All Forum Posts by: Joel Oh
Joel Oh has started 15 posts and replied 187 times.
Post: One thing I learned from running Airbnb
- Posts 188
- Votes 111
Quote from @John Underwood:
Quote from @Joel Oh:
Quote from @John Underwood:
Quote from @Joel Oh:
Quote from @John Underwood:
Quote from @Joel Oh:
I had months like this (STR dream)
Also had months like this (my cleaner's STR dream)
and also months like this (where is my guest?)
but after all that, I learned that you don't need to stress about your bookings but just go with the flow.
In the end, the money comes from the number of units not individual performance.
Even it makes $100 per month, if you have 100 of them, it is $10,000 per month.
Reviews are just reviews, tax is just tax. No stress and freedom = A good life
Hope y'all enjoy your life!
Your running an STR that is listed on Airbnb.
$100 per month I'd not worth the effort to me. I would just have LTR houses that I cash flow over $1000 each after expenses because I bought them cheap with cash These are very close to passive, even self managed, because I have systems in place.
STRs also run the risk of the rules being changed and areas becoming saturated. So I would want way more than $100 per month given the extra risk.
Unlike the popular opinion, I believe STR is a lot easier than LTR management. I'm a professional property manager, so I managed close to 2000 residents in LTR. You don't need to worry about eviction, uncollected funds, massive property damage, insurance hassle, annual renewal, death and crime, rent control, fair housing… that you typically need to handle in LTR. Airbnb customer service rocks and I am a huge fan of Aircover!
Also cash return is not comparable haha
If your only getting $100 per month from a STR then I'd prefer a LTR.
I self manage and I have alot of LTR'S. I have systems in place to where they are much less work
STR's have constant turnover and is a customer service job and must be treated as such.
I can easily cashflow 1k a month on a LTR the way I buy them with much less effort than a STR.
I know some people are killing it with their STR, some are scrapeing buy. All is well till the local authorities prohibit their STR or a bunch of people start STR'S in your location. I see this happen all the time.
lI love my true vacation rentals, but the bulk of my wealth is in LTR houses for the reasons mentioned above.
Yeah, that is STR's risk factor. I also see a lot of LTRs go on foreclosure or short sales after the owner got sued for numerous different things haha. I definitely see these things a lot more because I am the person all these troubled owners come for help. All it takes is one fire with a renter without insurance or one methhead deciding to use your house for illegal childcare or refugee camp. A lot of states are pushing mandate government housing programs and evictions are getting harder and harder. My last one only took 105 days to evict and I had to holdover her belongings at the unit for 30 days 😄
Luckily I live in a red state. I can file an eviction for $40 and have someone out in about 3 weeks when needed.
Post: One thing I learned from running Airbnb
- Posts 188
- Votes 111
Quote from @John Underwood:
Quote from @Joel Oh:
Quote from @John Underwood:
Quote from @Joel Oh:
I had months like this (STR dream)
Also had months like this (my cleaner's STR dream)
and also months like this (where is my guest?)
but after all that, I learned that you don't need to stress about your bookings but just go with the flow.
In the end, the money comes from the number of units not individual performance.
Even it makes $100 per month, if you have 100 of them, it is $10,000 per month.
Reviews are just reviews, tax is just tax. No stress and freedom = A good life
Hope y'all enjoy your life!
Your running an STR that is listed on Airbnb.
$100 per month I'd not worth the effort to me. I would just have LTR houses that I cash flow over $1000 each after expenses because I bought them cheap with cash These are very close to passive, even self managed, because I have systems in place.
STRs also run the risk of the rules being changed and areas becoming saturated. So I would want way more than $100 per month given the extra risk.
Unlike the popular opinion, I believe STR is a lot easier than LTR management. I'm a professional property manager, so I managed close to 2000 residents in LTR. You don't need to worry about eviction, uncollected funds, massive property damage, insurance hassle, annual renewal, death and crime, rent control, fair housing… that you typically need to handle in LTR. Airbnb customer service rocks and I am a huge fan of Aircover!
Also cash return is not comparable haha
If your only getting $100 per month from a STR then I'd prefer a LTR.
I self manage and I have alot of LTR'S. I have systems in place to where they are much less work
STR's have constant turnover and is a customer service job and must be treated as such.
I can easily cashflow 1k a month on a LTR the way I buy them with much less effort than a STR.
