How Many Rental Properties Do You Need to Quit Your Job? (Rookie Reply)
41:02 Share

Let's get your questions. Answer what's up, guys. I'm tony jay Robinson, and today, i'm excited to be joined by garrett Brown for the short term tal focused rooky reply.

If that name sounds familiar, because gear recently joined the B P T as a full time content creators, you're likely seeing him across all of the different, bigger potest channels. Now today, we're diving into the bigger points forms to get your questions answered. No, guys, the forms are the best place to go for you to quickly get all of your release.

Investing questions answered by experts like me, geared ashly care and all the folks in the bigger box. Now what's get into the show? So today's first question says I started getting into cabinet in the smokeys about five years ago.

I am now happy to say that I own n six cabinet, four in the smokeys to in blue ridge and manage another cabin, blue ridge. All of this is being done remotely. Now we're working on building our seventh, which will be a one bedroom tree house in the smokies.

The income has really changed my family's life and given us a security blanket that A W to never could. I just wonder how far could I actually take IT? We have one long term rental.

So i'm wondering if I should start focusing on more long term rental to baLance things out. I'm also considering switching from WTO to going out on my own. I do currently I do taxes and accounting in the next few years is very metric or rule of them.

Someone has that is good when it's time to make these kinds of moves. So a lots of impact you're girt. And and first, I just want to say to the person that asus question, congratulations.

Know six cabins plus wager your managing plus one of your building to do that in five years, as is remarkable. But there a couple questions to your girl that I think we should kind of pull apart here. Um the first question is, should this person diversify out of short term tals into long tremendous to couldn't quote baLance things out. So what do you thought in that first view?

I'm always a fan of of diversifying portfolio. I have a couple long term runners in myself, and there's I think a lot of that will come down to what like what there goes are if are looking for different areas that they're trying to get into some long terminal areas might do Better with appreciation if you get into a particular market. And a lot of that's going to come down to what their goals are for their own portfolio.

IT seems like if they have that much momentum, the short term rino space that they already have a lot of systems and Operations in place, that scaling that a little more might not be as hard as as as other people trying to go for maybe you know zero to one or no one to two property. So I personally as as a service moral advocate, I would lean into since you vi established, a lot of these system is Operation. And in a certain, I would lean in more into that and even really maximized since you ve already have so much in place.

But either is nothing wrong with having diversification, especially if you're looking at the long term runs into a market that is probable appreciate much more than some of these vacation rental markets. So you can get a mix of a cash flow mix, mix with appreciation. That would be my personal thought on IT. But a lot of IT is their long term goals in the end.

Yeah, you need to know the headgear. I think I agree with you completely that this person's goals are probably the deciding factor and really being able to navigate which decision makes them most sense. There's obviously a benefit and um being in in different asset classes long term is a short term. But I I think there are other ways also like balancing things out within the same asset class.

You've already built a foundation and so maybe instead of your eighth cabin also being in need of the smokies of the blue or blue ridge, maybe go to a different market, right? And and maybe that's how you start to diversify as that your you're spreading your important future out across different locations because I think there are different ways to diversify IDE from just going into different strategies. Now the other part of this question is that this person is considering switching from their youtube to kind of going out to doing this full time. Um what what are your thoughts skirt on and kind of timing out that that transition?

Um so I mean, he said he does tax and accounting, I think right. I think I think he would be able to probably be able to answer that even Better if if the benefits of having the w two are helping in the tax area, which no short term inal, that's one of the they call IT, the short term inal tax loo, even though it's early a loops is the IOS code. He would probably to answer that portion Better for him if that makes sense and attacks tax way.

But if you're ready to take that leap and you feel like IT goes back to your goals, I think nobody there's never gonna a one size fit all because you know, somebody like me, I like working my w two while also having my shorts rino portfolio. And are the things like that because I like my job? You know some people, if if you're looking for something different and you're looking to really escape what you've been doing Normally, I think there's that's always a good step to take if somebody he's really trying to experience. But he he's the tax guide. So I I would let him make that decision of the cost benefits .

there if IT helps. yeah. I mean, the tax implications is one piece, but I think just generally speaking, if you are going to make that leap, I felt you got to make sure that you've got enough run away to give you the confidence to do that.

