Mike Swenson, Mike Gengler, Justin Rademacher: Getting Started With Short-Term Rentals

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Short-Term Rentals on AirBnb and VRBO have been all the rage in recent years. You might be wondering if the market is too saturated or if it's too late to get started investing in your own short-term rental. What are the first steps you can take to get your own short-term rental? We discuss how to pick a market that is a great fit for you, how to pick specific areas within your market, what types of properties to focus on and what types of amenities to have in your short-term rental. We also talk about why a short-term rentals might be a better fit for you than a long term rental and why you might love being in the hospitality industry providing a great experience for your guests vs. working with tenants. This is a great opportunity to learn the basics about short-term rentals and decide if it's a good fit for you in your investment portfolio.

In this episode, hosted by Mike Swenson, we discussed:

• The biggest positive differences between Short-Term Rentals and other kinds of investments.
• Analyzing numbers and data to help offsetting your risks with Short-Term Rentals
• How our team helps others find short term rentals, and what you should look out for when exploring your own
• Using tools like Airdna (https://www.airdna.co/) to help analyze what markets you could explore for short term rentals
• The importance of looking into city and county regulations around short term rentals before you make a purchase
• Having an exit strategy for your property, should regulations prevent you from operating it as a short term rental in the future

Timestamps:

0:00 - Intro
1:41 - Why You Should Consider a STR?
6:12 - How To Identify The Right Property
10:35 - How To Analyze Numbers
16:15 - Choosing A Lender
21:21 - Having An Agent Help You Find The Right Property
25:35 - BRRRR Into STR
31:48 - How We Can Help You Build Wealth

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Full transcript here:

Mike Swenson 

Welcome to The REL Freedom Podcast where we inspire you to pursue your passion to gain time and financial freedom through opportunities in real estate. I'm your host, Mike Swenson. Let's get some real freedom together.

Mike Swenson 

Hello, everybody, and welcome to another episode of The REL Freedom Podcast where we talk about building wealth, and gaining time and financial freedom through real estate. And today, we've got a special episode because we've got the guys from my team, and we're gonna talk about getting started with short term rentals. So I know a lot of episodes, we interview people and just kind of highlight what's happening in people's lives, how they're executing through building wealth. And we know there's a lot of curiosity, a lot of people out there that are wondering, how do I get started? What do I need to do kind of what are the first steps, maybe those those seeds that are planted because you've seen other people post on Facebook or other people that you know, have gotten a short term rental in another location. And so we wanted to do a special topical episode here today just to get the ball rolling for you. So if it's moving from not really knowing what to do to Okay, here's kind of the next steps or if you're sitting on the sidelines, ready to jump in and get in the game. Hopefully, this can help push you over the edge there to get started.

Mike Swenson 

So today, we've got Mike Gengler, and Justin Rademacher. And these are the other agents on my team. And Justin in particularly works in the Southwest Florida market, where He specialises in working with people on finding good short term rentals. We've helped people buy their first short term rental and get them off and running and have some good stories just to share. So why should I consider a short term rental? So there's lots of different things that we can invest in lots of opportunities, that kind of the traditional long term rental is one of them? What would help me to think different about why would maybe want to consider a short term rental? Yeah,

Mike Gengler 

Absolutely. Short term rentals do offer a different side of the investment and one of the biggest positives about them as they they can offer a lot more cash flow upside. So for the amount of money that you're putting into a property, you can get more monthly cash flow each month, the trade off on that is the purchase price is a little bit lower. So your overall appreciation isn't going to be as much. But like you said, we're looking for the positives here. So that purchase price is lower than let's say, a 20 unit apartment building. So you need less capital to get started. And you've got the higher cash flow each month coming in, you still have the appreciation, especially in certain markets. But since the overall purchase price is lower, that number is lower overall. And then the other nice thing is there's a lot of different ways to run short term rental as well.