I know some people are killing it with their STR, some are scrapeing buy. All is well till the local authorities prohibit their STR or a bunch of people start STR'S in your location. I see this happen all the time.
lI love my true vacation rentals, but the bulk of my wealth is in LTR houses for the reasons mentioned above.
Yeah, that is STR's risk factor. I also see a lot of LTRs go on foreclosure or short sales after the owner got sued for numerous different things haha. I definitely see these things a lot more because I am the person all these troubled owners come for help. All it takes is one fire with a renter without insurance or one methhead deciding to use your house for illegal childcare or refugee camp. A lot of states are pushing mandate government housing programs and evictions are getting harder and harder. My last one only took 105 days to evict and I had to holdover her belongings at the unit for 30 days 😄
Post: One thing I learned from running Airbnb
- Posts 188
- Votes 111
Quote from @Nathan M kiefer:
Quote from @Joel Oh:
Quote from @John Underwood:
Quote from @Joel Oh:
I had months like this (STR dream)
Also had months like this (my cleaner's STR dream)
and also months like this (where is my guest?)
but after all that, I learned that you don't need to stress about your bookings but just go with the flow.
In the end, the money comes from the number of units not individual performance.
Even it makes $100 per month, if you have 100 of them, it is $10,000 per month.
Reviews are just reviews, tax is just tax. No stress and freedom = A good life
Hope y'all enjoy your life!
Your running an STR that is listed on Airbnb.
$100 per month I'd not worth the effort to me. I would just have LTR houses that I cash flow over $1000 each after expenses because I bought them cheap with cash These are very close to passive, even self managed, because I have systems in place.
STRs also run the risk of the rules being changed and areas becoming saturated. So I would want way more than $100 per month given the extra risk.
Unlike the popular opinion, I believe STR is a lot easier than LTR management. I'm a professional property manager, so I managed close to 2000 residents in LTR. You don't need to worry about eviction, uncollected funds, massive property damage, insurance hassle, annual renewal, death and crime, rent control, fair housing… that you typically need to handle in LTR. Airbnb customer service rocks and I am a huge fan of Aircover!
Also cash return is not comparable haha
Respectfully disagree. We own 18ltr and 2 high end str. All about what you pay and area and gross rent v. Net rent.
ltr is good consistent, ours are upper end ltrs and str I have found that in my area I enjoy the off-season almost as much as the busy season- where you can enjoy the payday you got as well as stay there a bit and fix up a few things.
Post: One thing I learned from running Airbnb
- Posts 188
- Votes 111
Quote from @Nathan M kiefer:
Quote from @Joel Oh:
Quote from @Nathan M kiefer:
Quote from @Joel Oh:
I had months like this (STR dream)
Also had months like this (my cleaner's STR dream)
and also months like this (where is my guest?)
but after all that, I learned that you don't need to stress about your bookings but just go with the flow.
In the end, the money comes from the number of units not individual performance.
Even it makes $100 per month, if you have 100 of them, it is $10,000 per month.
Reviews are just reviews, tax is just tax. No stress and freedom = A good life
Hope y'all enjoy your life!
Eight days and your getting $1268 from Airbnb 😳.
where are you renting to(area)and why are your rates so low, is this a hotel?
way too cheap
It is a relative to the market! All my properties generate 30k+ in revenue and all these houses are under 300k. So cash on cash returns are easily 50%+ i believe this is what Airbnb strategy used to be before pandemic inflation hit. I’m an old-school believer and it has been working for me haha.
To each his own, not knocking it because obviously it works for you.
our str's do about 70-80k a piece and we paid 295 and 375k respectively.
hey if it's working for you don't change it but those numbers don't work for me.
are you talking 30k gross or net?
It is net! The one I posted makes 50-60k income and the house was 150k plus 40k rehab. My expenses are pretty low as I already have a team for LTR and I self-manage. My most expensive unit was 300k and it generates 70-80k. I say the number is rocking and I love it haha
Post: One thing I learned from running Airbnb
- Posts 188
- Votes 111
Quote from @John Underwood:
Quote from @Joel Oh:
I had months like this (STR dream)
Also had months like this (my cleaner's STR dream)
and also months like this (where is my guest?)
but after all that, I learned that you don't need to stress about your bookings but just go with the flow.
In the end, the money comes from the number of units not individual performance.
Even it makes $100 per month, if you have 100 of them, it is $10,000 per month.
Reviews are just reviews, tax is just tax. No stress and freedom = A good life
Hope y'all enjoy your life!
Your running an STR that is listed on Airbnb.
