Short-Term Rentals have been a top topic of conversation in the real estate investment world for quite some time. Are they a good investment? Is the market becoming too saturated? How to you handle increasing regulations? In a recent REL Freedom episode, Tyler Coon got to share his insights into the world of short-term rentals. As an agent in North Carolina running Savvy STR Agents, this is his niche. He offers valuable advice on how to succeed in this thriving market. If you're considering investing in short-term rentals or simply interested in learning more about this lucrative real estate niche, here are some key takeaways and things to consider:
1. Expertise is Key: Tyler emphasizes the importance of working with a market expert to help you identify deals that will give you the best chance for success. Each market is different, and each opportunity within a given market is different. Specializing in short-term rentals, like any other real estate niche, requires...
Why should I consider investing in real estate? It can seems overwhelming and confusing, which leads many people to not consider the huge benefits it can have over other investment opportunities.
With stocks, they go up or down and you may receive some dividends. Investing in precious metals? You either sell high or low. Real estate? There are many different levers you can pull to grow your wealth. All of them can work in your favor. Some are bigger and some are smaller. However, added up, they have a much more compound effect that can make a significant difference in the returns you're going to get on this asset. So what are the top reasons?
1) Rental Income: Each month, your tenants or guests are going to pay you money to stay in your property. Ideally that income coming in is much more than what you need to cover your expenses each month (if you're buying correctly with an emphasis on cash-flowing properties).
2) Mortgage Pay Down: One of your expenses each...
For many of you, investing in your 401k or IRA seems like a solid option to help you grow money all the way up until retirement. You put money aside each paycheck, don't touch it until you retire, and hope you have enough to last through your retirement years.
Did you know that you can use the money you've already set aside in a 401k or IRA account to invest in real estate?
But Mike, why would I want to do that?
There are a few reasons why some are interested in doing so:
Oftentimes when people think about real estate investing, they are immediately concerned because they think that it means they'll have to respond to tenants phone calls at 2am staying that their toilet isn't working or they no longer have heat in their home, and you have to instantly drop everything and go help them out.
That's what I thought about too, until I got into it and realized that, depending on your personal preferences, there are many different layers that can insulate you from feeling like you're taking on a 2nd job managing the property or building your portfolio.
So it's helpful for you to ask the question "how active do I want to be in managing my real estate investments?" Some people like getting their hands into things and being involved in the day to day operations and the decision making. Some don't. The good news is you get to choose, and there are opportunities out there that fit the entire spectrum! Plus, it's not just in the management of the property, but...
How do you know if you have a good investment deal? Knowing your numbers is a great place to start! Don't let uncertainty of not knowing how to analyze a real estate investment deal keep you from getting started on your investment journey.
When I work with clients, I often tell them, "I'm incentivized to do a good job for you to pick a great property, because if you're going to make money on this property, it's going to help you to buy more." However, analysis paralysis is real, so we have to find a way to quickly and efficiently look at a deal and decide if it's worth spending more time, or moving onto the next deal.
Too many times investors are sitting back and waiting for the "homerun" deal. The deal of a lifetime. Yet if you're looking to build a portfolio of many properties, you need to have some singles, doubles, and triples in your portfolio too! Waiting to only move on that homerun is going to set you back from getting started, learning...