In the short-term rental riches will discuss investing in real estate with a specific focus on short term rentals quick actionable items to wire. Scale your portfolio I’m your host Tim Hubbard.

Welcome back to the short-term rental riches podcast it’s good to ask questions for things that we are unsure about it helps us continue down our path that helps us continue to move towards our goals and in the case of real state helps us make better decisions and makes us more comfortable with the whole process so we got lots of questions thank you for sending a man and helps us tailor our content to keep sending them in if you haven’t yet we do have a website with all of our past episodes and a lot of resources S. T. R. riches.com and you can post questions on there let’s just go ahead and jump in to a couple here here’s one from Jake in Pennsylvania and he was actually a 10 year one of our last live events 7 info you provided at your 2 day event you have a nice list of markets to keep an eye on I’m curious if this list was compiled based on your own research Iridian any maybe a combination of things thanks to him so yes I do provide a list at our live events and also in my S. your playbook and that is based off some of my research but the majority of that is based off research of other companies providing investment properties across the U. S. so to let you in on my little secret what I do is follow turn key rental providers that do a lot of research on different markets and majority of these providers for those either don’t know turn key rental provider someone that buys a property they renovated they usually put the tenant in there and manage it and sell it back to investor now these investors wouldn’t be able to buy those properties cash flowing if these properties didn’t happen to be an area where the price and rental values made sense so these are. Good markets to start out in mainly because they have good population growth they have good employment and diverse employment there typically landlord friendly and a really big 1 especially now with crazy prices all over the place is low cost of living so a lot of these markets these turnkey providers recommend happen to be in these areas and that’s what my list is that I’ve compiled so you can fall some of those turnkey providers as well just go on Google and search for some big ones and you’ll start to see that a lot of these markets pop up course as a short term rental investors we gotta take it 1 more step and that’s to make sure that any of these markets any of these neighborhoods I should say that we’re looking for properties and allow for short term rentals so and that is a big big very important second step so good question there Jake this question is from Michael I’ve been following your podcast and listen to most all of the episodes thank you Michael glad you’re enjoying my wife and I have been in real estate investing together since 8 starting with conventional 1 year lease rentals we bought a multi family property in 2017 that is the main house 3 to an apartment 11 on the property my wife had the idea and plans to make an error B. B.’s remodeled and set it up and by golly it booked up the little 400 square foot apartment consistently outperforms the 3 bedroom 2 bath home that is also remodeled and nice fast forward to now we have 3 other error being bees and make a gross 6 figure income from them that is awesome and this is very common it doesn’t take a whole bunch of these properties to make some serious income so back to Michael’s point they’re 1 of the points he made is that that small little studio rented as a short term rental is way out performing their long terminal this is also very common course you got to make sure we’re in the right market so let me get to this question. Is there a way to leverage this successful business for more properties with a lender so by successful properties I’m assuming he means to leverage the increased income he’s making from the error being bees to qualify with lenders to buy in other markets and I would say absolutely the longer you’re making that income from short term rentals the easier it’s going to be to prove to lenders that you do have a successful business going but I’ve done lots and lots of loans and refinances based off my short term rents so absolutely Michael talk to as many lenders as you can you can talk to some some some short term rental specific lenders like one that I just use called vizio they were tough to work with but they got the job done there’s a mother’s call host financial and any nationwide lenders going to be a good option for you these days just make sure up front did you tell him that you have short term rentals and the more you are able to claim that income and prove that income from short term rentals the easier it’s going to be for you to get loans and other markets and then yep definitely can keep on expanding. Hey Hey just want to ask you guys real quick favor if you haven’t already left this review if you wouldn’t mind heading over to iTunes or Spotify wherever you’re listening to the podcast and just leave us a quick review we really really appreciate it and if you know someone that you think would find value in any of the episodes that you’ve listened to you could just take a screen shot send it over to that’ll help them but it’s also going to help us grow a little bit too and lastly we’re on YouTube so if you prefer you to you can head over to short term rental riches and you can find us there as well thanks for listening in and thanks for all your great. Let’s jump back in. This question is from a good friend of mine that just closed on a 4 plex so congrats to Jameson excited for you man she had a question about converting the long term tenants in the short term there were long term tenants in there and he was asking how to go about that so my short answer is that if you acquire property that RT has long term tenants and you have the intention of switching it to short term rentals well first if it’s already professionally managed by a property manager I would let them know I would let them continue managing the tenants and just let them know that you would like to not renew those leases and they can let the tenants know and deal with it themselves the management companies very likely not going to be opposed to continue working with you because they already have everything set up so they’re still making that monthly income now if there’s not a professional property manager in place well then you just have to simply handle that yourself make sure you have a lease all the copies of the leases when you buy the property that should be one of your pieces of due diligence anyways and just write a nice letter saying Hey you know you don’t have to give them all the details but I have plans to change the property around or if you are going to be renovating them first well sometimes you can let them know and if it’s in a multi you know place it’s not nice to be living next to renovations so someone may want to leave their lease early which you can let them do penalty free you might even go as far as giving them cash for keys which is something that I’ve done before if if it’s really gonna be helpful for you to have everyone out the same time you might want to give someone a month’s rent in advance or some additional money to help them move with Lou last notice so make sure you check your state regulations different states have different regulations on how quickly can end of lease depending on. How long at 10 it’s been in your property to so good question there. This message actually came from Instagram and I’ve got to say I’m not super on top of all of our social media but 1 of my virtual receptionists that helps me with all that is so we do get all those questions so check us out there if you haven’t already and rest methods on Instagram with posts lots of great tips a lot of them are a