All Forum Posts by: Denis Ponder

Based on what you are interested in, have you considered purchasing a primary residence that needs updating/renovating?  Nothing major, just the basic cosmetic stuff like floors, cabinets, showers, etc.  That would give you a chance to experience the home buying process, the rehab process, and get educated without getting over your ski's.  If that doesn't appeal to you, maybe a small multi family is the way to go for a househack to get you started.

Agree with others.  Try to find a small multi you can house hack for a few years until you are ready for your primary.  Or, at the very least, try to find a single family home you can slowly update/renovate over the next two years and add value.  You will set yourself up better for success down the road and your future self will thank you.

Good morning,

Our first 6 months of our studio (househack) being available on AirBnB & VRBO was very successful for us.  During that time, the minimum rate we charged was $50/night; $20 cleaning fee for short term stays (2 or less nights) and $40 cleaning fee for longer stays.  I want to play around with rates a bit to ensure I am maximizing my returns and income.  I have already adjusted the minimum rate to $60 and have still seen good activity, but I haven't messed with the cleaning fees.  I am considering adjusting the minimum rate up quarterly until I see a change in reservations/bookings activity.  Or, would it be better to increase the cleaning fee?  Or, get rid of the cleaning fee all together and charge a higher rate to "include" the minimal cleaning fee in that cost?

Our occupancy was pretty good, north of 85% if I remember correctly, but I can't seem to find that data as easily since the layout/format of the website changed a bit.  We currently use PriceLabs for dynamic pricing which I feel has been very beneficial for us.

I would like to hear your thoughts on how you think we can best monetize our short term rental.

For context, we are competing more in the hotel/motel space with our studio, not really in the vacation property niche.  It's a very quiet and private alternative to hotel rooms in the area with a good location.

Here is our listing:

https://www.airbnb.com/rooms/892662141612985989?guests=1&adults=1&s=67&unique_share_id=87e8ebac-4d8e-4702-b596-a8ccc287e2ba

Thanks for your time!

Do you have much capital? If not, be patient and build that up. From there, you can purchase the next home and rent your current house out. Most lenders give you 75% credit on the rental towards your DTI to offset the expense a bit. If you can house hack, I would go that route for sure.

I am doing what @Michael Dumler stated.  We (me, my wife, and two boys) bought a single family home with a guest studio attached to it.  We rent the studio on AirBnb/VRBO and it alone covers more than half of our mortgage.  Pretty crazy.  We clean it ourselves as well to keep an eye on it and keep costs down.  It has been great for us and allowed us to accelerate our plan.  At some point, we are considering listing both "units" on AirBnB/VRBO and moving to another single family home.

My father served in the Navy for 4 years - Can I do a joint loan with him and utilize the VA loan options? If so, what do I need to know regarding requirements in a situation like this? Can my dad, my wife, and I be on the loan but my wife and I only on the title? Thank you.

To clarify, did you buy your first property and it was your primary residence?  Or was it your first investment property?  The statement "How to buy your second investment property" implies you have a first investment property.  So just trying to make sure I understand the situation.

It depends on your goals. I would suggest a house hack, if you can. You can get another primary loan at 3.5% - 5% down, have help with the mortgage by renting the other units, or bedrooms if you want to go that route, rent out the first house, and be set. This is all assuming you have the income, reserves, capital, and DTI to support this route in addition to market rent being high enough to cover you.

@Marta Wendel

I am guessing she is referring to the resources on Bigger Pockets located here:

Learn => Resources and Media => Webinars

I think it really depends on what people mean when they say passive.  I would agree that landlording is not a completely hands off, set it and forget it type of activity.  However, I don't know if that is what everyone means when they say passive.

I try to evaluate it from a time vs money relationship.  My current W2 is active, that's my baseline.  Anything that can earn me money with a disproportionate (lower) time investment is more passive than my W2.  From there, it's about finding ways to increase that income and decrease the time investment.  My life and my earnings are getting more and more passive.  It's more of a continuum and journey.

People pay me to stay at my places and I don't have a daily list of tasks/activities I have to show up and complete for that to happen.  If most of the "work" can be done from my couch on a phone, that's pretty passive to me.

I get that some people choose to do much of the work themselves (PM, handyman, etc), and that will make it less passive.  But, to me, it's still far more passive than a 40+ hr/wk W2.

Many lottery winners have poor financial fundamentals.  If you teach your kids properly it will greatly reduce their chances of being irresponsible with money and other aspects of being a responsible adult.