All Forum Posts by: Alex S.

@Lisa Graesser I agree.  I un-installed my Nest thermostats after getting fed up with so many guests being confused and some thinking that I was secretly turning off the A/C via WiFi.  I wasn't!

I found that Nest operation is not user friendly and guests would often inadvertently set schedules for it to change temps at various times throughout the day.  I replaced it with a dumb thermostat and the 'ol "up/down arrow" works like a charm.  The cleaning crew resets the thermostat on their way out the door.

Oh yeah, I also met one CPA for lunch.  We only had 45min.  He spent 38 of those minutes quizzing me on the "wokeness" of the US military and if I thought we'd lose the next war.  I kept trying to change the subject to real estate, but no luck.

He left abruptly muttering about getting back to me about quickbooks and I never heard from him again.  He did pay for my BBQ sandwich though, so not a total loss!

I have 4 STRs and 2 LTR.  I got a quote from RealEstateCPA.com (I definitely think they know what they're doing) and it was going to be $1,750 to get me setup on quickbooks and $305/mo to handle my bookkeeping.

That was just enough to give me pause and I haven't pulled the trigger yet, but I'm outside of St Louis and haven't found a great option yet.

@Jacob Reeves

I have no idea! Every situation is so different.  I would pay the several hundred dollars to an attorney to draft up an agreement.

I have done 7 units so far and only used my own money.  I talk too much about RE investing and that has led to a number of folks asking me about investing with me.  I didn't see how I could incorporate them until more recently.  You need MONEY, HUSTLE, and KNOWLEDGE to complete a RE deal.  I had all three at first, but now that I have deployed most of my capital...I'm gonna need money to scale.  So, I'm not much help because I'm in the same boat as you.

I read "Raising Private Money" from the BP bookstore and that helped a bit with possible deal structures.

Make sure you are accounting for all expenses, taxes, maintenance, HOA, cleaning, furnishing, etc, etc, etc.

If it cash flows...it cash flows.  100% OPM is nuts.  

Why is it over-priced?  I don't understand that part.

I have asked this question on here before and @Ryan Moyer is right.  It is all over the place.

If all the money is mine, I can't imagine giving up much equity.  I'd be concerned what would happen if you buy too high and can't make it cash flow...do you pay?  Especially in your case as a newbie.  The risk seems astronomical to the cash provider.

If I were the cash provider and I believed you could do it, I would offer you compensation based on metrics.  If you knock this thing out of the park, you earn equity/cash payout/revenue split.  If you lose all my money, I pay you a low fee for your time organizing the transaction and ask you to leave me alone while I try to fix it.

I have a 4-plex that is half STR and half LTR. I inherited the LTR tenants and they provide stability while I convert the STR units.

You need to know your market and know who is bringing the demand (construction/healthcare/military/etc).  That will help you tailor the experience to your clientele.  The short answer is "yes"...it'll work.

Dumb newbie mistake: Don't hang the TV on the wall that is the headboard of the bed in the adjacent unit.  Instant noise complaint!

Very relevant question, @Sam Smith.  I was thinking the same.

Without knowing all the details, and assuming you own your primary residence...I'd consider selling it (you'll pay no taxes on the gains) and then buy a house that you can hack. Twice I've bought a primary residence where I specifically looked for a place with an extra building on the lot (carriage house, ADU, granny flat, barn, etc) that I could remodel into an STR that pays the mortgage. The first time I did it, the house had a detached garage with a ~380sq ft room above it. I paid $40K to put in a kitchenette and bathroom and it gross'd $1900/mo. That covered mortgage/taxes/insurance. The second time, I bought an 8acre estate with a house and an old run down pool house in the back yard (pool removed 30+ yrs ago). It should be finished in 2 weeks with about $45K total invested and will rent long-term for $2K/mo or STR for $2.6K/mo. That'll cover the mortgage/insurance and also increase the value of the home a lot. Obviously, you could also just buy a duplex/4plex and live in a unit...but I have 4 little kids. I wasn't willing to do that with my whole family.

Good luck!

Schlage Encode is very easy.

Not cheap!...but so easy.

We have gone back and forth on this.

When I first started hosting, we left a 12-pack in the closet for people.  All experienced hosts know, this is a mistake.  People just take the whole thing when they checkout.

I over-corrected to 1 roll.  People complained of running out of TP.

Now I leave 2-3 rolls in the cabinet in addition to one on the roll.  When I say "I"...that means the cleaning crew!