All Forum Posts by: Alex S.

Your question makes me want to check my state rules (Illinois), because I've thought many times that I might as well manage other people's STRs if I have all the processes set up to manage mine anyway.

Finding a cleaning crew for 1 STR is difficult, but 5 is easy. It makes me think there is some real value to add there.

Does anyone know if you can get a 2nd home loan through an LLC with a partner? For example, start an LLC with 50/50 equity between two people. One person uses 2nd home loan mortgage to get the 10% down and favorable rates, other person manages the STR and manages.

Step 1: Call the city where you want to buy and ask to speak to the planning division.  Ask their rules for STRs.  Is 30+ days considered LTR?

Step 2: All things equal, less than 30 day stays are typically more profitable than 30 day stays, but 30 day stays are more profitable than LTR leases.  Research if your state infers tenant rights on the 30th day (some places do!)

Step 3: Open it up for 30 day minimum 1yr out.  At 3 months out, transition to 1 or 2 week minimum.  At 1 month out, make it available for a 1-2 day minimum.

Obviously general guidelines, but "it depends" is always the right answer.

The bad reviews we give to terrible guests are only to make us feel good.  They don't care and they'll use a new account next time, so you won't help future hosts.

Probably best to think less emotionally about it and get ready for the next guest.

The short-answer is that demand is lower, so rates will be lower.  That said, there is always room for creativity.  I'm in Illinois and I just talked to a fellow host last week that installed a hot tub to attract guests during the cold winter months.

I'd be interested to hear other people's creative winter occupancy ideas...

I found the same thing with USAA.  They do, however, have a partner insurance agency (American Modern Insurance) that will insure STRs.

I am using Proper on one of my properties and have found them to be a headache.  AFTER they issued my policy, they started bugging me to death about getting a certified electrician and plumber and HVAC person to certify that my house's systems were safe and done to code.  I said "no," but they required me to assure them it was all up to code.

Additionally, Proper charges a very hefty cancelation fee if you want bail and find another provider.

How about you cash-out refinance the duplex, hire a management company, and then invest the money into an index fund?

OR...sell it with a 1031 exchange and buy a higher performing property.

The stock market is fickle in the short-term (most investments are), but if this is a "next 30yrs" decisions...you are likely to see exceptional growth in either vehicle, but less taxes in real estate.

I think @Justin Anderson hit the nail on the head...AirDNA could be very valuable for comparing markets to each other, but you can expect major variances within any given single market that makes the free data less valuable.

I do love AirDNA's "Rental Demand" rating. My only question...how can I see all markets and sort them by rental demand? For example, my area is 97 out of 100 for STR demand. A saturated market near me is 55 out of 100.

If they had that feature, it would satisfy half the questions on this forum asking "where should I invest?"

I just got an appraisal back with a picture of the wrong 4-plex on it and the wrong city on the address.  Wrong bedroom count on one unit and the "comps" were 20miles away.  It was delivered 2 late on the appraisal contingency deadline.  I paid $700.

Please, for my sanity, @James Fraundorf take your role seriously and get in the game sooner rather than later!  We need you!

You probably made a mistake if you're only making 12% in TODAYs emerging/growing STR market, but I'm just saying...12% returns beat the 30yr S&P500 and that means it is a home run in my book. Returns will settle down in the STR market as the industry grows and stabilizes. Time to get in the game now!