All Forum Posts by: Caleb Stevens

Hey Caleb! We use Valerie Smith with Smiths Cleaners. They are Great! 603-438-3851

If your area has nextdoor.com, look there. This is a place where local people recommend local people - there are probably already lots of good recommendations on there, so check it out.

I am naturally suspicious. What kind of firework can be thrown through a window? Was it tied to a brick?

Filing an insurance claim doesn't make sense because the deductible is probably more than the cost of a replacement window. Tenants should have filed a police report, and you should have a copy. This at least provides some evidence that they didn't do it themselves. If you're comfortable that this was a random act of vandalism, then pay for the window and move on.

Hey @Caleb Stevens! I sent you over a message... but to answer your question. This is definitely a hot topic.

1. For my new investments. Yes, I have found them to be good deals so far. We just refinanced on one with very high-interest rates which was a very hard pill to swallow, but there is room on the bone still for projections and people are still traveling. We have seen a slight slow down in bookings and occupancies which lower projections but that still doesn't cause me for concern.
2. For long-term STR host, I think the same still applies. In fact, they are typically positioned better than others due to having lower interest rates and having recovered some of their upfront costs.

Now the interest rates aren't as much of a concern due to you being able to calculate them into the deal. You can analyze a property with high-interest rates and if it still cash flows with great numbers, then grab it! because it's going to do even better if interest rates go down. Also if we are heading into a recession which should be official here in the next 1-2 months I believe (going by the definition of having the GDP falling for 2 consecutive quarters.) history tells us that interest rates will be lowered as to combat recession. Happens every one. Now to address higher gas costs and inflation. Those contributors definitely affect the travel industry. To what degree this year.. I don't know. The good thing is we can look at data going back quite a few years in certain markets and see how it affected each of those markets during a recession and even better, during a pandemic like Covid. That has given me a lot of confidence to continue to invest in STR's in certain locations because I can see the data before investing and I can plan accordingly. I hope that helps

We own a few STRs - one is a duplex- the upstairs tenant is full time and covers the whole mortgage. The downstairs airbnb is all gravy. I really like this business model- this property is in Pittsburgh, PA, near stadiums & downtown  and not too far from the universities. We also own two 30-day stays in Napa/Sonoma counties and both of those are working out well thus far. 

I like to- and I think it is important to- create a really great airbnb experience with fun things like games, puzzles, a record player, VCR (quirky things you don't find everywhere, throwbacks) or whatever works in your market/level of rental. Mine are all smaller, modest, reasonably priced, which keeps me in a good position regardless of the economy. 

I also like smaller units to avoid the party crowd

I've experienced that people tend to scale back on their vacation plans during recessions but that can often mean a boost in vacations that are less lavish and closer to home. 

Pre-pandemic, a slight majority of my guests were international travelers. I've had one international guest this season but I'm still fully booked, just with domestic travelers instead of international travelers. Prior to this year, I had only 1 guest who was here on work and not vacation. This year, a third of my guests are here for work related activities. Pre-pandemic, I got less than 1 cancellation per season. This season, I have gotten 8 cancellations - most of them from the work related visitors. One of the cancellations happened 24 hours before checkin. Within 40 minutes it was re-booked. If I allowed one night bookings, every single night this season would have been booked. As it is, I will end up with less than 5 vacant days for the entire calendar year. 

Recessions impact my rentals but not necessarily the revenue from my rentals.

Hey @Caleb Stevens! 

@Collin Hays hit this one right on it's head! Any deal should be able to still do well in a recession or not. As for purchasing STRs, I will be purchasing in a recession or not. A great deal is a great deal either way! 

If you have any other questions don't hesitate to reach out! 

Live Free,

Josh