Tour of Brandon's Newest Vacation Rental Property + Q&A

TL;DR

Brandon Turner tours his new vacation rental and discusses strategies.

Transcript

What's going on everyone at Bigger Pockets? This is Brandon uh and uh I am going to give you a tour of my new vacation rental property. This is just uh uh we've been working on this property for a while and in fact I did a tour here on uh Facebook Live back I don't know 2 or 3 months ago and it was still in the rehab process. Uh this has been a fai... Read More

Key Insights

• Brandon Turner shares a tour of his new vacation rental in Aberdeen, Washington, highlighting his strategy of investing in an area with few vacation rentals but many hotels.
• The property, bought for $15,000 at a foreclosure auction, underwent a slow, side-project rehabilitation costing around $30,000, totaling an investment of approximately $50,000.
• Brandon plans to list the property on Airbnb and Home Away, aiming for an average rental rate of $125 per night, with a break-even point of $1,500 monthly income.
• He emphasizes the importance of the 'wow factor' by providing guests with complimentary items like Snicker bars and personalized water bottles to enhance their experience.
• The property is decorated with a Pacific Northwest theme, featuring local photography and a mix of new and thrifted furnishings, keeping costs low while maintaining a unique style.
• Brandon discusses the BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat) as a powerful method for building a real estate portfolio, allowing investors to recycle their capital.
• He shares his philosophy on managing properties initially to understand the process before handing them over to property managers, ensuring a smooth operation.
• Brandon highlights the potential of using a 203k loan for new investors to buy and rehab a multi-unit property while living in it, reducing upfront costs and building equity.

Questions & Answers

Q: What is Brandon's investment strategy for the vacation rental?

Brandon's strategy involves investing in a town with many hotels but few vacation rentals, aiming to fill a market gap. He plans to rent the property on platforms like Airbnb and Home Away, targeting an average nightly rate of $125 to achieve a monthly income of at least $1,500.

Q: How did Brandon acquire and rehab the property?

Brandon purchased the property for $15,000 at a foreclosure auction. The rehabilitation was a slow side project, costing around $30,000, bringing his total investment to approximately $50,000. The property features a Pacific Northwest theme with a mix of new and thrifted furnishings.

Q: What is the BRRRR strategy that Brandon mentions?

The BRRRR strategy stands for Buy, Rehab, Rent, Refinance, Repeat. It's a method for building a real estate portfolio by purchasing properties, rehabbing them, renting them out, refinancing to recoup the investment, and repeating the process to acquire more properties.

Q: How does Brandon plan to enhance the guest experience?

Brandon focuses on the 'wow factor' by providing guests with complimentary items like Snicker bars and personalized water bottles. This approach aims to make guests feel welcome and encourage positive reviews, enhancing the overall experience and potentially increasing bookings.

Q: What are Brandon's thoughts on property management?

Brandon believes in initially managing properties to understand the process before outsourcing to property managers. This approach ensures he knows how things should be done, what costs to expect, and helps in setting up efficient systems before handing over management duties.

Q: What advice does Brandon give for new investors using a 203k loan?

Brandon suggests using a 203k loan to buy and rehab a multi-unit property while living in it. This strategy allows investors to benefit from a low down payment and a fixed mortgage rate, building equity while minimizing upfront costs and living expenses.

Q: How does Brandon plan to handle the property's management and cleaning?

Initially, Brandon plans to manage the booking process while his assistant, Tracy, handles cleaning and turnover. Once they establish a system, he may hand over the cleaning duties to a professional cleaner, ensuring a smooth operation without compromising service quality.

Q: What challenges does Brandon foresee with the vacation rental?

Brandon acknowledges the risk of not achieving the desired occupancy rate. If the property doesn't generate enough income as a vacation rental, he plans to convert it into a long-term rental, ensuring it remains a viable investment by adapting to market demands.

Summary & Key Takeaways

• Brandon Turner gives a tour of his new vacation rental in Aberdeen, Washington, discussing his investment strategy in a town with few vacation rentals but many hotels. He aims to rent it for $125 per night and emphasizes the importance of guest experience.

• The property was purchased for $15,000 at a foreclosure auction and underwent a $30,000 rehabilitation. Brandon plans to list it on Airbnb and Home Away, aiming for a break-even point of $1,500 monthly income, and highlights the use of the BRRRR strategy.

• Brandon discusses the potential of using a 203k loan for new investors, emphasizing the importance of understanding property management before outsourcing. He also shares insights on managing guest experiences and maintaining a unique property style.