Again … real estate stories happen because of the real estate choices each of one of us chooses to make. Cherise Selley, a top Colorado Springs Realtor, sits down to discuss two aspects of her own journey regarding real estate investing — investing in an Airbnb and paying off her primary residence.
Without scrutiny against other proposed wealth-building strategies, Cherise believes in several different financial methodologies, whether long-term or short-term, when it comes to making a prudent real estate investment. And understandably, Cherise Selley fully understands the wealth-building concepts of never fully paying off the mortgage of your primary residence in order to gain overall wealth. Yet, for this video clip, in which she transparently shares the course of her personal financial path, Cherise and her husband chose to pay off their residence in order to have more freedom to fully invest into her real estate business (Selley Group Real Estate, LLC), as well as to divert additional funds into other real estate investments (investing in an Airbnb) and philanthropic endeavors.
The basic financial strategy that they devised is a 3-part generalized structure. First, it was important for Cherise Selley to glean debt-free living, which by the way, has been a long journey of discipline and hard work and is an ongoing, present-day undertaking. Part of this approach included the full payoff of their primary residence. Second, this particular piece of the financial triangle goes back to the basics of savings, being able to accumulate enough cash reserves to cover living expenses between 6 to 12 months in case of downturn markets and/or emergencies. Third, it is critical to invest, and relevant to this video clip, this example involves one aspect of the real estate investment strategy.
Staying rooted in her personal home, Cherise wanted to invest into some aspect of life that really spurred her inner passions about what she knows very well and what she actually does practically every day. So, the obvious choice connecting these two variables was making sound choices regarding real estate investments. And for Cherise and Gordon, they wanted to make the kind of investment that fit their needs geographically (location, location, location), and that rendered an efficacious return (value) on their investment dollars, and that somehow, even though hard work is required to make their investment worthwhile, that they might obtain additional joy and contentment (soul prospering) about their chosen financial journey.
For the past 5 to 6 years, Cherise Selley has purchased and sold various properties in Destin, Florida. Just over two years ago, Cherise and her husband purchased a beautiful, 6BDR, 6BA Beach home located one and one-half blocks from Crystal Beach. Although this purchase was a dream come true for the Selleys, the reality that they might just float away with ease on the dream clouds of their beautiful property quickly dissipated. Tourism, short-term rentals, and real estate investments are an integral part of the Destin, Florida economy, and Cherise Selley had the foresight to see some advantages to making a short-term rental purchase in this very coveted beach town.
Make no mistakes about it. Whenever you might choose to purchase a short-term rental, it is essential to keep in mind that this type of investment is a business – a hospitality business to be more precise. The same business principles apply regarding upfront expenses, down payments, carrying costs, asset values, the need for professional property management, as well as expecting profitable returns during year 3 or 4 instead of immediately – just to mention a few business dynamics in play.
Investing in an Airbnb or short-term rental business can be quite profitable, yielding two to three times more than long-term rentals, but also, there are additional hassles about this type of business to seriously consider, especially if you choose to purchase a short-term rental property out of your current state in which you reside.
Cherise and Gordon took the plunge. So far, the investment is breaking even, though its future projections are quite optimistic, especially generating an additional stream of income down the road. This particular financial investment approach has squarely fit their needs. Nonetheless, it’s important for you to discuss wealth management with a certified financial planner, and if seeking general advice, especially regarding real estate matters, then please do not hesitate to give Cherise Selley a call, 719-337-9779 for professional advice.
None of us can make our futures work out perfectly. Yet, it is imperative to start planning for the days ahead, then followed by implementing your strategies so your journey of life might become more fulfilling for you and your loved ones.
Simply, thanks for watching!