So when I transition from w two employee to full time release investor IT wasn't by choice, but like I lost my job. And we had been fortunate ough that we had saved up a good chunk of cash to even if we didn't do anything for like a year, may be even more, we would have been fine. So we say, hey, let let's give ourselves a year and see how far we can take this thing.

And if you're happy with all the of that year, OK cool that I don't go back. But if you're not happy, OK cool, got to go to authorization and figure something out. And you know, know during that, that time for we are able to scale the business prety pretty quickly.

So I think given yourself that runway to say, hey, even if this goes to to zero over the next twelve months, can I still survive? Can I so keep the lights on because your your worst case scenario, you do take that leap, is that you just go back and get another job, you know, and then you're living the life that you are already living. That's the worst case in in the best case in is that you give yourself that time, you really kind of get the fly will in motion and you've kind of unlocked this new version of life.

But I think making sure you've got enough reserves to to last whatever time for him you feel makes the most sense. That kind of the parameter that I would set in place first. And the second piece is just understanding how much cash al is actually coming off, right?

Like if you if you need ten K A month to sustain your lifestyle, maybe look for fifteen k per month and profits from your real, say, business, right? Because you're just just in case you want to have some make cushion there. But I I don't know if I leave at eight k when I got to get to ten k say i'll just make .

up the two k difference the runway .

put IT yeah there is no IT can be a scarily bright. But I think you put a lot of hard work, you know to get to seven properties in five years. So something in a lot of people don't do and and I think you ve almost earn that where at least have have that conversation with yourself um a congratulates tions again. So I think you do a phenomenal job here.

That's amazing, definitely. You know like now you can even take a scale IT further with you know co hosting other things like that too. So there's there's ways as you might be able to really rapidly scale and you don't even necessarily have to put the extra capital down. If you don't have IT you know coming in from your w tube, you could scale and show your proof of concept that you've already had in the area .

that working well in a that's a great point. We actually interview to live a ati on the rookie podcast is IT a listings? Go back and look free of his episode. But he was able to leave her WTO job as an engineer, you know, healthy six figure salary.

And SHE had a few rentals both short term and but the way that SHE supplemented her income was at, in addition to the cash line SHE was getting from her house hack in her short term, mental SHE was also offering design services to other shorter mental investors. So he kind of built this ancel ary business that bolt supported her short, her own shorter mental, but then also was a way to generate an active income aside from the cash ler from her, from her portfolio. And that's what kind of gave her the confidence to say, okay, let me, let me jump in and do this full time so I love the idea of out of those.

Yeah, he scaled that far. Death has has the tools that other people may may want to utilize to. So he just needs to lean into .

that one thousand percent. Well, guys, before you jump into our second question, workers want to thank you so much for being here and listening to the podcast. Now as you may know, we hear every episode of this podcast on youtube as well as original content like mcs, actually a new series worker resource.

Now guys, that we've got a really big golt one hundred thousand subscribers on our youtube channel, and we need your help. So if you aren't already, please head over to our youtube channel at youtube dot com slash at real state, Ricky, and subscribe to our channel. Want to invest in real city, but don't have the .

time or know the best local markets to retirement. Has you covered a look here to do? They've helped thousands of investors, just like you find, turn key homes across the best U.

S markets, best of all, they do all the heavy looting for you with over two hundred and fifty five star reviews on bigger pockets. Rent to retirement expert helps you build strategies to retire early through real state right now, renter retirement offer some amazing and sentence on turkey. New construction properties like up to thirty thousand dollars off of new bill Prices, zero percent down alone options, three point nine nine percent interest rates.

So guys, don't out. These deals won't last. Text R E, I to three, three, seven, seven, seven, or visit bigger pockets outcome, slash retirements, start investing in top casual markets.

I love the holidays, but with all the dashing through the snow and decking the halls, my skin takes a hit. Cold weather and stuff, indoor heating can lead a doll dehydrated completion. That's why I you scientifically proven skin care products from one skin.