Mike Gengler 

So you can they call it pocket manage, so you can pocket manage it from your cell phone, there's a plethora of apps and websites and all of these things that can help you do that, you're going to need about five to six of those to really get the pocket management going pretty well. But it does everything from adjusting your prices, setting up your bookings, automatically alerting cleaning crews, the messaging is all going to be done through there. And so that way, you can just do everything from your pocket, and you're not paying someone to do your management. So you save on that fee, you can hire a professional manager, so you can be hands off, just pay the fee each month. And that's going to come out of the amount of bookings that you have the total amount, the total dollar value is generally how that's done. It's a percentage. And so, you know, just a couple of different ways to do that.

Justin Rademacher 

Yeah, you're 100% right, Mike, obviously, it's a cash flow upside. You're gonna cashflow a lot more per door, obviously, because you only have one door right, you're gonna cashflow a lot more. Now, there is a lot of talk out there right now about it being a little bit riskier, and it is a little bit riskier. What I would say to that, though, just to kind of address that, because that's a big topic right now, is it's going to be important to have a backup plan. Alright. So for example, I just helped an investor from Minnesota buy a short term rental down here in southwest Florida. And we had like three or four different exit strategies on on this property. So if it doesn't work out in the short term rental market, you have an exit strategy. And that's going to be really important and important, because that offsets your risk quite a bit.

Mike Swenson 

Yeah. And I was just going to add, just to give a little bit of a perspective, you know, when you're investing in long term properties, a lot of people you know, might have a guide of maybe 100 bucks a door, 200 bucks a door, something like that. If you have a good solid short term rental, it's not uncommon where you could make 1000 2000 5000 I mean, some people are making $10,000 a month or more. Now, the caveat to add to that is there is a lot of competition, you have to do it well and so you have to have kind of a high ceiling there to make sure that you're you're hitting those numbers and that there's I'm sure there's people out there that are struggling. Sometimes if you're not in the right market, you don't have the right price point, maybe not the right financing. But there is that higher upside. The other thing that I'll just add to is what's different about doing a short term rental is understanding. I'm in the hospitality business. I'm not necessarily in the landlord business. Now, yes, you will have tenants that reach out and have issues or complaints or things.

Mike Swenson 

So you're problem solving that depending on how you set up your management, but you really are in the hospitality industry, you want your property to set apart from the other ones that people are out there booking. So making sure that it looks sharp, you're creating a great experience, are keys of how people are maximising their revenue. And so you have to have a different mindset approach in that, yeah, As Justin mentioned, there's some different exit strategies, you can rent it out long term if you need to, there's some other options. But when you're going into this with a short term rental, you need to have a mindset of I'm in the hospitality industry versus I'm a landlord. So that was kind of one of the the main point here just talking about why short term rentals, we can move on to our second point here, which is really getting into the research phase, and helping you guys to decide what's going to be a great location. Yeah,

Justin Rademacher 

I mean, when I first got started out here, the biggest thing is gonna be figuring out where it's allowed and where it's not. And even if it isn't allowed, in what context, right, so there's a lot of restrictions. So for example, down here in southwest Florida, Naples, you have a lot of short term rentals that are technically allowed. However, they're only going to going to be allowed for 30 day minimum rentals. And so what that means is, you have to rent it out for 30 days at once. And so from a from an investment standpoint, that's more of a midterm rental than it would be a short term rental. But you know, that's, that's the restriction. So conversely, to that, where where I live down here in Cape Coral, Cape Coral just kind of has a stipulation for the entire city, that has to be a minimum of one week, which is very generic and pretty common. And then the other thing that you want to start taking a look at a seasonality. So I can speak specifically, obviously the Southwest Florida and southwest Florida, it's actually changing right now.

Justin Rademacher 

So season used to be kind of starting from October, November ish, it certainly was starting to pick up a little bit got really busy in December, January, that's still there, but it's actually going further and further into the summer now, right. So knowing where you're going to be able to maximise revenues, and watching the ebbs and flows, it's going to be really, really important to be able to project, you know, your income for that month, and for that year, and for the years to come. Just to

Mike Swenson 

add in. I mean, conversely, you know where we are in Minnesota, it's a much different seasonality than you see in Florida, because it gets really cold in the winter. And, and there are some locations where that's okay. There's a lot of people that maybe go ice fishing, snowmobiling. So going up north, and Minnesota still has some some tourist appeal, even in the winter. And yet you have to kind of dig down into the micro level and see what are going to be those locations? Or am I just going to make hay while the sun shines and have a cabin on the lake, you can still do well, if it's a cabin on a lake, because you can charge a tonne in the summer.

