Investor · Orange County, CA · Member since 2014 · 363 posts · 408 votes
This forum has done so much for me and I felt a bit guilty this afternoon for not giving back.
Scaled to 48 Mid-Term Rentals in 2 years OH, hired a property manager and maintenance person. Quitting my job next week and moving to North Carolina to grow a portfolio there.
Investor · Wheat Ridge, CO · Member since 2021 · 35 posts · 21 votes
3y
There are a couple great podcast episodes on asset protection, the main show ep. 595, and BP Rookie ep. 105 & 106, that give a ton of great information on what LLC's can and can't do for you.
For me, I personally use an umbrella policy for my protection but did setup an LLC immediately more so for financing later on down the road. I believe you need to show consistent income for two years before you can get financing through the business. I am working towards investing full-time and leaving my W-2 behind. So, I wanted to start the 2yr clock as soon as possible. I also keep my personal funds and business funds completely seperate. The corporate veil of an LLC can get pierced very easily if funds aren't managed correctly. It may seem complicated but it really isn't if you create a business bank account and credit card. You always can add a cash infusion into your business and repay yourself of that loan. I've been told that when you start pulling out business income (money exceeding the "personal loan" you gave to your business) for personal use is when things get dicey.
I am by no means an expert, but more so relaying advice that I have recieved. Hope this helps @Charles Lambert
@Matthew Masoud what is your process for furnishing the properties? Where do you get your furniture? Any must have features or amenities in your properties? How did you scale your management- are you managing yourself or outsourcing? How are you finding your deals? What metrics do you use to find your target market? (For example you mentioned you are expanding into NC) thanks in advance. Congratulations on working so hard to get where you are!
A lot of very good questions Jack.
My VA orders all the furniture and my contractor sends me one of his employees for furnishing. I can furnish a 2 bedroom for $3.5k (including labor) and a 1 bedroom for $2.5k including labor.
Some units have more amenities than others depending on the building but we offer soap, conditioner, razors, ect. We are going for a hotel-level experience in an apartment.
I scaled my management with systems and a VA that can handle a decent chunk of the management but many things still require my attention. I'm in the process of hiring someone on the ground that can work with the VA and do it all.
I'm looking for markets with over run hotels and large business growth brining in Mid-Term labor.
@Matthew Masoud what is your process for furnishing the properties? Where do you get your furniture? Any must have features or amenities in your properties? How did you scale your management- are you managing yourself or outsourcing? How are you finding your deals? What metrics do you use to find your target market? (For example you mentioned you are expanding into NC) thanks in advance. Congratulations on working so hard to get where you are!
A lot of very good questions Jack.
My VA orders all the furniture and my contractor sends me one of his employees for furnishing. I can furnish a 2 bedroom for $3.5k (including labor) and a 1 bedroom for $2.5k including labor.
Some units have more amenities than others depending on the building but we offer soap, conditioner, razors, ect. We are going for a hotel-level experience in an apartment.
I scaled my management with systems and a VA that can handle a decent chunk of the management but many things still require my attention. I'm in the process of hiring someone on the ground that can work with the VA and do it all.
I'm looking for markets with over run hotels and large business growth brining in Mid-Term labor.
You provide razors for MTRs? Sounds pricey!
We purchase in bulk and only add one female and one male razor. at $0.50/razor it only adds $1 per reservation in costs.
1) Which property management software program do you use?
2) I want to turn one of my apartment units into a MTR. That unit not licensed as an STR. My question is do I only rent in full month increments to avoid have vacancies for 29 days or less? The rental requests that I am seeing on Furnished Finder start and end at various times in a month. Do your MTR have a lot of vacant days and that is why the rent rate is generally double the LTR rate?
3) How do you manage having the same unit listed for rent on multiple platforms? Is there a program that will manage a Master Calendar?
Investor · Orange County, CA · Member since 2014 · 363 posts · 408 votes
3y
1. I use a program called Hostaway.
2. I take mid-term rentals and fill the gaps with short term rentals. If i have two long reservations and a gap in the middle, I'll drop the price for those dates and get them rented.
3. See #1 Hostaway does it all. They're are many of them like guestly and hospitable. They are built for short term property but you can use them for mid-term as well.
Lender · Houston, TX · Member since 2023 · 235 posts · 255 votes
3y
@Matthew Masoud Interested in MTR's. Its been getting a lot of attention. What's the best way to start? What sites are you using to forecast rates/occupancy?
@Matthew Masoud Interested in MTR's. Its been getting a lot of attention. What's the best way to start? What sites are you using to forecast rates/occupancy?
Best way to start would probably be converting any existing short term or long term rentals to Mid-Term rentals. See what kind of demand your market has. I use Furnish Finder and Airbnb monthly search in my area to get an idea of what rates are.
Las Vegas, NV · Member since 2018 · 3 posts · 3 votes
3y
Hi Matthew! Congrats on all your success! I hope to be in your position one day. Rookie here and trying to pick a potential market. I am familiar with using FF stats to get a general idea of demand in an area. However, I'm wondering if there are any signs of an oversaturated market that I should look out for. For example, Cleveland, OH seems to still have demand but, when I look up available units, there are over 200 listings available to rent as of today! Is this a red flag? Thank you so much!
Investor · Orange County, CA · Member since 2014 · 363 posts · 408 votes
3y
First red flag is any area that has restrictions on STR. all those people will be converting to MTR.
Second I'd look at the rentals in the market you considering. Look specifically at the kind of property you want to own. For example a 3/1 house. How far out booked are they? Once you narrow down a market you can even narrow it down by neighborhood.
If you're seeing a lot of wide-open calendars, I'd stay away.