One skin is the world's first skin largely ity company. One skin addresses skin health at the molecular level, targeting the root causes of aging, so skin behaves, feels and appears Younger. It's time to get started with your new face I and body routine at a discounted rate today.

Get fifteen percent off with the code rookie at one king dot CEO fifty one skin dot C O. With code rookie. After you purchase, they'll ask you where you heard about them.

Please support our show and tell them we send you. We only have one body, one skin, and only you can choose to make a Better h healthy with one skin. Hey.

henri washington, here from the on the market pod, you ever get frustrated while hunting for all the market properties? Well, here are not alone. Just as alex, a fellow real state infector, who was in the same boats struggling to find those hidden games.

They need discovered deal machine. Now, alex effortless lesly locate off market games, leveraging deal machines, free, unlimited contact data powered by the robustness abases by nine one one call centers, and that automates male campaign seamlessly. So you ready to revolutionize your realist game like alex, via bigger pockets that comes less deal machine, sign up for free and start transforming your property hunting today.

our guys, welcome back. Let's get me to have a second question here. So this question is, my wife and I have a rental property in sudden california that is appreciated, a time we voted for about six years.

We have close to six hundred and fifty thousand dollars in equity, but the current cash was only three hundred box per month. We have two Young kids in the suburbs of chicago. I'm considering a ten thirty one exchange to buy a vacation rental closer to wear.

We're based. We would look in a desirable area of wisconsin hig an or in inDiana. There are several lake areas that have winter appeal and summer appeal now being local, we can use with our family as well.

Um so a couple of questions here. Number one, what's the outlook for vacation rental markets in the midwest? Number two, how realistic is IT to net fifty eight to eighty k on a property worth five hundred to six hundred thousand dollars?

Number three, how chAllenging is that to create and self manage a highly rated vacation mental? Number four, how many hours of work is IT to get set up and how many one systems are in place? Number five is a true airbnb, and verbal fees are between three percent and five percent.

And number six, what else some are not thinking of or considering with this property and this strategy. So a lot to impact you. We've got six different points that we want to hit first before we actually jump in to to answer these questions.

You say you ve got about six fifty and equity, um I would just know make sure you really double that number in. And like where you get in that from, you get that just like a estimate. I don't I trust that number.

But if if you've talked maybe an agent, they told you, hey, we think we could list for this much. Maybe you're neighbor next door sold for that amount t and you can know if your equity is, but I wouldn't make any big wild decisions until i've really sil tif ed what the actual equity amount is. But let's actually get into the questions here.

So the first piece is what's the outlook for vacation mental markets in the middle st. Have the insider just what do you thousand. And generally.

it's that such a broad question, I would say, because the midwest is so fast, like there are some extremely markets in the midwest, you know like cathartic lake and hawking hills. And there's there's some some really, really good ones, but there's also some really bad ones. So that would be something that we really need to dive in to see the data for what there are some of the particular areas that you're looking into.

And if he goes back to, will the tourism numbers coming in there or the demand for that area really support what you're trying to do there? And is IT is the supply of passing the demand. So is the thing about short term rental.

And when you're analyzing markets is they're all very, very specific. You could have one market that is a perfect theory to go into and then forty minutes away, an hour away, even know twenty minutes away, you're in the market that probably isn't the one you want to dive in to. So that would be something that you really need to identify and nishi down on a couple of the Marks such a really interested in.

And then we can get a little more granular on what some of your goals are, the property type you're looking for? And is that market going to be the best one for what you're the long term goals are? It's a short term rent, but we're looking for long term success is um know we always try to preach about yeah .

I think you hit the all the head on that as Walker. There are twenty thousand plus cities in the united states and in every cities probably got a different profile in terms of whether or not it's a good market for vacation rentals, but just in terms of what you should look for. So there's kind of two different sets of criteria when you're evaluating a market in a short term mental basis.

The first set is is somewhat personal based on your unique goals and situation. And then the other set are specific to the city. So when you think about the personal side, one is what is your purchasing power? How much cash you actually have to deploy?