Mike Swenson 

And so that's where you have to understand is the location you're looking at kind of what is that seasonality. And if the numbers work, the numbers still work, you might just have to understand, hey, I've got a five month window here. But I can charge 1000 bucks a night if it's right on the lake, and I can make a bunch of money. And then in the wintertime, we lower the price and we still make enough money to pay for the utilities. And so that's an option or like Florida, you're going to have a little bit more year round traffic than you would in a place like Minnesota. So kind of understanding that seasonality can be to your advantage when making those projections. Because we what we don't want to have happen is you don't realise how it dips? If it does dip. And then you're you're stuck.

Justin Rademacher 

Yeah, I mean, I would say you hit you hit the nail on the head in terms of the tourist attractions, for sure. That's going to be important. So I mean, really every single area has its its benefits, right? So that's really important to take a look at. And then also, you know, when you're doing your research, there's a lot of companies out there, I personally really liked the air DNA website, that gives you a lot of basic information for free, you can calculate occupancy rates and things of that nature, you can get a good idea of the average nightly rate. So what I do is I actually go through probably three, four or five different websites, you know, I'll go to Airbnb VRBO. I'll go to air DNA, I'll go to a lot of these different websites. And I'll just kind of get a general consensus and that allows me to be able to come up with an average nightly rate. And what we found is it's very, very accurate doing it that way rather than just going to one source and combining them all together. But err DNA, honestly is probably one of my go to especially because they're very accurate with the occupancy rates.

Mike Swenson 

So Mike then thinking about next steps. So I've researched the area that I'm looking at I've looked at The policies that are in place what I can do what I can't do, I would also just add Google the city you're looking at. And you can even Google like the city and short term rental policies, just to get a head start as well. There's Facebook groups you can go in. So lots of place to do that research, I'm going to a place like err DNA, I'm doing my research, looking at occupancy rates, pricing, how that works. And so I think I've narrowed down this is maybe a general idea where I might want to get started with my, my short term rental. So what would be the next steps from there, if I've got the area located in terms of maybe finding a specific property,

Mike Gengler 

I think one of the very next things you need to do is get your numbers, right. And that comes down to using an accurate calculator. And what this does is it's going to take into account all of those factors that you and Justin just talked about, and condense them all down and figure out you know, what the, what your return on investment is going to be in a very in a variety of ways. I mean, I guess, I only know the calculator we work with, you can reach out to us, we'd be happy to provide that for you. But what this will do is it's going to give you a monthly cash flow, it's going to give you your cash on cash return, it'll get you your total return on investment, when you factor in paying off the mortgage when you factor in appreciation. And so what you're going to do with that calculator is you need to find all these numbers, which is what Justin was talking about when doing all that research. So what you're going to pay for the property, what the total income per month would be, which that's going to come down to a combination of the occupancy rate and what you can charge.

Mike Gengler 

So this is really important for short term rentals, rather than a long term rental, where you might just say, okay, the rent is going to be $1,600 a month, a short term rental is going to be much more fluid. In the summer, you might have a 90% occupancy rate at $300 a night versus in the winter, where you drop down to like a 60% occupancy and you can still only charge let's say $150 A night. But once you get all those numbers into the calculator, and you get that total overall cash flow, then you got to put in all your expenses, you're going to put in utilities that you've got to pay property taxes, insurance, maintenance, capex expenditures, are you going to pay a property manager, then you've got to put that expense in there. And you're going to take all that and the calculator, the formulas within there are going to spit out all of your numbers. And once you analyse the deals or work with someone who analyses deals, you you get a feel for what you're looking for. And you can say, all right, I'm only going to do deals that cash flow me over $1,000 a month, or only do deals that give me a 10% cash on cash return. And you figure out what that number is that you're looking for personally. And when you put all the numbers into the calculator, it's not a loop, I really liked that place, or, Oh, it's got a really cool pool, like, this isn't an investment, you're making a decision based on is this a good investment for you. And so if the numbers tell you that it's a good investment, then you can continue your due diligence and verify all those things.

