All Forum Posts by: Bruce Woodruff

I always put my rentals and flips into an LLC. In retrospect, I think that was unnecessary. Just get top notch insurance coverage and you'll be fine. I never saw any significant tax savings from an LLC. I just did it on the advice of lawyers to add extra protection (alleged). These lawyers had never done this themselves mind you, it was just textbook advice for them.....

Don't give the State of CA any more money, keep it yourself.

Check with the local municipality about permits needed or maybe you can do it without. You may be ok. Remember the old contractor saying - "better to ask forgiveness than permission". I don't know anyone doing STRs that has an STR permit. Just my .02....

Re the kitchen....don't feel like you have to do a full kitchen right out of the gate. Our neighbor has a hugely successful and long running cabin 2BR/1BA, and just has a small apartment size fridge, little microwave, toaster oven and a hotplate thingy. No one cares. Of course he fully discloses the lack of a 'proper' kitchen in his listing. Most STR guests eat out in my experience.

Why add complications and potential liability to a good situation? Not worth it. I see no reason to do this unless you just want to. 

If your place is nice and well-located, people will flock to it anyway. Let them find their own wheels......

Not working people but not vacationers either. One of our places is close to a training facility that gives us a pretty steady clientle. Perfect guests...they're hardly ever here, come home tired and go to bed. Leave the place spotless. :-)

Yes, SFHs.....I would never live or buy in an HOA community or building. Don't like being told what to do.......

I wish this had been a thing 30 years ago...!

I would be reluctant to open my house, i.e. business, to someone I don't know, can't check out and have no insurance to cover any losses. Way too much to lose just to have a feel good moment. Better to just donate money to the cause than take the risk IMO.

Now, if there were a way to run it through VRBO or AIR and then Venmo them back the money?

There's probably a way to do this, certainly not the first time this has been done.

Remove old drywall. Pack the joist bays with rockwool or similar. Install new 5/8 drywall. Fir out the ceiling with 2x2s. Another layer of drywall.

This will give you the most sound deadening without a huge cost.....

I have had to wait until escrow to see financials (at least in one case). This was on a restaurant. This might scare away some buyers, but would definitely get you the real-deal buyers. I would never show your cards until at least you have a serious letter of intent and proof of funds. You will get rid of looky-loos for sure.....

In this hot market you can afford to be picky, if your property is worth it....

We have two, both in the general Prescott area.

To answer your questions:

Occupancy Rate - Both are full as much as we want them to be. All year. Even during Covid....

Legal/Licensing Fees- Have not run into that yet

Neighbor trouble - None, we self-manage and are ON TOP of the properties.

HOA - N/A for me

Where, specifically, are you thinking about? I would say the 3 main towns to be in or around are: Prescott, Sedona and Flagstaff...in that order. There is so much to do and see within an hour or two of this area it is amazing. Of course the Grand Canyon, but also quaint little towns like Jerome. Then factor in the 2 seasons that draw people to the area: 1) Summer - people down south want to get away from the heat 2) Winter - people want to see snow and experience a real winter.

Then throw in various events like a Bluegrass Festival, Western days, Rodeos, Etc....

IMO one of the best places I've seen to operate a STR. But I'm probably prejudiced........ :-)

PM me if you want to.