All Forum Posts by: Marc Zak

Thank you all for the replies! 

These are the things that can't be fixed (or really are too expensive to fix to be reasonable).

Garage cannot reasonably fit a small car. I'd have to demolish a staircase, which would be expensive and reduce value (it would then be a non-attached garage, which I'm fine with but another buyer would not)

Kitchen layout is not ideal, and doing a full layout change would be expensive. 

Roof deck (which would give me a view) will be expensive and probably not worth it relative to the cost of the place (this is a small starter townhouse).

None of these renovations would increase square footage and I don't think they would increase the value enough to be worth the cost.

Also: it's a townhouse in an HOA and the HOA will prevent me from making some changes to the exterior.

If I stretch a little harder I may be able to get an independent house with no HOA, and I feel that deep renovation investments there could be more profitable.

Thank you Wayne.

What do you guys think of the concept of spending 100k (already committed and in process) for a basic renovation or spending the extra 60k (not committed yet; would be a total of 160k) to make it a little nicer (with minimal increase in property value).

My mom pointed out that the extra work would extend the renovation process, and it's been difficult to live here while renovating.

I have recently been able to pursue my dream of a home near the beach in San Diego. This is my first primary residence; I also own two investment properties in lower cost areas that cash flow well.

The home cost 1.7 million dollars and needed about 100k in repairs on top of that to get it livable. About 60k more would make it nice.

However, the whole process of renovating has gotten me soured on the place, and it turns out to have a few issues that may not be able to be fixed.

I’m debating between selling the property and turning it into a short term rental. I think I can get 10k / month as a short term rental.

My options include:

1. 1) Sell now and lose 100k including the renovation costs and closing costs (unless I get lucky and find someone willing to buy above market)
2. 2) Turn it into a short term rental for a year and see how it goes. Any potential loss could be offset by bonus depreciation against my W2 salary. Even though the place would have negative cash flow (negative 3000 to 4000 per month), that could be offset by appreciation.
3. 3) Stay in the place as a primary residence and hold on until I could sell it at net neutral (maybe 3 more years pending how the San Diego market does)

Any advice would be appreciated! Got myself into a bit of a bind here :)

Thanks for your input Adam. I agree with what you said and I'm leaning toward option 2 or 3.

This was my previous residence in Mississippi. I moved to California and am renting it out of state. These are my numbers. My property manager (who I trust) is moving in the next year, so I'm thinking about selling. 

It's an old house with significant maintenance / repairs needed each year, but it still cash flows. With my current property manager it's some work but minimal headache.

I am currently in year 4 of the analysis (bought it in 2021)

Alternatives would be to sell the house and put the equity (about 100k now) into another investment property or a mix of stocks and bitcoin.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Here are the details:

I have recently been able to pursue my dream of a home near the beach in San Diego. This is my first primary residence; I also own two investment properties in lower cost areas that cash flow well.

The home cost 1.7 million dollars and needed about 100k in repairs on top of that to get it livable. About 60k more would make it nice.

However, the whole process of renovating has gotten me soured on the place, and it turns out to have a few issues that may not be able to be fixed.

I’m debating between selling the property and turning it into a short term rental. I think I can get 10k / month as a short term rental.

My options include:

1. 1) Sell now and lose 100k including the renovation costs and closing costs (unless I get lucky and find someone willing to buy above market)
2. 2) Turn it into a short term rental for a year and see how it goes. The calculation above is for the place as an airbnb. Any potential loss could be offset by bonus depreciation against my W2 salary. Even though the place has negative cash flow, that could be offset by appreciation.
3. 3) Stay in the place as a primary residence and hold on until I could sell it at net neutral (maybe 3 more years pending how the San Diego market does)

Any advice would be appreciated! Got myself into a bit of a bind here :)

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Yes I am looking to co-manage. Agree that insurance is important but I can take care of that myself. 

I am interested in turning my primary residence in North Pacific Beach into a short term rental. I've previously managed Airbnbs and mid -term rentals very successfully.  That was years ago, and I've progressed in my main career since then to the point that I currently don't have the time to manage an Airbnb on my own.

Can anyone here point me in the right direction to find someone to help with Airbnb management? I'd ideally be looking for someone just getting into the game who is willing to put in the time and legwork. I would provide the property and the mentorship.