with what you have, Get temporarily uncomfortable so that you have a comfortable future. Its got to be better than sitting at a job.