All Forum Posts by: Luke Doyle

Quote from @Gerald Pitts:

Go for it. I also suggest getting good at price and listing optimization, learning what the competition is not doing, standing out. As an owner if I turn this over to someone for a percentage, I want to know they are going to make at least the revenue I'm making and ideally more. I know the podcast Short term rental secrets goes into co-hosting. There's probably entire podcasts devoted to it as well. Good luck. 

Awesome! This is great advice I appreciate it!

Quote from @James Neal:

I don’t think there’s *no* value in what you’re thinking of providing, but I use a local manager so I have hands-off management PLUS boots on the ground. 

And do you mind if I ask what kind of cut they’re taking? It might just be much more expensive up here in Canada. 

I thought of my service as more of a lower tier offer. 

Quote from @Bruce Woodruff:

Not to burst your bubble, but I just don't see the value. I can do all that very easily myself, right? I actually do and it's just not that difficult.

Ya, I wasn’t really thinking there are too many people on this website that would be interested in this. But there must be people that have started Airbnb’s or own airbnbs that would love to off load the workload but just don’t want to lose 20-25%. I thought 10-15% might tip the people that are kind of indifferent to self managing. 

Sorry it’s taking me so long to reply. I’m tree planting out of cell service right now. I’ll try and go through and reply to all the responses now.

Hey, 

I wanted to reach out to see if anyone is doing this. I did some googling and found some cohost services but they all involve a high commission, 20%+! And more involvement than I am imaging.

I was thinking about offering out a service where I only charge between 10-15% to run an Airbnb remotely. I won’t be there to complete the everyday tasks but I Will cover all the communications with the guests, handy people, trades people, cleaners and so on. I will have a “folder” for each property with detailed instructions for everything, maps of the place, photos and video of the property that I can refer to when questions arise.

I would only start offering around my Airbnb, and then maybe slowly expand. 

To start If I could manage 4 Airbnb’s similar to mine they would gross $70k approx. if I charged 12% that would be $8400 per property per year. Or $33600 a year. Doesn’t sound too bad to me. 

Obviously I’m just spitballing here and please don’t tear me apart if this is already being done everywhere or if it’s not because it’s a terrible idea but let me know what you think. I just wanted to throw it out there before I write up a business plan and then find the glaringly obvious hole in the plan. Figured this community would have a keen eye for holes in plans haha 

thanks!

Hey, 

I wanted to reach out to see if anyone is doing this. I did some googling and found some cohost services but they all involve a high commission, 20%+! And more involvement than I am imaging.

I was thinking about offering out a service where I only charge between 10-15% to run an Airbnb remotely. I won’t be there to complete the everyday tasks but I Will cover all the communications with the guests, handy people, trades people, cleaners and so on. I will have a “folder” for each property with detailed instructions for everything, maps of the place, photos and video of the property that I can refer to when questions arise.

I would only start offering around my Airbnb, and then maybe slowly expand. 

To start If I could manage 4 Airbnb’s similar to mine they would gross $70k approx. if I charged 12% that would be $8400 per property per year. Or $33600 a year. Doesn’t sound too bad to me. 

Obviously I’m just spitballing here and please don’t tear me apart if this is already being done everywhere or if it’s not because it’s a terrible idea but let me know what you think. I just wanted to throw it out there before I write up a business plan and then find the glaringly obvious hole in the plan. Figured this community would have a keen eye for holes in plans haha 

thanks!

Quote from @Taylor Dasch:

I am not familiar with BC to be honest. However, the glaring issue that I see would be making the monthly payments with a 1 year mortgage, unless you are talking about an ARM which would be fixed for one year possibly? Or maybe a 203k loan? I am probably misunderstanding but if you can live in a house that you are going to rent after fixing it up, I believe that is a great idea. It's a great way to get started and you can leverage the equity to keep doing that. I have been calling it the nomad method, (I believe an author on bigger pockets called it that ) and it is a great way to start investing. I am doing this as well. I would just make sure that your payment is amortized over 30 years. Good luck!!

I had to google an ARM but I think it would be similar. It would be a 1 year term for the mortgage on a fixed or variable rate. But the mortgage would be amortized over 25 years.

Do you happen to know what source you first heard the nomad method?

Thanks for the reply!
 

Hey Jason! 

Thanks for organizing this. I will probably be tree planting out your way in the fall. Hopefully my days off will line up with one of these!

I am currently listening to the BRRRR book by David Greene. I have listened to the advantages of buying a property with cash. In British Columbia though to buy a single family home in a market with a decent vacancy rate, you're going to need a lot more money than I have haha. I'm wondering if anyone sees an issue with combining two strategies. The "house hack" with the BRRRR.

What I envision is, buying a house with 5% down, getting a 1 year fixed rate mortgage, putting in a lot of sweat equity, rehab, move out, rent, refinance, repeat. 

Any glaring issues? 

Thanks!

Hey!

My name is Luke. I am 30 years old and I am located in British Columbia, Canada. I work seasonally as a tree planter and have done that for the last 12 years. My dad growing up has always been a fan of real estate and always told us to buy as soon as we can. He never really got deep into the technical side of things, his strategy was always just buy and hold. I followed his advice and bought a house 6 years ago in Kamloops. Just last year my partner and I refinanced that Kamloops house and took the equity from it to buy a short term rental in Revelstoke BC. 

I broke my ankle last year and talking to my Mom one day I found out she has ZERO plan for retirement currently 59 years old. I had nothing to do sitting on the couch all day after surgery so I started listening to audiobooks, podcasts, reading some books and watching YouTube videos. Just trying to consume as much content as possible. The problem I am running into now is that is seems there are many paths you can take in this world but choosing the right one can be very unique to each persons situation. 

So let me outline mine. 

My mom (Deirdre) and her partner (Bruce) gross about $60k a year each. They are vastly different in age and Deirdre would like to retire before Bruce. She owes about $250k on her current house and it is probably worth $650-750k. She has a basement apartment that offsets some of the costs of living right now. 

My partner and I have house in Kamloops that is functioning as a student rental. We currently owe about $500k and its worth about $750k. We have about $4000 a month in rental income with $3000 a month in expenses. The short term rental in Revelstoke was purchased for $700k with 20% down. It is our first year running it but I would estimate our annual expenses are around $40k and we will gross $50k-55k in income. 

I am somewhat at a stand still right now trying to accumulate money before I make another decision. I am going to work for a full year this year which is somewhat unusual for me being a seasonal worker. So I should be able to save quite a bit of money. I have about $20k in crypto, $5k in a wealth simple robot investing account, my partner owes me $25k that she will be paying back over the next year, and my brother owes me $30k that he will be paying back over the next year. So I estimate that at this time next year I will have  around $80-100K. 

The goal is to generate enough "passive" income that my mom can retire, obviously haha. I am just wondering what you would recommend as the best direction for us to head in. I know the first suggestion is probably going to be BRRRing but that strategy just makes me nervous because A. I am not super handy so would mostly be paying for the renos and B. I don't fully understand what are the best parts to renovate or best way to calculate ARV. I am not opposed to BRRRing and if that really is the best option I will dive deeper into it.

She would ideally retire in 5-7 years and on that short of a timeframe I was thinking it might just be best to pay down the Kamloops house so that it has no mortgage rather than trying to scale up to a lot of doors with a lot of debt in markets where it is quite hard to cashflow. I know paying down the mortgage is not something people in this community recommend ever but it just seems so simple to get us to where we need to be haha. But thats probably just the lazy way out! 

Let me know what you guys think and I look forward to your ideas.