Mike Gengler 

Like Justin said, you're gonna want to go to more than one website to get the rental rates for the place, you don't want to just look on Airbnb and be like, Oh, there's one place that's charging $400 A night, that's probably what it is, you know, go get some verification for that. And then, you know, when you come back and verify all of the information that you've gathered, now you can say, hey, this is going to be a good deal. And if you're an investor by yourself, you might want to reach out to an agent at this point, and start at and seeing what kind of information they have for you. Because it's always, you know, you can always use other people, you know, we're all in this business together. So Justin, if you're, if you're looking in the Southwest Florida area, like I'm not going to go do that research at the deeper level, because Justin's the expert down there. And so I would say Hey, Justin, I've looked at this property, here's what I think what do you think about it? So just get a second opinion on it?

Mike Swenson 

Yeah, and then some of the other things you're you're looking at, what are the numbers look like, versus the cost, but then you also want to understand some of the the nuances within that territory. So, you know, what are what are the must haves that somebody has for that property to maximise the revenue? How many bedrooms do you need to have? So you want to do some research and see, you know, at one bedroom, you know, if I'm just doing a condo or a small property, just to be able to get something out there that maybe I want to stay up myself when I'm coming down on vacation. You know, maybe I'm looking at a one bedroom, but then if I go to a single family home, do I need to have three bedrooms, or do I need to have four bedrooms? I know in Florida, you want to have you know, in southwest Florida, we're looking for at least three bedrooms plus a den, because if somebody's going to rent it out same Cape Coral for a week, it might be one family or potentially two families so you want to maximise the number have heads that you can put in the beds.

Mike Swenson 

And so otherwise, if you're looking at, you know, some of the tourist attraction places in the summer maybe where there's, you know, campgrounds, national parks, those are other popular spots for short term rentals. You know, do you want to have a nice big patio outside where people can gather and hang out. And so there's certain things that are going to be required to be able to maximise that revenue in those locations. So you got to dig a little bit deeper to then what rate is being charged, but what are the amenities that they have. And so that's really important to understand the amenities that I need to provide. And then as Mike had talked about, when you're running your calculator, you have to figure out what's that going to cost to furnish, to have the amenities that we need, or, you know, back to Southwest Florida as an example, we probably want to have a pool for somebody when they come down there, especially if it's inland. And it's not close to the ocean, or to the golf but but you need to know those things. And so I think that's where understanding, I've got my main location figured out the city I want to be in, but now it's what's the amenities and as you're running your numbers and putting them into the calculator, now you can start to see what those returns might be.

Mike Swenson 

So as we've kind of identified that property, we also have to have some other people on our team that are going to help us. And so you know, really, when when you're looking at investment, real estate, there's kind of three people three main areas on your team, it's a lender, right, they're going to be the one that's going to help you get the property, an agent, somebody helping source properties and kind of walking you through that process. And then a property manager or, you know, in this case with a short term rental, a co host, or something like that, obviously cleaning and handyman are really important as a part of that process. So we're gonna kind of walk down each of those three relationships. And what's really important starting off with lending, what do I need to know, when I'm working with a lender? What might be a good lender to choose to be able to help me to find that right property?

Justin Rademacher 

Yeah, so wonder single family homes, obviously, you can use just a traditional lender, what you're going to want to do is you do not want to interview numerous lenders, when you're when you're going through the process, because buying something for as an investment property is very, very different than homesteading that property, right. So, you know, we just bought our property down here in Cape Coral, but we're living in it. So we're homesteading it. There's different tax issues that arise with that when you're actually going to be using it as an investment property.