little bite size chunks that come out of these podcasts so check us out there find us follow us all that fun stuff and here is a question I was looking for your advice I’m active duty Air Force thank you for your service and I’m ready to get into the short term rentals I’m currently raining and I’ll get out of this lease in July my plan is to buy a small single family home for now and then use that to begin my S. your journey I’ll buy another house using my VA loan in 6/20/22 well my lease is up I’ve done research and I can’t seem to find a lender that is willing to give a reason alone for investment properties I find that people are wanting 20 percent down for conventional loans or like 5 percent down on a 15 year mortgage so in general your probably going to be required to put down anywhere from 3.5 percent to 20 percent now if you have a veterans loan you can probably put down less than that but it’s got to be on your primary residence so primary residence loans are where we can put down the least the money now remember you can buy up to a 4 unit building for your primary residence you can live in 1 unit you can use that same great financing so that is a really good option fact that’s the first investment property that I ever bought years and years ago so check that out as an option there’s also an option to buy a secondary residents with 10 percent down now there’s some limitations on that you do from what I understand I have to spend part of the year in that property and it can’t be in the same area as your primary. A resident so check with lenders on that but that could be another option but in general investment loans are usually 20 percent down now that doesn’t mean you can’t partner with your friend doesn’t mean you can’t partner with family or whoever it is so if you do have someone else that’s interested I highly recommend reaching out to him and see if you can work up something together so he also says would you recommend sprout mortgage or house Max. That provide investments with specific loans I’m not familiar with those 2 letters but I can’t tell you there are hundreds and hundreds and thousands of lenders in the U. S. you just got to do your research check with your local market lenders first they can be a really good options but then there’s a tiny nation wide ones as well we do have quite a few of those we’ve got a few those are recommended resources at rest method starcom. This question is from Vishal in California said hi tam I hope all’s well I’m interested in your 4 week challenge since I just have one short term set up I would prefer to have a BA Hanley messaging and quickbooks bookkeeping do you think I’ll have success in finding out from a VA so Vishal’s referring to I have a 4 week replace yourself challenge it’s call that you can find our website rest methods are calm and that’s all about from start to finish how to hire your own VA to replace yourself from your short terminal business in terms of everything that you can do virtually messaging all of that and yes you could go as far as having them doing your bookkeeping. But I would say when we’re looking for a virtual receptionist we want to have one main goal first want to start with that we want to get that dialed in and we can branch out from there it’s not realistic to find a a Jack of all trades someone that’s an expert in quickbooks accounting and an expert in customer service and guest reception so I would start with your main goal first but I would say with appropriate training and the right communication you can really really have a ton of success with your virtual assistants helping you with all sorts of things you name it my virtual assistants help me with everything from this podcast to our guest reception and everything in between so good question visual. This last question comes from Ryan and this is a little bit more of a fun question and I get this one all of the time not really related to short term rentals but I just want to share it anyways a lot of you know I’ve been living in Columbia for years now and these questions related to that what is it like to live in Columbia well that could be a really long answer but I’ll tell you the main reasons I came down here they call it the city of eternal spring so it’s basically like 70 to 74 degrees all year long it doesn’t really fluctuate that much and it feels like spring we get a lot of rain but not crazy Central America rain where you can’t go out for a week at a time we get a little afternoon evening rains and occasionally we get a couple days a little more piled up but the weather is fantastic the cost of living is very very low compared to the US and the quality of life at sea is super high the people are super friendly Colombians are super friendly in general but I would say after being here for a few years one of my favorite things is the network that I built with my friends here from around the world there’s tons of entrepreneurs here that up all different types of businesses that have come here because they also enjoy living here second part to this question what’s the cost of rent free class B. apartments and many well that’s interesting I would say it’s probably a lot higher than what you would expect and this comes down to supply and demand there’s a lot of demand coming into medigene right now people love it here they come and they want to come back but there’s not as many short term rentals because of regulations and we talk about this a lot on this channel but most buildings do not allow for short term rentals which means the supplies a little lower says Columbia shows up on a list where you can live for $1500 a month but I’m a. Little suspect of what to expect for 6 to $800 USD. I would say $1500 a month yeah you could find a lot of options for less than $1000 a month to live and you can get by with another $500 a month for food and all those expenses I would say to live more comfortably down here I want to have at least $2000 and and spendable money each month and then you know if you get in the 345 and up from there you can literally live like a king. It’s it’s good it’s pretty crazy really but you can live very comfortably ad and at a lower base or 1500 to $2000 I would say of course I found this place after traveling around the world a lot visited over 70 countries and I’ve I’ve lived a lot of different cities so I love it down here short term rentals have given me the freedom to be able to live down here course we have lots of system set up so the to manage all the properties passively but short term rentals can be so powerful they can be such a great piece your portfolio they can allow you to live wherever you want so I hope you guys continue to ask good questions and continue to tune in don’t be shy no question is a stupid question so I hope be a little more insight here and until next time. There’s so much money to be made the short term rentals but it all starts by having the right property if you guys haven’t yet seen my free ebook on our website rest methods.com head over there and get a copy it’s going to break down what I look for in a property in some great short cuts so that you don’t have to spend hours and hours researching at over rest methods.com and you can grab your free copy there if you want a crash course in everything I’ve really learned to short term rentals in over 5 years managing over 15000 Gasol recorded on our last live event and I’m happy to say we broke it down really nicely into a bunch of different modules that you can watch at your own pace it takes you from start to finish from finding a property we talk about analyzing the property but then also some of the more important pieces how to find your team and how to set up everything so that you can run your operation is passively as possible and free up your time you can find that it rests methods.com forward slash virtual.
 
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