Hey guys, it’s Sharon from digital nomad quest.
And it’s Sean with everything, Rei.
And today we’re excited to announce that we have 23 units now and we are going to go over our real estate investing journey and goals. And where we’re going to go from here. If you guys are new to this channel, welcome. I’m all about teaching how to build passive income, become financially free and design your best lives. So if you guys are interested in that, make sure to subscribe and hit the bell button to be notified on my latest videos. Make sure to subscribe to Shan Shan where he talks all about real estate investing. So let’s start with the moldy house update. You guys have probably seen in the previous video where we’ve been talking about this moldy house that we actually purchased that $120,000 It was originally 125. We got it down to 120 Recently, and we actually signed closing docs a few days ago. So really excited to move forward with this project.
Yeah, we wouldn’t ask her for this property for two months. And a big portion of that because we were buying it from a short seller, we didn’t know about buying a short sale has a lot extra regulations behind it, the short sale lender has to prove who the new buyer is going to be. And you have to sign like an agreement saying that you won’t sell the property in next 90 days, they basically don’t want somebody to make a huge profit off of the short sale.
Yeah, so you guys have seen also like our updates, we actually traveled to Texas, we visited the property, I did not go inside it because it’s super moldy, I was you know, concerned my help, he actually went inside a bunch of times probably shouldn’t have done that. So now after closing, we’re going to be starting that mold remediation process. And it’s probably going to be a week later, we’ve already agreed with this company we’re going to use. And then we’re also going to start the GC stuff after the mold remediation process is complete. So everything’s kind of in place. Now we spoke with a lot of these people actually in Texas. So we’ve kind of vetted out who we wanted to use. So really excited to move forward with this, instead of a flip, we’re probably going to do the bur strategy or we’re going to do a cash out refinance, take out some of that money and keep it as a rental property because we think it’s going to appreciate in value. Now speaking of which we you know, we went to Texas, and we’ve been feeling like, hey, there’s a lot of opportunity there.
Yeah, so Russia thinking about moving there for about a year or two. And we’re highly considering moving in just like Austin Metro to be kept near where the properties are. And also to build more networks with people over there.
Yeah, we’re thinking either Austin or Dallas. But we’ve been leaning towards Austin, just because a lot of the things that we’re planning to do from a real estate perspective makes a lot of sense. You know, we have friends in both cities. So that’s why we’re debating it, we’ll see what happens because we also want to make sure that the numbers work. So the idea is that we wanted to rent out this property that we are in in the Bay Area, either Airbnb it out, or possibly do a long term rental in the future. But we’re probably going to do the Airbnb route. Because it’s all furnished, we’ll probably make more to the thing is, with the regulations, we can’t actually do under 30 days. So we’re probably going to have to do like month to month on Airbnb. So that’s the plan. And if we actually do this, we would probably make maybe double the mortgage that he’s paying right now for this property that he owns. So that’s why we’re like, okay, if we do that, and then we buy a property in Texas, that would make up for the cost of living there. And instead of, you know, just negatively cash flowing on this property that we’re staying in, we’d actually be breaking even or possibly even profiting, if we can do the numbers correctly, we just want to make sure we do the numbers, right? Because if we decided to move out of Texas in the future, like we don’t want to negatively cash flow on that property. So we got to make sure that it could work as a rental property as well. So it’s gonna be a little harder in Austin, in my opinion, because it’s so expensive now, but we could possibly look in like surrounding areas, like maybe North we’ll see what happens. Now with preparing for this move. We actually need to make this property ready for Airbnb guests. Yeah, so
we’ve been getting close for landscaping, painters would come through, and we might even do some plumbing. So the master bathroom this house is relatively outdated within about changing the new toilet, maybe putting a new vanity more importantly in the shower, and that’s a situation there is old, it works for our purposes, but for our new guests coming in there, they might be surprised and how it functions. So we might just take that out and put a new one.
Yeah, we’re trying to find that balance. We don’t want to like do a full renovation we just want to do the stuff that will make sense for our guests. Like we don’t want them to be confused when they’re trying to take a shower and they don’t know how to operate it so we just need to make sure it’s ready from that perspective. Another thing is we’ve actually been learning more about Airbnb we’ve been taking my friend Michael his course so if you guys are interested in that make sure to check out the link below but basically it’s all about Airbnb investing and I’m actually super interested in Airbnb lately because although the longevity of vacation rentals is kind of questionable in my opinion, I still think that it can be super lucrative if you do it right. You just need to make it like this awesome experience for guests it’s a little different from long term rentals but if you can invest in properties that can work as an Airbnb as well as a long term rental then you’re kind of safe right so you you know Airbnb it out and then in the future if it doesn’t work out, you can still keep it as a long term rental then you’re like good to go. You got multiple exit strategy so you’re safe. So I think we both agree that Airbnb is like on our mind, we think that it could be super lucrative for our business and using the Airbnb strategy, we could probably increase our portfolio even greater overall, we still think that out of say real estate investing works really well for what we’re trying to do. We think that holding on two properties is the way to really grow your wealth, you can get quick cash from wholesaling, flipping all these other things, but in the long run, it really makes sense to have a large portfolio of long term rentals. And for us, it makes sense to invest out of state because in the Bay Area, it’s so expensive, we’re able to invest in more affordable markets, that makes sense for us that cash flow for us. And if you guys are interested in doing that, as well make sure to check out remote rental riches link in the description down below, it’ll kind of take you step by step on how to get your first out of state rental property. These other strategies we’re talking about like Airbnb wholesaling, flipping, all that stuff will just allow us to get more capital to get more long term rentals now doing all these different things like Airbnb, you know, having to kind of move to another place like all these things are really, in my opinion, uncomfortable, right? Like we are comfortable where we are right now. Like we could easily just stay here and try to grow that way. But I feel like this has been on our minds for a while. I’ve talked about this possibly like last year, maybe two years ago, because I think it makes sense. So I feel like if it’s something that keeps calling back to me, and even though it’s uncomfortable, like I feel like it’s something that could skyrocket our growth, and it’s something to explore, we should probably do it. Yeah.