What kind of loan amount can you get approved for, right? So there's that picture on personal purchasing power. There's your desire to actually use the property yourself. There is some people whose maybe entire motivation for buying a short term mental was simply because they to subsidize the cost of voting their own vacation home.

There are other people like me who buy airbnb, es and cities they would probably never vacation to, right? And they're just really different by the the economics of at all. So you've got to decide for yourself kind of where a where you fall right to your own personal purchasing power and then what your actual desire for using that property or two big things.

Now for the market itself, the things you want to look at, our first policies from a regulatory and point, can you actually legally rent out a short term, tal, in that market? Because I think a lot of people get fixated on, on man and the city looks straight and there's this and there's that and they started doing all this research. And lam, behold, there's a cap on short terminals and there's a one thousand people on the waiting list.

So if you bought something, maybe you could rents IT out in five years, you know. So understanding the regulations, I think, is super important. And then going into what you mentioned, get out about the underlying just health of that market from a short term tal standpoint.

How is the the number of listening today compared to a year ago? Are you seeing maybe a lot of uh, people leaving that market may be because demand just isn't there? Or are you seeing the inverse of that? Or maybe you're seeing you know thirty percent growth year every year, which may be not that may not be sustainable either.

And these are too many people come in into that market. So what is what is the supply look like? And then on the demand side, how how is occupancy looking year over year? How are daily it's looking year or a year and is our healthy growth and both of those numbers as well. So I think those are some of the the things from a market perspective that I would look at good and .

anything that to that all about very valid points. I think the one thing that kind of jumped out to me you were talking is, is if you're looking at the markets to once you you chek out regulations and things is you're desire to how much you want to use the property and how much you can actually spend to get IT up to the standards that of the top performing properties that are there.

If you're in a market that is they are all all the properties, they are decked out and theyve got in texas, i'm speaking like they get puls and know hot tubs and saunas and game rooms and theres, and you don't have that financial money to go in and do something like that. And you're really wanting to compete at the top of market that might not be the right market for you with with your affordability, your buy ability, I guess, is the word I would use there. So you got to just really look at some of the properties that are there and see if it's something that you want. I I don't like using the word compete, but to see if you wanted compete against those properties, that's essentially what you're going to be doing. And if IT comes down to if it's really a lot about personal use, then you need you know, that's going to factor in a lot to of the market you're in IT and where exactly you're going to land in with what type of minutes as you need to put in and how you will be able to compete with those other properties there.

Now the second part of this question is how realistic is that in that fifty to eighty on a property that that I buy five hundred to six hundred? K, so what is going to do some some ref numbers here, like if you can get like a twenty percent yield on a purchase prise mating, if you buy a property for five hundred. K, if you can do about a hundred and revenue, that's gona get you a decent cash on cash return.

That's revenue, right? So you you're probably going to net fifty to forty percent and against super ball park meers years over to one hundred and revenue, maybe you can net fifty to four k on that property. Is that like a fairly part get like feel like that's like A A realistic right?

Yes, I use about forty percent.

Yeah I feel like fifty k on a five thousand dollar property as possible. But again, a lot of that comes down to the market that you choose because a five hundred thousand dollar property and the smokey is very different than a five thousand dollar property and demotion hour and the revenue potential I can in the smoke is you're probably in the two bed at five hundred k were as in demand, you maybe getting a five bed.

So in demand in possibly you can do one hundred k and a five thousand dollars urchins. In the smokey, maybe you going to do seventy, eighty. So I think a lot of IT comes down to choose in the right markets that actually support that level of revenue given that purchase Price. And that's where you know kind of tize back into that. First, the first question like what markets do you actually land on?

And though you think to pay attention to with that is, is the property may be worth five hundred, but IT goes back to the amenities and how much you might actually even spend on that tooth of those factors can add up very quickly that your nett starts to drop a lot if you're having to put a ton of work and if you're buying something, turn key with all the amities there, they're selling IT as a short term rino.

