Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
3y
I would never hire a PM that can't routinely inspect the property and help with things without having to pay someone else for every little thing that needs to be done.
Example: Had a problem with a 4k projector and surround sound system. PM spent multiple days troubleshooting issue and ultimately we had to replace projector under warranty. He provided a decent sized loaner TV during the process. Guess how much extra we paid for all this? Nada.
This was just part of his value add of being a boots on the ground local PM.
If your PM isn't local you may as well self manage.
More of a general statement about posts regarding STR, not necessarily specific to that property. I feel like every STR related youtube video or BP post showcasing how successful a property is seems to highlight gross revenue. Personal pet peeve I guess. For all I know they are loosing money hand over fist for all the reasons you mentioned and many more.....
IYea I totally agree with you!!! I'm just the Co-Host on that property, so I don't own it. I have no idea what it netted because I don't know how much the owners paid in expenses for mortage, taxes, insurance, utilities, etc. etc.
I get 20% of the gross revenue so that's why I shared the gross #.
I'm with you though, for properties that I own, I always share the net!
Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
3y
I also co-host and do not ever go there. No need to be local. You just need a good team. I know lots of local managers who charge way higher rates and are not even half as responsive as I am.
Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
3y
I'm gonna have to side with @Sarah Kensinger on this one. The "value" that you are adding feels like a self serving marketing piece. I exchange messages, texts, and/or calls pretty much every week answering questions and helping when people think that I can be a resource. And others have done that for me as well...the community offering free help is part of what makes this amazing.
I could also post tips for self managing, long distance, short term vs. mid term, etc. that would fall under my area of expertise. The difference is that you are listed as a real estate coach and a co-host. Whether it is reality or perceived reality, you have something to sell, and this feels like an advertisement more than help or providing value.
The OGs on this thread like @Luke Carl, @John Underwood, and @Michael Baum have provided value to hundreds of folks here without pitching anything (that I have seen). That's probably a better model to follow. Block, tackle, and help individuals with specific questions.
As for not visiting a property - different strokes for different folks. I like to spend a night or two in each property every year. There are certain things that you won't notice until you spend a full night or two there. Guests don't communicate everything and your team doesn't stay overnight to replicate the guest experience. I may be overdoing it a little; you can certainly get by without visiting the property...it's just not my preference.
Real Estate Agent · Oklahoma City, OK · Member since 2019 · 956 posts · 600 votes
3y
@Dan Thomas if it's helpful I see people netting $150-$350 per month in my market after all expenses and debt service at 20% down and ~7.625% interest rates. Not bad on properties in great areas and ideal condition! It's a shift from what we used to see and it's lower cash on cash, but it is an option to cash flow when positioning as a long term rental here isn't providing that right now. This is on $150,000 - $230,000 properties.
The OGs on this thread like @Luke Carl, @John Underwood, and @Michael Baum have provided value to hundreds of folks here without pitching anything (that I have seen).