All Forum Posts by: Julie McCoy

Well @Eric P. in that instance I'd just purchased the property and was in town for closing/setup, I got lucky on the timing of the sale!  So I was able to oversee the delivery personally.  However, if that hadn't been the case, I would've asked my handyman to be present for the delivery.

Go to Home Depot?  Pfft - the glory of the Internet is at your fingertips.  Make your selections, buy them online, arrange a delivery date... don't have to leave your couch (or the beach).  Main logistical thing to work out is who will let in the delivery people and make sure they don't screw it up.

You have vacant land with no utilities.  How are you going to provide electricity?  Plumbing?  Internet?  

Much is made about off-grid tiny homes.  Do you know what they actually cost and how those systems need to be maintained and if they're legal in your area?  Most municipalities are not going to allow you to have a structure that's not on permitted sewer or septic.  If you're going to put it on the grid, how much to bring those systems into your property?

Do you know the local ordinances/zoning requirements for homes?  Many require that any dwelling be a minimum of 400 square feet (larger than just about any tiny house).  The common "workaround" is for it to be considered an RV, but most municipalities will not allow an RV to be a primary dwelling, it would have to be secondary (meaning you'd need a permanent structure on the property first). 

Much is also made about the low cost of tiny homes.  So-and-so did one for $10k!  ... totally DIY, over the course of a year or so, by treasure-hunting all the things from Craigslist, garage sales, etc. etc. etc.  Is that the kind of time and effort you're willing to invest?  Do you know how much a (nice) turnkey tiny house will cost you?  Probably minimum $60k and make sure you read the fine print re: delivery charges, etc.

Start with the zoning board in your area and take it from there.

Read this forum.  There are literally hundreds of threads that discuss this in depth. 

If an area won't allow short term rentals, it doesn't matter if it's booked directly, through a property manager, AirBNB, VRBO, etc. it's still not allowed.  Always research the local laws and ordinances to make sure you're complying with them; every location is a bit different.

AirBNB does not allow you to set a minimum age BUT - in their "you have an inquiry" email they'll tell you if the person is over/under 25 (right next to saying they have verified government ID).  And I have it written into my rules that you must be at least 25 to book, and theoretically people are required to acknowledge the rules before booking (though we all know how that goes).

AirBNB does not allow you to reject someone because of their age, so if you're going to decline a booking, figure out another reason.

It's against AirBNB policy for someone who is not a member of the group to book on someone else's behalf - and it should be against your policy too, it opens up all kinds of potential issues.  

That said, I make a good deal of exceptions to the age rule... my properties are meant for couples, and there's lots of young people getting married in the area and going on honeymoons, so I'll pretty much make blanket exceptions for that.  I NEVER rent to young locals.  And occasionally I get nice articulate people who say "We were all set to book and then we saw your rule, will you make an exception?"  I'll chat with them a little bit and usually say okay (I make them give me their word they'll drink responsibly, because I don't want a mess).

I will say I made one exception to the booking-by-proxy rule, a 12-year-old girl had saved up all her money to send her parents on a little weekend getaway, and she recruited her neighbor (who was also an AirBNB Superhost) to make the reservation for her.  It was too adorable, I couldn't resist (and all went well with their stay).  

If updating the kitchen is just a matter of the appliances, that might be a lot less expensive than you think - I replaced all the kitchen appliances with stainless in one of my cabins for less than $1500.  Fridge, dishwasher, and stove.  Wait for a killer holiday sale and go for it.  

If you intend to do something more intensive like replacing cabinets and countertops, obviously that's a lot more to bite off.

I do agree that kitchens and living spaces are a big deal in terms of appeal - and since you host large groups, it's quite likely they'll do a good bit of cooking.  So I think that's the "sexiest" change... though I also agree that practically, the best thing would be adding that shower (and that would be some forced appreciation on the house, too).  

Of the things on your list, updating the bathrooms cosmetically is the least important for sure.  I'd probably knock out the kitchen first, then add that shower, and finally update the bathrooms if you really want.

LOL @Paul Sandhu

@Mel Hignell Well that's disconcerting, even though you're right, at some point it's just gonna happen.  As for what you can do, I'm afraid that's the sort of thing you're likely to need an attorney's assistance for.

@Paul Sandhu I figured that was probably the case.  Oh well.  :)  

Congratulations, I think?  LOL  (my housekeepers in the Smokies live in the second-lowest city, Newport, TN)

This is interesting information, though... I mean, seems like those low-payment towns might be really cool opportunities for one-off BRRRRs or a small run of them... though since it wouldn't be very scalable in a small town may not be worth the effort... interesting thoughts.  What's it like in Coffeyville, Paul - are there decent people who rent despite the low cost of home ownership, or are most of the people renting the type you wouldn't want as long-term tenants?

TL;DR - no you should not.  That's not nearly enough margin, and I'm sure everyone else has expounded on why rental arbitrage is not an awesome idea anyway.