You're probably going to be paying top, top dollar on that. And so that's something you're going up to like really, really analyzed and see. Like people are hit to IT now and they're selling a short terminal.

They're going to be able to get a premium if it's furnish ed as all the amities and is basically ready to go. So you might need to be independently market. You're in the area.

You might need to be look for something that either needs a little work or doesn't have all those things already supplied and you is still able to be rented as a short term rental. So turn key properties are probably a little harder to hit that, but all of them are definitely it's all doable can happen. But IT goes back to that market research and you know seen what your end goal is going to be.

Our next question. Here's about self managing. So he says, how changing is IT to self manage a highly rated vacation? You OK to this one a to you first, because know yourself managing all of you. You know, how much time do you do you say, maybe goes on a, on a weekly basis to manage your import foo.

I co host quite a few two as well on that are more just general style single families. And I have some unique days, some of my unique days. Maybe take a little more when I first started on the maintenance side because there's some new answer to him.

But now I work full time job. I spend a lot of time with my girlfriend and you know, going out. I'd probably only spend at this point now because I built such good systems and Operations, probably maybe an hour a day, five days a week, I would say, and that's me you optimizing listings.

Um I do you know like I have now, I built out the team. I have virtual assistance. I have people that I always did all the marketing myself, but now I have some people helped me with the marketing side.

But that took when you're first starting, it's going to take a little longer. You got to work on your business and not work in your business. So it's going to take a little longer when you first get started.

But if you build those stems and using tools like you know, a property management software like hospitable or something like that, there is going to be so many time saving tools within IT that eventually you can get to kind of where I am that I could probably spend four or five hours a week on my age or runs if I wanted to, and they're all going to run very smoothly. Something goes wrong here and there maybe a little longer. But for the most part of my team, the fact that I took that time to really build IT out and and build the systems for them IT IT kind of works itself a lot of the times.

one thousand percent, a typical folks. You know, if you're talking about your first one, you're doing this by yourself. Once you set up IT really should should be more than a few hours a week if you've done at the right way. But I think the mistake and you you kind of tech on this with your response, but I think the mistake that a lot of new short term tal investors make is that they they miss certain steps during the set up that then make the management more difficult.

You know, like there I was talking someone the other day that you know because he was he was a property manager and he had like to know plus listenings, but no pms SHE shouldn't have any type of software that he was using that was just airbnb. And like me, there's so much work that goes into doing that and and doing IT effectively. So just setting up the right tools from the beginning can save you so much time.

Your property entrance software as a must have, a dynamic pricing tool as a must have. I very much believe that having a good digital guide book because they must have because that's how you can preemptively answer a lot of questions from gas without them having to reach out to you. To get those answers, I can just click and link, get the answer, see a video watching, whatever may be. But I really do feel that it's the wrong set up that typically leads to more headaches .

during the management side. I think two tips that I have been very successful for my self and always tell people that always resonate well with them is you need to stay in your property. I stayed in any property, I get you.

And if it's a coasting property, i'd tried to stay there at least a couple days. Are as long as I can to figure out that every property has new answer to IT. So figure out one what needs to be fixed if there's a problem in front of you like and that, that guests keep having.

like. For example, one of my single family homes, they kept having issues with the the keypad for the automatic door. I had to spend some extra money to change out this log, do some things, but now i've solved that problem. I don't have that problem anymore now. Um and the other thing I always recommend to is is if you do a walk through and this is what I do for every property, I do a video walk through and I put IT on my youtube of me walking through the property showing different nuances like how to work the hot tub really quickly.

How to know how do you turn on this ac unit or is sound like that it's only four guest, but then seeing a one a real person that know i'm not some big corporation out here, they see me being the owner walking through and then they also are able to visually see different steps within the property. You can use Q R codes if they're some nuance, like at our our son, one of our property, we have A Q R code right by IT people can scale. That takes into a youtube video of us showing how to use IT.

Some people are visual learners. Some people like to read when they learn. So I like to be able to hit different ways that people are actively looking at how to learn about the property sustained in your property and and making like a quick walk through video of us. The owner is always going to make the guest feel more comfortable and and avoid you, avoid you have an answered the same question over and over and over again.