$100 per month I'd not worth the effort to me. I would just have LTR houses that I cash flow over $1000 each after expenses because I bought them cheap with cash These are very close to passive, even self managed, because I have systems in place.
STRs also run the risk of the rules being changed and areas becoming saturated. So I would want way more than $100 per month given the extra risk.
Unlike the popular opinion, I believe STR is a lot easier than LTR management. I'm a professional property manager, so I managed close to 2000 residents in LTR. You don't need to worry about eviction, uncollected funds, massive property damage, insurance hassle, annual renewal, death and crime, rent control, fair housing… that you typically need to handle in LTR. Airbnb customer service rocks and I am a huge fan of Aircover!
Also cash return is not comparable haha
Post: One thing I learned from running Airbnb
- Posts 188
- Votes 111
Quote from @Nathan M kiefer:
Quote from @Joel Oh:
I had months like this (STR dream)
Also had months like this (my cleaner's STR dream)
and also months like this (where is my guest?)
but after all that, I learned that you don't need to stress about your bookings but just go with the flow.
In the end, the money comes from the number of units not individual performance.
Even it makes $100 per month, if you have 100 of them, it is $10,000 per month.
Reviews are just reviews, tax is just tax. No stress and freedom = A good life
Hope y'all enjoy your life!
Eight days and your getting $1268 from Airbnb 😳.
where are you renting to(area)and why are your rates so low, is this a hotel?
way too cheap
It is a relative to the market! All my properties generate 30k+ in revenue and all these houses are under 300k. So cash on cash returns are easily 50%+ i believe this is what Airbnb strategy used to be before pandemic inflation hit. I’m an old-school believer and it has been working for me haha.
Post: One thing I learned from running Airbnb
- Posts 188
- Votes 111
I had months like this (STR dream)
Also had months like this (my cleaner's STR dream)
and also months like this (where is my guest?)
but after all that, I learned that you don't need to stress about your bookings but just go with the flow.
In the end, the money comes from the number of units not individual performance.
Even it makes $100 per month, if you have 100 of them, it is $10,000 per month.
Reviews are just reviews, tax is just tax. No stress and freedom = A good life
Hope y'all enjoy your life!
Post: Best Hot tub for STR?
- Posts 188
- Votes 111
I think it all goes down to the price of your rental and how many guests will use it. If you are aiming for a luxury STR, hot tub is a great deal as people tend to take a better care of your property. The repair difficulty really depends on your / handyman's skill set. Some may say it is easy but they may say fixing a fridge or furnace is also easy for them. (They are honestly not too hard but of course it is difficult for many many regular people)
I say just don't buy the used one as it always carry potential mold/breaking down issue. This is one of those items that goes on the sale frequently! Good luck and have fun!
Post: I am hearing STR doesn't count toward REPS status.
- Posts 188
- Votes 111
Quote from @Kelly O'Keefe:
Hi @Joel Oh
To be considered a Real Estate Professional you need to meet the threshold of 750 hours annually AND more than half your time. Therefore if you are contributing 40 hours a week at your W2 job you would need to be able to substantiate 41 hours a week in real estate. This is why it is so hard for W2 earners to claim.
You can qualify for material participation for short term and long term properties. Here are the requirements:
- You participated in the activity for more than 500 hours. OR
- Your participation was substantially all the participation in the activity of all individuals for the tax year, including the participation of individuals who didn’t own any interest in the activity. OR
- You participated in the activity for more than 100 hours during the tax year, and you participated at least as much as any other individual (including individuals who didn’t own any interest in the activity) for the year.
For longterm rental the maximum loss you can take is capped at 25k a year, and this amount begins to be phased our between 100k in W2 income and caps at 150k in income. If you are a Real Estate Professional this cap does not apply and hence why it is such a powerful status for tax planning.
As @John Underwood said, Schedule C income categorized by "substantial services" such as turn down services, meals prepared, or special activities provided. If it is a turn key property managed by a property manager or you have limited interaction with your guests it would most likely be considered passive income and filed on a Schedule E
Yes! One day I will be able to quit my W2 job and get the RE status! That is the goal!!
Post: I am hearing STR doesn't count toward REPS status.
- Posts 188
- Votes 111
Quote from @Michael Baum:
@Karen Chow, it isn't a loophole. It is just the law.
I agree!!! People make it sound very scammy by using the wrong lingo. It isn't that easy to pull it out just like any other tax code! We already get enough bad reps from all these stupid media and politicians who never made hard-working money in their lives. Gotta start from our end!