All Forum Posts by: Collin Hays

Long term, your property is going to up in value; likely way up. Rents are going to go up too, perhaps significantly so.  A 15-month measuring stick isn't adequate. In the short term, prices fluctuate like the winds:  Up one day, down the next. Real estate investing works out best when treated with a crockpot approach instead of microwave.  We live in a microwave world, where everyone expects their investment to soar overnight. It usually doesn't work that way.

Couldn't disagree more.

I am the owner of multiple businesses, and I've never had one "make money day 1".  
My first STR, purchased in 2005, was negative cash flow for 4 years. It is now paid for, is worth triple my purchase price, and provides about $60K a year in rents.

So I had to pump another $60K in it over a few years. In the scheme of things, that's sofa change.

I wouldn't consider buying real estate if I didn't have $160K cash in hand. That would be the minimum entry fee I would think. If you're having to go out and "raise" your entry fee, you might want to think about other investments until your cash grows.

While trying to figure out a way to boost revenue is good, I think you are doing pretty darn well if you are short less than $1,000 per month in the first year (or two, or three). Remember, someone else is paying off a chunk of that asset. What would be the crime if you were tossing in $11K every year from now on?  It's an appreciating asset.  Look at it like you do your 401K. 

There is really no way to "vet" guests without the whole deal getting really cumbersome. Neither VRBO nor Airbnb are vetting guests, either.

The best you can do is have some internal controls, such as minimum number of nights. A property allowing one-night stays may be more prone to fraternity parties and similar. You could also charge a damage deposit, though there are pros and cons to this. Most guests are suspicious of these deposits and fear they won't get them back, so it can dampen your bookings.  

For most vacation rental areas, irresponsible people are not renting homes. In fact, I would estimate that it is mostly upper middle-class folks that have the money and wherewithal to go through the vacation rental process - prepayment of substantial monies, etc.

If you only have one property, I would just stick with Venmo, CashApp, or Paypal. Maybe a couple of them to allow for some guest flexibility.  

Looking forward to the responses on this!

Salt water anything brings with it a host of new problems. 

We had a ghost this year. Guest reported that they saw him in the mirror?  🤩

 A number of our offerings are secluded; many vacationers are looking for that experience. I recommend homing in on what MOST vacationers are looking for in a specific market and try to find properties that have natural features/amenities that are scarce.  

I once had what I referred to as the "oldest cabin in the Smokies". It was a true chestnut log cabin, circa mid 1800s, right on the Roaring Fork River in Gatlinburg. The place was cramped and primitive.  No heart shaped tubs are arcade games in this one.  Real stone fireplace, quirky kitchen, a shower you could barely turn around in. But the place was so cool. You opened the front door by unlocking it and then pulling a rope that lifted a lever inside.   Original, decorated with period antiques and rugs, an old grandfather clock, a river otter taxidermy, and a 80-year-old map of the Great Smoky Mountains above the fireplace.  Cold, drafty, and couldn't keep the mice out.

The thing rented like crazy.

1.  There are bats in the basement.

2.  There are snakes under the hot tub.

3.  There is a snake in the TV cabinet.

4.  My daughter left behind her Fuggler.

5.  We found a ***** (unmentionable) in the bathroom cabinet. It's not ours, but we left it. 

(Hmmm.  Housekeepers left it from the previous guests?) 

6.  The pool table collapsed on my husband (that's what happens when you try to move a slate pool table across the room and aren't trained to do so).

7.  My daughter has been fishing in the creek for two days and never caught any fish. Can we get a discount?

8.  The road is too steep and isn't paved all the way.  (rented a cabin on top of a mountain)

9.  We think a chipmunk crawled into our tail pipe.

10. There are too many birds chirping here.