Our first short time, mental in california, in the desert and this in Joshua. There's no street lights in the city, and we would have guess who would arrive late at night. And because there's no street lights, the property sits back pretty far from the from the the road.

It's pave road, but like the property just sits back from this road. So when we first knowledge, we kept getting guessed that are calling and saying we can't find your house, you know, on their upset because they're y've been road tripping for eight hours. They don't know where it's out when they get there. So we literally jumped in the car. I'm driving, my wife is recording and we're driving down the street where the property is when we say, hey, if you're coming down this road, look for this mailbox and there's a number on the mailbox, look for this mailbox and go down that driveway and then the lights we're turn on .

and you'll see the property. I did the same thing yeah .

all the time you because it's something that happens all the time, right? But you know you get zero complaints once you solve that issue. So I think a lot of the management piece comes down to listening to where the sticking points are for your guess and then creating a solution, giving IT to them before they need IT. That's how to prevent those shoes .

from proper percent.

I think what where really IT comes down to from a management side is just managing expectations because typically, that review doesn't necessarily come from the experience itself. IT comes from the expectation of the experience being here and the reality being here. So i'll give you guys like a real life example.

Um we added like a like a cowboy pull to one of our properties. This is a few years ago and we were filling IT up for our guests. We have the cleaners do that before the guests got there, that where was Sparkling clean water when they got in.

But what kept happening was that it's the summer in the middle of the desert. So by the time the guess actually gets to the property, the water's warm and there's like dirt that's like flown in from the the distance in the desert, right? We kept getting people complaining about the humidity, saying ah IT was great able when we got there, the cowboy pool water is warm and dirty.

And it's like, man, it's like we added this amenity, this post to increase the guest experience. But because the expectation wasn't the same, IT was harder. So what we did was we stopped filling the pool and we just told the guest he, the cowboy pool is there.

If you want to use IT, there is a holes you can fill IT up and restraining if if you do decide to use IT. So now it's the less work for our cleaning team because they don't have to fill IT up. And the guess expectation is that it's going to be empty when they arrive.

So they're not looking for ice cold water that Sparkling clean when they get there. So we're always looking for opportunities where we can I mean, this in the right way where we can manage those guest expectations. So they know they're stepping into.

So one of the last questions that here is, is IT true that airbed fees are between three percent and five percent. So not quite so. Airbnb will charge you three percent, but the charge that gets about to also total fees about fifteen percent.

I want to save verbs around the same. Um the fees are actually a lot more, but it's just that you as the hoster aren't eating all of those costs. Um however, airbnb does give the option. I think they've actually force IT in like other parts of the country, but airbed does give the option for us a host to eat all of those calls. Um it's really, really hasn't caught on here in the states like none of the host everything over to doing that, but the fees are twelve to fifty, fifteen percent depending.

I think one thing to talk and talk on that to as people always talk about the fees and i'm a big direct booking advocate um but when you're doing a lot of direct booking, the thing that people don't realize is they're gona charge you A A payment processing fee that I have to pay three percent on. I have to pay some extra marketing. You know like there's fees that come in, in the direct booking.

So airbnb and verbal fees are not all bad. Know like there's definitely posing cons to IT, but you're gonna fees anyway. You're booking something. So just make that into your your performance and you'll be fine with .

the last part of the question here is what are someone not thinking of or considering properly with this potential strategy? So i'm just just going to hear in that person story here because any any last pieces of advice as you'd look to make that transition.

I would just really hone in on what are your real long term goals with this property.

Like I know you, you're really there's a few things you're thinking about and they if if you're a long term being in that area and there's a lot of positives that you're looking into, but this might be a short term solution for a couple years you don't want to but off more than you can show and then not really see the vision for know what you want to do within five to ten years with them. That will also help you make your decision on the property, your home and in. But they are thinking about a lot of things in the right way.

I think. I think the only lasting that I add is that six fifty and equity, that's a good chunk of equity. And I think if you've got I mean, you say only thirty introdux a month, but thirty box a month, thirteen thirty books a month and cash low for my property in california, that will probably continue to appreciate over time.

