All Forum Posts by: Alex S.

What does @Avery Carl call it..."September Scaries?"

September is a generally lower travel month, but obviously there could be huge variations to that based on region.

@Luke Carl Secretly...I am just trying to justify buying myself a hot tub to use.

None of my enemies have hot tubs. :(

@Paul Sandhu that is your best post yet.

Has anyone added a hot tub to their STR to improve occupancy during the winter and/or increase nightly rates?

I'm considering a hot tub/plunge pool combo.  If I raise my nightly rate $25, it would pay for itself in ~3yrs, assuming the higher price didn't hurt my occupancy and it didn't create tons of extra maintenance/utility bills.

What is your experience with hot tubs?

What could the owner make if they long-term rented it to someone?  How close of "family" are we talking about?

If they are expecting a cut, then this sounds like rental arbitrage to me...

@Daniella Lamis If you are more concerned about cash flow/investment than vacation spot for your own use...consider middle america.  All my STRs are in medium sized town in IL with 2 hospitals and a military base.  There are multiple chain hotels in the area and only 5-10 STRs besides mine.  The demand is enormous and the price point is low.

Regulation is a risk, so 4 of my units are on commercial zoning. Surprisingly, commercial zoning isn't that hard to find (especially for multi-use properties) and usually negates the risks of residential STR restrictions.

@Shiloh Lundahl that pool is AWESOME!  I am getting bids to put a plunge pool/hot tub combo with waterfall in the ground next summer.  I'm in Illinois, so the swim season is too short, imo, to maintain a full-size pool.  The winter sucks though, so a large hot tub is ideal.

How much does a pool like that cost?

@Don Konipol dang buddy...that is the most negative view I've ever heard.  Granted, you say a couple true things.

In Jan 2017, California passed a law that prohibits local municipalities from prohibiting ADUs (additional dwelling units).  There are a lot of details to all of that, but here is the handbook: https://www.hcd.ca.gov/policy-...

California is relatively STR friendly, ESPECIALLY if you live in the unit as your primary residence...which sounds like a great possibility for the OP.

Look around for a house that has a detached garage, basement apartment, etc. Preferably, not already operating as an STR so that you can gain the value you add by creating it. Get an FHA loan with 3.5% down and pay your mortgage with the STR. In CA, I'm guessing you'll need at least $35-40K. Look in locations that are near a university, military base, refinery, etc.

@Owen Thornton

I use rentalpropertycalculator.net

It covers most of the expenses you should be including.

Years of analysis paralysis?  You know what to do!

Wishing you the best, @Nathan Buck, it is time to get to work and have fun with it.

This is an interesting question, because it indicates a level of detail planning into the CAP X that I haven't seen before. Everyone usually just says 5% for CAP X without much else.

I'm not saying it is a bad idea to project your costs the best you can, but the number of variables for this level of detail are staggering. An HVAC is good for 15-25yrs and it'll cost $8K to replace...huge difference in assignable CAP X if it lasts 20yrs instead of 15yrs.