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What you’ll learn in just 17 minutes from today’s episode:
Learn how to operate a vacation rental property to maximize revenue
Discover about an investment strategy that doesn’t require much of a capital investment, with profitable cash flow returns
Le...
What you’ll learn in just 17 minutes from today’s episode:
Resources/Links:
Summary:
Erica Muller is a vacation rental investment specialist. She has been in the real estate industry for the last 18 years and is also a mobile home park investor and portfolio owner.
In this episode, Erica shares how she got into a vacation rental when all of her other real estate investments collapsed. Left with no choice, she dabbled into it, and up to this day it continues to give her a steady amount of cash flow returns. As she evolved, she started investing in mobile home parks which has given her a good ROI.
Topics Covered:
Key Takeaways:
“A lot of the mistakes they make are that they’re coming in with the wrong mindset. They think they’re buying a house; they think they’re buying a property. But they’re actually buying a business.” – Erica Muller
“There’s a whole business model behind it, and somebody who has a full-time job and doesn’t want to rely full time on management, they’re not going to cashflow very much, because management will eat up a lot of your expenses. So, there are certain strategies that they would have to follow actually to produce high income from these types of investments.” – Erica Muller
“The biggest mistake is just having the wrong mindset and not understanding that this is a business investment, not a property investment.” – Erica Muller
“The most successful people are the ones that either they have a spouse or partner or someone that they’re working with, that has the time to dedicate to running an operating model, in terms of responding to those that inquire on Airbnb in providing that unique guest experience.” – Erica Muller
“That investor is somebody that has an extra 15 hours, 10 to 15 hours in their week, to be involved on that level, they’re very successful that way. And also, because a lot of that revenue that comes in is going directly to you since you’re procuring those guests versus going to the property manager, that’s going to take a big commission slice off of that, your ROI goes up.” – Erica Muller
“The number of properties they can realistically manage depends on how they build their management system, and how much of it they outsource.” – Erica Muller
“Analyzing the numbers and looking at the capital investment to get started to be where we wanted to be with cash flow returns on self-storage, it was a lot higher of a capital investment than it was to get into mobile homes for that same return we were looking for.” – Erica Muller
“I think the entry point to get into it for one, you don’t need as much capital to get started with mobile home parks, you can get well-performing parks.” – Erica Muller
“I don’t ever want to deal with properties I don’t own or tenants I can’t qualify to come into the park because if you’re trying to run a high-end park, you need to make sure that the tenants are background checked, screened, you don’t want pedophiles moving in, you don’t want criminals moving in.” – Erica Muller
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