So it's like do you really want to get rid of an asset that's cash slowing that's appreciating for a property, you know, inDiana? And like does that actually make sense? And I wonder if maybe there's other ways that you could potentially happen to that equity without actually giving up the home.

Could you get a headlock? Could you get some other line of credit because you refinance like other, other ways to leverage that equity where you can still keep this asset that's casual, positive and and and appreciating market to still got and fund your purchase of this next property. So just something no second set is like selling at the only option for you.

Our guys look, we love talking about real state. We love answering questions just like this for you all. And we love IT if you could have to the follow on on your podcast APP or wherever you're listening. Now we have taken one final outbreak and will be back after this with our final question.

our current interest rates making you depressed about casual, what if they didn't have to be that way to retirement? Has two point nine nine percent seller financing available on turn key properties. You heard that right? That's a cell er financed two point nine nine percent interest rate where the average catch al is over nine hundred dollars per month.

They also have options where you can put as low as five percent down on multiple investment properties with no P, M, I rents to retirement as the nation's a leading turkey investment company that understands what IT takes to be successful in dynamic real state market, their reputation speaks for itself with more five star reviews than any other company on the bigger pockets website. Rented retirements offers fully turkey properties that are newly built or renovated at least and managed, allowing you to invest with confidence in the markets, offered the best returns. To learn more, visit rent to retirements. Dcom, that's T O retirement 点 com or text R E I to three， three, seven, seven, seven, again, text R E I to three, three, seven, seven, seven. It's the holiday season.

so i'm going to give you guys one of the best gifts I ever received, the gift of healthy skin. So IT looks and feels healthier, and holiday ready skin is the world's first skin langevin company. The 点 at the molecular level targeting the root causes of ageing， so skin behaviors feels and appears Younger. It's time to get started with your new face I and body routine at a discounted rate today, get fifteen percent off with the code rookie at one skin got CEO that's fifteen percent off one skin with code rookie after you purchase you'll ask you where you you heard about them please support our show and tell them we send you we only have one body, one skin and only you can choose to make a Better H L thy with one skin .

hey Henry wash to hear from the on the market pub ever feels stuck while searching for off market deals will let me introduce you to sera, a savy real state investor who turned her fortunes around with the machine now taps into free, unlimited contact data powered by the same database. Ninety percent of U. S, color R, D systems SHE easily since automated male campaigns.

And thanks to deal machines, new private investigator can even track down those elusive corporate leads. This powerhouse combat keeps her steps ahead of the market. One to invest like sera had, the bigger pockets that comes slash deal machine and senate for free, start turning hidden opportunities into your investment success with just a few our guys.

Welcome back. We get into our last question here. So here is that question. IT says, so i'm looking to buy a property in a ski town is currently being used almost exclusively as a short term tal, the counter is pretty full through the end of the sky is. And already my rotor told me that they have an agreement.

The seller has an agreement with the property management company that says we have to honor all bookings. Is this actually true? While we are excited that the calendar already full, we would like to get up there and stay there once or twice and also makes some minor changes to the property.

Lastly, I think given the fact of the counter is already fully booked through the sky, seem this means they are pressing IT too low. That's a lot of words to ask. Do we actually have to honor all of the bookings? That seems strange that we would have to honor the bookings that far out or in colorado things in events for any advice.

So two questions here. Number one is, do they have to actually honor all of those in the second pieces? They believe that the pricing is maybe too low.

Listed that first peace about like honoring those. You have you ever purchased anything that was like an existing airbnb kind of situation like this? Actually the fortunate I bought .

was yeah I haven't purchased one and taking IT over directly even in my four co hosting ones, they all were not airbnb. Es before um I got involved but I know heard of a lot of people being in the situation, you know a different property managements out there and a lot of them will create their another listing and not get IT alive. And then mark off the calendar a certain amount dates in advance. But i'm sure you can probably answer to this Better because you've done at first time.

yes. So the very first time that we be purchased, very similar situation. IT wasn't book up that foreign, vance.