Justin Rademacher 

There's a lot of things on the lending side that can change. So what I would do is I would reach out to a lender that has experience working with these types of properties and ask them questions like that, you know, how is this different? You know, I live in Pennsylvania, and I want to buy a property in Phoenix, and I want to use it as a short term rental, well, I would connect with a lender. And you know, you didn't go on Google, you start there. But I would I would specifically interview probably three or four different lenders, and just ask them questions like, you know, how was the process different? Are there any tax advantages? Are there any tax penalties, things like that, your mortgage professional will know a lot of that stuff,

Mike Gengler 

I think this is a great time to point out that finding a good agent somewhere can help you with all of these connections. So if you that agent is kind of your go to person to find that lender to find that property manager to find the information that you need. And so that's where if you just want to find one person, you can do that. And then they'll help you find all the other people

Justin Rademacher 

100%. So an agent is obviously going to be one of your go to people. So specifically talking about lenders, that's that's what you're going to want to know when you're looking at an agent, it the process is very similar. What you want to do is you want to make sure that you're asking the right questions, make sure that they work with investors make sure that they have these connections with the right lender professionals, because they're not all the same. Just like every agent isn't the same. Not every lender is the same, neither, there's going to be a lot of questions that you need to ask you can also look for hard money lenders toggling back to the lenders, you don't have to go the traditional route to in order to buy something like this, right?

Justin Rademacher 

You can do hard money, loans and things like that. A good agent, you know, you bring up a good point, Mike, a good agent will have these connections for you. Generally, you know, I've talked about this and other platforms, finding that agent that has these connections is going to be your best bet.

Mike Swenson 

Yeah, there's a couple of I mean, the other reality is there's a couple loan products they can use. I mean, whether you're looking at a second home mortgage, you can get that with 10% down versus going with a more conventional mortgage where you're putting down 20% on a single family home. You can also see sometimes lenders can use a commercial loan product for investment properties commercial typically happens above five units. And yet even below five units, you can use a commercial loan for investment purposes. So reaching out to commercial lenders are important. And then Justin mentioned hard money. So there's a lot of options out there.

Mike Swenson 

So like Justin had mentioned, reaching out to a few different people to find out what It's available what's out there. Obviously rates differ from person to person loan product types, you've got your residential options, your commercial options. And so a good agent can point you to those right people. And yet at the same time, if you have a lender connection, just ask them to what what do you specialise in? And if you don't specialise in what I'm looking for, do you know of other people that can

Mike Gengler 

you talk about loan products, do the research on each deal as well, because the best lender for your first short term rental might not be the best lender for your second and third, third, short term rentals, the loan products that they offer can be highly specialised, which works out really well if you do the research each time to get the best mortgage. But make sure you do that every time because if you buy one, even if it just moves over maybe one zip code, you know, could be a couple blocks away. But if the zip code changes, all of a sudden, a different lender might have a better product that they can offer on that home,

Mike Swenson 

or even potential Portfolio loans looking at now that you have multiple properties, they could roll into some sort of portfolio loan. So yeah, there's lots of lots of options of what you can do in terms of an agent. You know, Mike, you had talked about finding a good agent really being kind of that key piece, they can help put deals in front of you, but talk about being selective and finding the right agent to help you find the right property. But walk through kind of that acquisition and how an agent can help you. Yeah,

Mike Gengler 

I mean, there's lots of benefits with working with an agent or a wholesaler, basically, you want an expert in the area, somebody who does this every day, and knows the market knows the nuances. And what that does is when regulations change, you know, knowing about the week long term versus the 30 day term, knowing which neighbourhoods you can do the short term rentals, you get all that information without having to do all the research, you don't know what you don't know. And a good agent or expert in the area is going to inform you of the things that you need to know that you don't even know that you don't know. And so finding that person, just like with your lenders, you're going to want to reach out to more than one person. And if somebody is providing you a whole bunch of information and following up consistently, like that's the type of person I want to work with, versus somebody who I'm just asking questions to when they're answering questions like that doesn't get me as far because again, I don't know which questions I need to ask all the time, I want to be provided with information, I want to be given opportunities, and they're gonna have deals available for you as well.

