All Forum Posts by: Alex S.

This is a really interesting concept to me. It just seems like we are blurring the lines of boutique hotel 12-unit hotel vs. STR. I'm not sure the motel realities (shared walls, tiny bathroom, boring rectangle shape) could demand a high enough price per night. I love the idea of buying an old motel, renovating it, and then charging higher rates...but I don't see AirBnB being the right clientele.

I have done my share of hotel stays for my W-2 job and I hate the slow check-in process, so the plan to eliminate the office and book online sounds brilliant.  You might have to train guests...because motel guests typically expect to walk up to the counter and buy a room.  I'd love to hear how it goes!

@Robert Gilstrap I am literally saving your post and using it to develop my case against the first city council to come after my right to STR. Very well said.

I reject the premise that STRs make neighbors "worse-off" than a LTR. I think people just like to complain and we all tend to be motivated by fear if we aren't careful. Axe murderers, drug dealers, and party animals may use an AirBnB for a night, but they also might move-in to the LTR across the street for a YEAR. In fact, they did at a 4-plex I just bought. A flipper rehabbed a quaint little home across the street and made it an LTR. I've seen no less than 20 people, children, various pets, and a dozen cars (1 being a 1980's toyota corrolla with 4 shirtless middle-age men packed into it and no catalytic convertor installed). I have nothing against being shirtless or tattoos, but one of these guys had short ripped jean shorts with tattoos on his upper backs of his thighs. I mean, that crossed a line somewhere for me. They put a plastic kitchen table in the front yard. I could go on, but if the city council wants to shut down my STR full of nurses, military families, professors, grandparents visiting, etc...well, I'm calling up my thigh tat friend and offering him a furnished LTR. We'll see which guests the neighbors prefer.

Brandon Turner created a month-long stay website for his 3 properties in Maui: https://www.amonthinmaui.com/

You need to call the county immediately and get the truth data on STR permits. Explain your situation and ask them to transfer the permit, or write you a new permit because you bought the place before the ordinance was created.

People speak to their guests?

Probably true.

Did you know that Hospitable.com (formerly SmartBnB) has a feature called "stealth mode" where it will hide your listing during normal government business hours?  It will display your listing in the evenings when most bookings are made and the city planning division isn't snooping.  Now you know!

I thought only non-vacation STR markets could be regulated! Sorry...you'll hear that a lot, but you are living proof that all markets are subject to regulation impacting STRs. Always good to have a plan B for STR investing.

For your situation:

1. Try 30 day rentals...might be good enough to pay the bills for awhile. Though it'll be less money than STR.

     1a. Start a website - aMonthinTahoe.com and try to pull off a @Brandon Turner

2. Definitely still apply for a new permit and say that you are grandfathered because you purchased the property as an STR. Don't just give up. I'd move fast.

3. Pull together some friends and treat it like a time-share.  They pay $XXX per person per ski season and they get 3 weeks of access

4. Wait a few months until it appreciates another $100K and sell.

I can't imagine there is all that much liability risk here.  Definitely not for drywall.

Pulling a permit to replace a sheet of drywall is the most absurd thing I've ever heard.  I would absolutely not do that.

I have pulled permits for major remodels, but never repairs.

I have been doing my own bookkeeping and taxes up to this point.  That means, I have physical receipts in a folder and it is a fun game where I have to do my taxes before the ink fades off of them.  However, last year took me out of my comfort zone and since I have added 5 rentals and a new state in 2021...I want to start professional bookkeeping/CPA.  I know you can manage STRs relatively passively, but I don't have systems in place to do it from the federal penitentiary.  I heard their internet sucks.

I've read people's opinions on schedule E vs. C and stuff, but I'm wondering if there is a bookkeeping/tax prep software that is best for STRs?  What software do you use and how much does it cost?

I've read on this forum from CPAs that suggest quickbooks is only worth it if you have the skills to use it (set up classes).  Is that true?

@Account Closed Can you explain the "why?"  AirBnB tends to attract folks looking for something bigger and/or more amenities than a hotel.  Do you think you'd make more returns listing it on AirBnB and paying their cut?

My question is similar to @Kenton LeVay.  Why not just get a personal loan from a bank?  I don't know much about SoFi or Home Depot loans...but I would imagine they aren't cheap loans.