All Forum Posts by: Alex S.

STR pros-

I read the book Optimize Your BnB and he recommends putting Uber/Lyft referral codes in your guest info.  You'll just passively rack up Uber credit when they use your code.  Unfortunately, Uber doesn't offer referral codes any more (maybe they'll be profitable one day!)

Are there any referrals codes or companies that offer referral perks that would be valuable to an AirBnB host?  What do y'all use?

In general...yes.

I am wondering how much longer everyone is going to keep saying that vacation hot spots aren't likely to be regulated...it just isn't true.

@Ward Dement's example of the Tampa area, Park City UT is heavily regulated, Colorado ski towns are fighting back against STRs in a big way, and the list goes on.  Those are all vacation spots.

STR grew too big too fast for those communities and they have way too many AirBnBs and not enough SFHs. Granted, the vacation hot spots don't want to totally outlaw STRs, but they could make it a low return business model...especially at current prices.

Also, for most communities across America (non-vacation) there is a growing subset of the population that would rather stay in an STR than a hotel. My area has thousands of hotel rooms within 5 miles. There are probably 10-12 STRs in that same radius. Even if the hotels return to full strength, it stands to reason that at least 10-12 of those thousands of guests would rather stay at one of my places.

@Ben Cohen GC father definitely helps!

Good luck!

I'm not seeing how this is a great investment...tho I don't have all the numbers.

Can you sell the house while you still have a loan on the pool?  If not, would you have cash to pay off the pool before you could sell the house?

Unless you are a contractor, those prices seem low to me.  Everything always costs more than you think.  A mid-range Jacuzzi is half of that $20K budget, but doesn't include any patio concrete/stones, plumbing, electric, tiki hut lumber, and LABOR.  I'd be super impressed if you pulled that off for under $20K.

I agree with @John Underwood...just try it without the pool first and see how it goes.  You could even do a test run before you move out.  Open it up for a month 6 months away and plan to stay with a friend.  Just see how you do before you sink $100K into a nice pool and surround area.

Welcome!

I was also looking into Host Financial.  Their rates are significantly higher, but I could see their value in certain limited scenarios.  

An example:

I bought a "turn-key" 4-plex that was being rented long-term for below market rates. It was in good condition, but nothing special and definitely not STR-quality. I put about $4,500 into each unit and turned them into STRs. It now makes double the income as before, but for conventional financing (based on comps)...it is worth pretty much the same that I paid for it. An appraisal based on the income it produces is about double (~$300K more).

I've never exercised this option, but my main concern is this: I now have $560K of debt on a property that is only worth $380K by normal (non-STR) metrics. That should give you pause as an investor.

@Levi Bennett The casino anecdote reminds me of a friend in Texas that bought an RV park along a highway when she caught wind of a pipeline being constructed near there in rural West TX.  She 5x'd the RV revenue when the pipeline workers arrived and sold when the pipeline was finished a couple years later.  Your scenario is even better, because there'd be no need to sell at the end since the casino should bring more customers.

Great stuff!

Is there a hotel in town? If "yes"...there is a market for STR.

That said...consider how much $$$ you have to invest. Might be better to put it all into 1 x $800K deal, then spread it amongst 8 x $100K houses. Risk increases somewhat, but headache decreases significantly. CoC returns probably similar.

As long as you weren't planning to use it yourself to ski Crested Butte...I'd sell.  90 days isn't tenable and 30+ day rentals will demand a far lower rate.

Take that money as a huge win and find a new property!