All Forum Posts by: Jon Martin

@Richard Elvin that absolutely is helpful and a good way to look at it. You only know who you are attracting, but it's tougher to know who is being turned away. At some point I will probably send a pack n play, booster seat, and some other baby items out there whether I make this change or not, which I most likely will, it's more of a matter of when. 

Even getting more pairs of couples or non-partner travelers would be a win. 

Thanks @Michael Baum yes I keep a close eye on nearby comps but given the transitional nature of the area there is a lot of variability and noise between them so it's hard to see a clear pattern. Some are on streets a few blocks over where flips and new construction are on otherwise rough looking streets, and this is reflected in some of their reviews (including the comp I mentioned), whereas 1-2 blocks in the other direction and you are in fully gentrified hipster land.  I'm in between in the DMZ lol. 

Part of me is wondering if the other place having more reviews and superhost status is helping them stay occupied more so maybe they are simply 3-6 months ahead of me progress wise. That said, with all other things being equal I agree with your last sentence and it would obviously be a better experience for more guests. 

Will see how my occupancy pans out through summer, but June is at 60% overall and has been booked solid through the 19th so things are looking good! 

Thanks @John Carbone but I don't think that my place fits the avatar of what you mentioned above where I would agree that 1 bathroom is less of an issue. I get mostly millennial and gen-x'ers, often traveling in pairs of couples, and very few kids. Plus I am not in a true "vacation" destination, and there's no room for an arcade anyway. I seem to get a lot of business travelers and people coming for concerts or weekend partying. I could see whoever is in the other bedroom (which is actually larger and has a fireplace; 40s construction lol) not being excited about trekking through the living room, kitchen and laundry room every time they need the bathroom. I am very clear about this in the listing and provide bathrobes, but this could be turning some potential guests away. 

My thinking is that the 2nd bathroom would make it appealing to pairs of singles/couples who would each have their own master suite. Would also allow for a stronger MTR pivot or low-season strategy with the medical facilities (1 mile to a trauma level 2, 2.5 to a level 1), universities, and corporate headquarters in the area. Whether it would result in a noticeable revenue and occupancy is the mystery. 

Do your first year with what you have already. Break ground on the pool in January 2024. That way there is less for the IRS to challenge you on and you hopefully qualify for 80% depreciation against your W2 income. 

If you do the shopping and set up yourself you can easily log 30-50 hours. I use a tracker on my phone and try to batch my self management duties as much as possible. Between setting door codes, guest communication, reviews, and paying vendors it is not hard to average 15-20 minutes per day (~2 hours week * 50 weeks = 100 hours). 

About 3 months in with my 2/1 in Greenville SC. Occupancy and revenue has been pretty good but could be better. I realize that time on market is a factor here as I build reviews (11*5 stars), and I should qualify for superhost in July. In general I am happy with the performance and I am profitable. 

That said, there is a house around the corner that is on a less desirable street, no W/D, and not pet friendly that is booked 90%+. The rates, interior furnishing and rebab quality is similar. If anything, my place has more comfortable furnishings, a better kitchen and more character. Aside from superhost status and more reviews, the only strong differentiator of the other house itself is an extra full bath, whereas I have only 1 bath total and you have to walk through the whole house if you are in the other bedroom. 

I do have existing footprint space (roofline covered front patio) where I could add an extra full bath with minimal disruption and an excellent contractor who thinks he can do it for <$10k. Plus with bonus depreciation and the ability to force appreciation and cash out refi I am not concerned about the cost, and I could do the work during the slower winter months. 

Has anyone added a bathroom and seen it make that big of a difference? Thanks in advance!

@Scott Goulet if that's the case and there is no significant difference in occupancy, then my gut tells me that it is not a major factor that guests consider and are willing to pay a premium for. Or, there are so pools already that it is no longer a unique differentiator. 

I would do a game room over a movie theatre. I think most people are content with a decent tv in a comfy living room. 

If you find something you like on any drop shipping website, such as Overstock or Wayfair, copy/paste or drag the image of the item into a google images reverse image search. That will link you to the original vendor where the same item is often much cheaper. 

I'm tempted to bid on an Amazon pallet of returned household goods for my next property, would be curious to hear from someone who did this. 

Do an enemy analysis. Check "flexible" dates for a house with a pool to weed out the condos with shared pools. This should bring up all of the homes in your area with pools. Exclude any units that are out of your league and focus on similar comps. 

What are they charging per night? How full is their calendar? Should give you an idea as to whether it's worth it or not. 

The problem with going from STR to LTR is that you will spend a lot of time and money on furnishings for an STR, whereas an LTR does not require anything at all. Unless you really go cheap with used and bargain items, the furnishings can easily eat up 1-2 years of the increased profit that an STR does over LTR.

If you convert back to LTR, what are you going to do with all of that stuff? Nothing wrong with having LTR as a backup but I wouldn't plan for that from the start. 

 Maybe @Jim Mueller place is more likely to book because the nightly rate is more competitive as a 2/2. Doesn't require pooling together 1-2 more couples or another family to make it economical. Seems to be a good downturn or inflation hedge strategy against larger properties that are more leveraged and require higher occupancy and ADR to pay the bills. 

Just a thought, I don't invest in this market so I have no horse in this race.