Mike Gengler 

So you might be looking at a deal like, Hey, I'm super interested in this. And then your agent or expert comes on and says, Well, yeah, that is a good deal. But here, I've got this other deal. And across the board, everything is 2% better. Well, if you can make every deal you do 2% better. That just seems like a big win in the long run. Now the deal might not be better, maybe you have a specific reason you want to do the deal that you brought to them. And they're gonna be willing to work with you in that case, as well. But at least you got all the information so that you could make an informed decision. Yeah, I mean,

Justin Rademacher 

you brought up a good point. Right. So you talked about asking, asking the right questions, I've actually created a questionnaire that I've sent out to numerous individuals from around the country, actually so far. And it actually has a list of questions that one, you're talking to a realtor for investment purposes, what questions should I be asking? I think it's like 10 questions that you should be asking these agents because you don't know what you don't know. So somebody wants that, feel free to reach out to any of us. But you know, it's not a Bible, if you will. It's just a it's a guide that can get you in the right direction. And then I'm sure more questions will spin off of those. But it actually dissects, like, why am I asking this question? What am I trying to get to? What's What's the outcome that I'm looking for, so it helps kind of navigate that for you.

Mike Swenson 

And then yeah, the third piece of the stool here that's really important, is a property manager or the boots on the ground person. So, you know, Mike had alluded to this earlier, you might be able to manage the property yourself, you might decide to do that. I mean, it's it's a decision based on Season of Life workload, you know, what you've got going on, whether it's something you want to take on, otherwise, there's there's other options out there where you can find somebody that's gonna co host it for you. And they take care of all that management and so it's the booking the pricing, knowing what to do there. And then it's handling the boots on the ground people so it's, it's a cleaner handyman. Those are some really important pieces, because you want to make sure remember going back to we're in the hospitality industry here. So a cleaner needs to be top notch, they need to have this place looking like a good hotel, in terms of cleanliness. And then too they want to be able to you want that person to be able to spot stuff as they're going through the property.

Mike Swenson 

You know, maybe it's you know, this this thing went missing maybe a potter pan or or maybe the couch got damaged. And so that's where they can be in good contact with you or whoever's property managing it to reach out to the handyman to make sure that that stuff gets fixed because if you have somebody come in the next They, just like a hotel, that stuff has to get fixed right away. And so it's that cleaner handyman or handy woman combo, that's really important. And that communication is helpful. So whether it's you managing those relationships or whether it's having somebody else manage that, that's going to be really important, because it all comes down to the reviews, right, the better reviews you get, the more likely that people are going to want to book with you. And if you start to get some bad reviews, now it can go go the other way. So that property management piece is really important. It's kind of the third leg of the stool. One other thing too, just to mention, in terms of strategy, there's a popular strategy out there called birbee, and B, or sometimes people call it burster, for short term rentals. So burr is a popular investment term, if you haven't heard of it before, where it's buy, renovate, rent, refinance, and repeat. And so what you're doing is you're adding value to the property. And so with that, there's some advantages in terms of being able to refinance that property.

Mike Swenson 

So if I'm choosing something that's turnkey, I have less of an opportunity to to do a refinance, and pull some of my money back out. If I buy something that needs some updating, and we have contractors come in and update the value of the property, now I can get an appraisal at a higher value and potentially pull some of that money back out and move on to something else. So that's kind of a combination of two really good steps, you've got birds that people are doing with long term investments mixed with the the Airbnb, the short term rental, and you can kind of have the best of both worlds. So I would recommend that where you go through and you identify a property, can you add value, now you still have to find the people that do the work, right, it's going to need a little bit more renovation. So some people might not be up for that. There are some financial upsides with that. So Justin, you actually just closed with a client who's utilising this strategy? Do you want to share a little bit more information about that? Yeah.

