All Forum Posts by: Joe Kern
Joe Kern has started 18 posts and replied 35 times.
Post: Understanding out of state residential multi-family of 2-4 unit purchase
- NYC
- Posts 36
- Votes 14
Quote from @Jeff Roth:
Hi Karan from Connecticut-
Great question! You asked where you can purchase 2-4 unit properties for under $250,000.
There are several markets in Michigan that would offer properties in that price range with attractive places to visit with tenant demand and property appreciation.
We have excellent, local property manager partners, inspectors, and local lenders.
To Your Success!
@Jeff Roth id love to explore these MI properties you mentioned, if you wouldn't mind having a discussion?
Post: Investors in New Jersey
- NYC
- Posts 36
- Votes 14
Hi there! I live in NJ, invest out-of-state, IMO the market isn't priced for investor friendly opportunities (unless you find an amazing deal like all markets). ie Avg home price in NJ $500K + so right away forget the 1% rule, in central jersey, you could get $3K/mo in rent for a 3BR, but depends on the location, season, etc.
Interested in partnering with other NJ based investors as well either in-state or out of state.
best of luck!
Post: Property Manager Fees -AirBnB
- NYC
- Posts 36
- Votes 14
@Joseph McCrillis great response , makes sense and as you stated the profile /listing is owned by the PM. So I don't have visibility into how the payout was configured. All I can see is the gross income, expenses and that the 18% is being taken from the gross payout (which includes the cleaning fees).
Post: Short term conversion to Long term
- NYC
- Posts 36
- Votes 14
Hello All!
Seeking insight from the community on converting a STR (primarily Airbnb) to long-term rental. Considering the change as the STR numbers just aren't working, especially with the associated expenses and turnover frequency. Are there tools (i.e RentRedi) that you recommend using for LTR tenant screening, rent collection, background checks, etc? Any "gotcha's" to look out for when converting to LTR as opposed to STR?
Post: First Single Family STR
- NYC
- Posts 36
- Votes 14
Investment Info:
Single-family residence buy & hold investment.
Single family rental in manatee county Florida.
What made you interested in investing in this type of deal?
Location
How did you find this deal and how did you negotiate it?
Researched the area , contacted local team through biggerpockets
How did you finance this deal?
Second home loan , conventional
How did you add value to the deal?
New game room, backyard turf , new appliances , paint , etc
What was the outcome?
Currently active STR
Lessons learned? Challenges?
Hiring a PM is more expensive than anticipated. Always underwrite conservatively
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes
Post: Hurricane - Advice
- NYC
- Posts 36
- Votes 14
Hello All - unfortunately, hurricane milton is fast approaching the Tampa area. Aside from the obvious dangers, I’m seeking best practices and how experienced investors in this area handle hurricane damage? What is the best way to assess and submit for claims with insurance with least resistance from the insurance company ( assuming it’s not a smooth process. I’m a new investor in FL and seem to have just invested in time for a major Hurricane to hit directly :(
any advice is much appreciated!
Post: Property Manager Fees -AirBnB
- NYC
- Posts 36
- Votes 14
Quote from @Joe Kern:
Quote from @KiKi Wood:
We manage 60+ rentals in Indy. We charge around 18% for our services, and that is off of the gross revenue. We take the cleaning team fees and pay them directly to our cleaning team. We also have a ~$100/month tech fee that builds in all of the subscriptions we use for each property (Ring cameras, Minut sensors, Price Labs, etc.). I feel that what your property manager is asking is pretty fair, and a standard practice!
congrats on the 60+ properties that is quite the portfolio!
Post: Property Manager Fees -AirBnB
- NYC
- Posts 36
- Votes 14
Quote from @KiKi Wood:
We manage 60+ rentals in Indy. We charge around 18% for our services, and that is off of the gross revenue. We take the cleaning team fees and pay them directly to our cleaning team. We also have a ~$100/month tech fee that builds in all of the subscriptions we use for each property (Ring cameras, Minut sensors, Price Labs, etc.). I feel that what your property manager is asking is pretty fair, and a standard practice!
Post: Property Manager Fees -AirBnB
- NYC
- Posts 36
- Votes 14
Quote from @Tim Baldwin:
18-22% management fee is common in Florida for vacation rentals. What I question is the cleaning cost bringing your cost to 30% of the rental income...?
Hey Tim - sorry for the delayed response! Yes - cleaning cost + lawn care +pool care + county taxes all coming out of the host payout in addition to the 18% PM fee.. so quite expensive before I see any net payout
Post: Property Manager Fees -AirBnB
- NYC
- Posts 36
- Votes 14
Quote from @Joe Kern:
Hello All - just finished setting up and putting my first short term rental live on Airbnb. I just rented out most of the previous month , and agreed to pay the property manager 18% of the booking fee host payout so net of any guest service fees or occupancy taxes airbnb takes. Now - I just noticed they are taking 18% of that (total payout) which is inclusive of cleaning fee + nightly room fee (which is fine). But They are also taking the full cleaning fee as well separately …is this normal practice? I feel like now the effective rate is much higher than 18% (closer to 30% +) we agreed on… since they are taking 18% of the net total AND the cleaning fee sum. Any guidance would be helpful thanks!
Thanks all for the responses, i believe the misunderstanding is possibly on my end. I used to manage my own STR on Airbnb hence, I kept a majority of the payout. Now that I have a property manager, I heard the %18 and believed that to be the total expense without realizing the additional (cleaning fee, lawn care, state taxes, pool care), etc...so the effective rate is much larger and my net take home much less than I anticipated. It goes to show the value of effective underwriting upfront!
Thanks all,
JK