And I guess another reason why we’re moving over there is because finding deals here in the Bay Area are relatively difficult. And you actually spend a lot of money and pouring resources into finding deals and then buying them. So when we move over to Texas, we think we’re going to have more opportunities to do more wholesaling, and more flipping. And we’ve actually been playing around with Prop stream a lot. Prop stream
lets you filter for different categories, different features, so that you can find motivated sellers to sell their house. And
property is also a great tool if you’re driving for dollars. So while we were in Texas, we’re driving around in different neighborhoods, and locating homes that look like they need a lot of work. And then we could just save them instantly using the mobile app. And it was very convenient.
Yeah, the mobile app was actually really surprising to me, because it actually tracks the route you’re driving. And then you can also save properties really easily. You just have the property and then press the heart button. And then now you have this list that’s connected to your prop stream account. And then you can basically save that list, export it, skip trace it if you want. And that way you can contact the owners of distressed properties, maybe those people are going to be motivated to sell, they need to get rid of it. Maybe they are in situations where they’re stuck. So you can help them out by buying their properties. So that way we’d be able to get more off market deals. When we were traveling. And we were like looking around, we found there were a lot of different properties that we wanted to market to. So I feel like in the Bay Area, it’s a lot harder, in my opinion, there, it seems like there are more deals to be had. So that’s why I feel like it synergizes well, we met also a lot of interesting investors who wanted to partner with us too. So I feel like there’s a lot of potential there that we could work with them. They even have their own contractor crews. So I feel like if we partnered with them, it could make a lot of sense, we could scale up quickly. So with flipping and wholesaling, I feel like you need to find these off market deals like this, you can’t just always go on the MLS or, you know, look online and stuff, you have to actually go out and do the work be on the ground, drive around, find motivated sellers, market to them with direct mail, calling, emailing, possibly like things like that to see if they want to work with you. Another thing is if you are trying to do direct mail marketing, another great tool is ballpoint marketing, they actually have a system where they can create handwritten letters for you. So that doesn’t look like you’re mass marketing to everyone. So it’s a great tool as well. So we’re combining that with Prop stream, we’re probably going to do more tutorials on this in the future so that you guys can see how to you know, acquire more deals, tap into inventory that others might not have access to. So it’s gonna be really exciting. I feel like we’re learning a lot already. Even that moldy house project, we’re learning so much because we are getting closer to the renovation side of things. I think in the past, without estate real estate investing, you don’t always have to be super close with the renovations because you can have the property manager help with coordinating all of that stuff because they have the knowledge to make things rent ready based on that market. So we trust our property management companies a lot before this project, we really wanted to be more involved in the future. I think we want to do more of that. Like with flipping with burgers, we’re going to try to be more involved with the process in the future future. I think we’re thinking about possibly opening a fun, where you know, you guys can start investing with us because actually I get a lot of messages asking how can I invest with you? I even get messages where they’re like, Oh, can I just give you money and then you invest it for me and then like, you know, they get a cut. Like I literally get a lot of messages like this. So I can see a lot of you guys do want to work with us. And I want to see how we can make this happen. So there’s that portion and also we’re possibly thinking about doing like a private membership group in the future where you know, it’s kind of like a mastermind amongst investors like serious investors. What We can have trainings, we can have monthly q&a lessons, we can even bring in speakers and we can also have a Slack group or we you know, talk about different deals we have. So it can be really exciting. I think there’s just a lot to think about. I’ve kind of talked about this before, but I feel like we’re getting closer to that point where we needed start doing stuff like this. I think with real estate investing, like networking and collaboration is so crucial in this space. So the more we can kind of create that tool for you guys, the better I think, and it helps us to so that we can all work together. And lastly, I have mentioned stuff like larger multifamily properties and laundromats I think those are still on our mind, but they’re not as priority as the stuff we’re talking about right now. But you know, all these things I really want to start doing so I can report to you guys how to do these things. To me it’s really fun to attempt new income streams and new investment types and just like let you guys know how this all is going down. I’m grateful that we’re doing this investing stuff. And this online business where we’re like kind of showing you guys every step of the way what’s going on because it feels really fulfilling to us. So I know we covered a lot in this episode. As you can see we have a lot of big plans hopefully we get you know all of these things done there’s definitely a lot but we’re gonna go one by one and try to tackle each one so hope you guys enjoy this episode. If you guys liked it, let me know in the comments below. Which one is more exciting to you guys like the flipping side or the burr side or the wholesaling side? Airbnb side there’s so many different moving parts let us know what interests you what you guys want to see more of us like creating tutorials and stuff for you guys. If you like this episode, smash that like button subscribe, hit the bell button to be notified on my latest videos and make sure to subscribe to Sean’s channel where he talks all about real estate investing and I’ll see you guys in the next one.Transcribed by https://otter.ai