Justin Rademacher 

And I'll start by how do you identify these types of properties, right, because you know, when you're on the MLS, and this goes back to what Mike was saying, You need to find a niche, find an agent that knows what they're doing. Right. And specialises in this area, oh, start off and preface with that. But what you know, what I did is I found a property, you know, it had been on the market for a really, really long time. In my opinion, it was way below market value. And so I found that property, and, you know, sent it to this investor. And as we were talking through, I just kind of wanted to let her know, like, Hey, here's, here's the strategy with it, right? It needs some work, this individual is not afraid to jump into this type of work. This individual, you know, owns their own construction company. So they're familiar with that type of investment. We bought it at 395.

Justin Rademacher 

So she took out a hard money loan. So this is a great kind of circling back on everything that we talked about, right? She she actually used a hard money loan to close on this. And so what what they needed to do was figure out what the ARV is or the after repair value. So once it's all fixed up, what's this property going to be worth. And this property needed to be at a certain number. And this was when we did the our ARV and got it appraised. It was above the number that we needed, actually. So very fortunate. And that's where we were looking at this and said, Okay, this is a great deal. You bought it for 395, you're putting you know 60 70k into it. And now the ARV is very close to $200,000 over that, right. So the exit strategy, if you needed to is there. But what we're actually going to do with this property is she's going to rent it out as a short term rental.

Justin Rademacher 

So that's the bird b&b strategy, or the burst or strategy there, where she's buying it, she's rehabbing it, she's gonna rent it out, she will refinance eventually, and she'll be able to pull her money out, you know, all of the deposit money and all that kind of stuff that she had initially put down, she'll be able to pull that money back out. And so essentially, I don't want to say it's like having a free property, but it's kind of like having a free property if you do it, right. So that strategy can be very, very advantageous and actually be more lucrative than buying something turnkey, if you do it. Right. When you

Mike Gengler 

say free property, what is that stating that she's got no money left in the property that she invested anymore?

Justin Rademacher 

Yeah, essentially, her the money that she put down? Yes. Awesome. Yeah, the money that she put down, she'll have all of that, and then some sharks should make money on that, you know, Will there still be a loan on it? Yeah, more than likely, right. So she'll still have that or the hard money loan or whatever. However, her deposit her initial deposit, and then some she'll be able to get back when she refinances or, let's say that there's restrictions that come up and was that area, you know, I don't see that happening, but we don't know, right? Certain things happen. She could turn around and sell a property rather than refinance it, she could turn around and sell it, and what that ARV number that she has, she'll be able to pocket a good chunk of change that way as well. So multiple different options when you when you evoke the bur strategy.

Mike Gengler 

And I think it's good to recognise, this can be, you know, short term rentals can be part of your portfolio for investing. It's a great way to combo with long term rentals, because you do get that bigger cashflow amount per month per door, with a little bit lower purchase price. But it's, it's not the only thing you can, you can certainly have a portfolio of only short term rentals. But I think long term if you're looking to build that long term wealth, we here as a team, and you know, a lot of our clients are using this as one portion of their portfolio, you know, have some short term rentals have some long term rentals have some midterm rentals, and you'll have a portfolio that really performs for you in the long run. Yeah, and

Mike Swenson 

so we mentioned a few things today, you know, we've we've got a calculator that folks can use, we've got a questionnaire for interviewing agents. And also too, if you just want to get started investing yourselves and you really don't know where to start, we'd be more than happy to reach out to start that conversation and help point you in the right direction and really identify a path for you and a timeline for you. Because if we don't have a timeline, it's less likely to happen. It's always kind of on that wish list of Oh, I'd really like to get a short term rental and the next year comes in the next year comes and you don't do anything.

Mike Swenson 

So we can help hold you accountable to a path for that. But the next best step for that is we do have an investor questionnaire form just a short, three minute thing that you can fill out on our website, and you can go to invest with elite.com That's invest with elite.com. Just put in your information. And then that's kind of the trigger for us where we can have a conversation and get going on it. Well yeah, we'd love to be able to help you guys build your wealth. Short term rentals are a great way to do that.

Mike Swenson 

And that's why we wanted to share with you this episode just to help get the ball rolling and move to that next step that's going to ultimately get you your your next properties is awesome. Thanks, Mike. Thanks Justin so much for coming on. Feel free to reach out to us and let us know what we can do to get you to building financial freedom through some short term rentals.