All Forum Posts by: Konstantin Ginzburg

 Thanks for the advice. We were actually planning on installing ductless AC splits in the property in the near future and have gotten quotes from a contractor for those. They are on our list of property improvements in the intermediate future once we finish off some other priority renovations first. We have seen ductless units begin popping up here and there in the neighborhood so want to offer that as well to stand out from other listings. Window units are still by far the most common type in the city, at least in the areas were tourists are interested in going too. We have asked about central air but the buildings are too old and there is not space to accommodate installing ducts. 

The stainless steel appliance though is definitely something we can look into doing sooner rather than later. It didn't occur to me that this would be a noticeable issue. I appreciate that advice. 

 Sure, no problem. Here is the link. I'd be happy to listen to any advice that you have on how to edit it.

https://www.airbnb.com/rooms/6...

Here is the link to the STR:
https://www.airbnb.com/rooms/6...

The main niche that we are aiming for is for families who want to visit New Orleans but stay in a quieter/safer neighborhood instead of the French Quarter. We chose our location further uptown in the Uptown/Garden District area so our main draw is the local restaurants, historic buildings, easy access to public transportation, and very safe area. We are also near in ground zero of the Mardi Gras celebrations so were able to do incredibly well during Mardi Gras season but are hoping to increase our occupancy the rest of the year. 

 Thanks for the advice. 100% of our listings come from airBNB as well so we spent time trying to optimize that as well. I'll send the listing here so would be happy to hear any input you have on things that we could change to improve it. We are located a bit further uptown from Bourbon Street but are next to the street car line that goes to Bourbon. The primary draws of our location are the architecture, restaurants, extremely safe location, and parade routes so we tried to emphasize that as much as we could in our listing.

https://www.airbnb.com/rooms/6...

Good morning BP,
I own an STR in the New Orleans area that is listed on airBNB and VRBO. I used Pricelabs to set my nightly rates which dynamically adjusts rates on a daily basis. Might nightly rate is currently set to the bottom 40th percentile of prices for our area. I have posted links to my personal Facebook and Instagram accounts as well as actively post to tourist groups on Facebook as well advertising our property. I have also tried SEO ad placement to attract more views to my listing. I am also reaching out to travel agents who specialize in the New Orleans market and giving them commission agreements for clients they book with my property. So far, my occupancy rates are in the 5 to 10% so I am getting some success but am looking at additional ideas for how to market to get closer to our regional average of 50% occupancy. What marketing strategies have other STR investors used to increase their occupancy rates? I am very open to any and all ideas.

That's incredible that you have been so interested in this topic from such a young age! I honestly wish I had been as passionate in real estate and investing when I was 12 rather than waiting for my early 30s to jump in. You are very far ahead of the game! Soak up all the advice you can and feel free to ask any questions you have. 

@Abi Horton Awesome plan! Travel is my passion as well so I can relate. My long term goal is to have real estate passive income be able to pay for my monthly bills and travel expenses so I can spend my time traveling and only working when I want too. Feel free to reach out if you ever have any questions or are interested in learning more about the real estate market in New Orleans. 

Have you looked into finding a home warranty company that will cover the costs of those appliances such as the HVAC and water heater? One thing I have done in the past, is having the seller purchase a one year warranty for the property at closing and have been able to do several property repairs through the warranty. The only out of pocket cost for me had been the trade-call fee which was in the 100-200 range and the remaining parts and labor costs were covered by the warranty. I don't think a warranty would cover a roof but the rest of those items should fall under their scope (although you may need to wait for the appliance to actually fail before the warranty comes in and fixes it rather than proactively getting them changed out). Just make sure you have a good understanding of the scope of what your individual warranty would cover before signing up and shop around to find one that meets your needs. 

STR:
Cons: Less passive, less steady revenue, involves higher risk tolerance, may currently be facing more competition with a shifting travel market.

Pros: Higher revenue potential

LTR: Essentially the opposite of STR. An STR with a high occupancy rate will typically lead to higher monthly revenue but you might have to deal with months during a slow season where the revenue dries up. One strategy that I use is to anticipate these drop offs and place in a medium term tenant into the property until I know the season should pick back up so shifting between the two strategies on a seasonal schedule.

It's going to depend on the property and your appraisal as well as what your goals are. As many others have said, a lot of the steps between a flip and a BRRRR are very similar up to the point where you need to decide whether to sell or refinance. If you receive a favorable appraisal and you can refinance into a new mortgage while still retaining a high enough cash flow to keep you happy then a BRRR is the strategy to lean towards. If cash flow would go negative following a refinance then it will be up to you to decide whether or not you want to keep the property and accept a negative cash that you will need to supplement in the short term because your goal is long term appreciation in the area or whether you would rather regain your capital and take the immediate profits in order to put into another property. Everything will really come down to your goals, the individual property, and the options available at the time.