I say there was like maybe sixty days out. There were some bookings on the calendar. So as part of the purchase agreement, we did have to honor those bookings. And the reason was because a lot of these, especially like the old school property managment companies that they're very, very um jaconet almost with their property management agreements where it's like if you break or make them lose bookings, like you know, I just gets all kinds of crazy.

So when we purchased our very first car bnb, what we did is exactly what you said you are where we spend up our own listing when we we then block to the old listings more immediately. So no new bookings could come in, but the existing booking stay there. And then we just blocked out on our calendar whatever dates were booked by the property management company.

So to interact with those guys, we didn't really do anything like the pm still handle those reservations, but they were we were just the owners at that time and we still got the payout ts for those as well, right? It's the sound like the previous owners isn't getting that revenue. You are getting that revenue.

So IT a IT is common. We've gone through IT. Um and again, depending on how strict that property managment agreement is, maybe can get around IT, maybe you can. Now the second part of that question is deeply their pricing too low. Now I feel like that that's hard to say, right?

Because there are some markets without bookings, ly time could be super high and maybe IT is Normal in that market for the ski season to be booked out half with the summer. You know like there are some markets or that way. So know just what do you thought you can you would you see that you might say, man, the Price too low.

You hit on the head with with the market situation because there are especially in a ski area, there are some markets that they thrive in this a few months a year, and people are booking out months and months in advance. And some of the best if it's one of the Better properties in the area, there's a reason why it's probably booked that high.

I personally don't like seeing my property's book a hundred percent of the time, all of the time because then I think like i'd rather be in that ninety, ninety, ninety five and eighty five percent range pending on the property because then I feel like i'm minimizing a little bit of where also, I know i'm heating the exact Price point that I wanna hit, but that a lot of it's gonna down to market. But I personally think IT may be Price just slightly underwear IT needs to be but you need to look at the whole calendar um from a holistic and see for the whole year. Like is this the chance for the area? Is this typical for like look at other properties.

Are all the other properties boobed out one hundred percent that are to the top performing ones there? If not, then maybe you maybe there is a little bit being left on the table, but that's why use a really good dynamic Price in software and you really get in grain in the know listing optimization and checking in with your rates like that. And a lot of those things can kind of work themselves out in that data. You know, the automation they have within it's. Got to tell you a lot more than you could just guess off the top of your head.

I think the only other thing i'd add just what what else to look out for in this transition. And and this was a chAllenge we had because we actually bought two properties that were previously with property managers, and they had a lot of little signs throughout the property that had their phone number, and we didn't catch all of these signs.

There will be sometimes when to guess, we see the signs and they will call the old pm and they would have to reach out to us. So just make sure you do a four thorough sweep, remove any simlins of this other pm company just to make sure that, that as these bookings move over to you, that you're you're not deliver. Thinking of that, the second piece is um make sure to get your own photos. I think I can be tempting of like the property photos, that good satch own photos because we when we bought our first one, we were still trying to forget out the professional photo here.

This is use the old lands and then we get A A very angry email from that pm, say, hey, we owned these photos and you can't use and we're going to sue you if you don't take him down, right? So and very, very onion, some of these, some of these pms, but just make sure you do a full sweep of anything that's lingering from that all pm, and get rid of IT and just super cleane slate for you as you you can get a life. Well, guys, thank you so much for for hanging out with us as we answer these questions. And gear IT, thank you for seventeen for actually while she's out and I do have really enjoying our conversation talking much short .

term tal today yeah likewise I always love to chop shop with you all of short term rino s and looking forward to both going to be cooking up next also.

some guys we look all of our recent are listening. If you enjoys day's podcast, i've got one one small favor. Whatever podcast player platform is you're listening on, be sure to subscribe and follow this podcast again.

We ve also got a goal of getting to one hundred thousand subscribers on our youtube channels. They're not follow as they are just search real state. Ricky subscribed at a little beth and unitization guys. I appreciate your hanging out with this. I hope you got some buy from today's episode, and I will see you next time on real state, Ricky.