All Forum Posts by: Mark Futalan

@Luke Carl

It probably is not sure why I couldn’t actually get the link posted on hear properly.

I totally agree our city out here actually put a 90 day ban on new STR permits because investors and 2nd home owners are purchasing properties out here left and right.

Just thought I’d share this link I got today on best places to invest in VR in 2020.

https://www.airdna.co/blog/best-places-to-invest-in-us-vacation-rentals

@Tara Faulks

I agree that gas expense is typically higher especially if you have a heated pool but that cost is typically past on to guests. I usually see around $50-75/day charged to heat pool. Not needed during summers but definitely during the winter and early parts of the year. Electric bill usually highest in the summer with AC running 24/7 with highest bills typically July-August/September.

Hi,

Curious to know if anyone has had issues qualifying for more mortgage loans with rental income from an STR. I bought 2 over the past 2 years (1 each year), and I'm noticing a trend with the write offs from the set up of our STR's actually hurting your ability to qualify for more loans. For example, the first home we showed a "loss" due to the expenses incurred to furnish/set up etc that first year. This year we were positive but our 2nd place showed a "loss" because of the same reason as house #1. So on paper it looks like a negative and since we don't have a long term contract, some lenders are reluctant to use that income. So I guess my question is do I need to show more rental income to boost our income on paper to qualify for more loans or are their methods for lenders to write off those expenses incurred in the first year so they don't negatively effect us. Hope this makes sense. Thanks!

@Robert Neal

I invest in short term vacation rentals. The things we look for may not be what most investors look for right away. First and foremost is potential return but tied to that are the style/design/layout and location of the home. What kind of unique character does the home have compared to others in the area? How private is the home from neighbors? Is the layout functional? Is the property centrally located to the important activities in the area? These are all things we look for with our Airbnb’s as design/aesthetics/location/uniqueness play an integral part in our rentals success.

@Juan Beltran

There are many options you can take to start your RE career. We sold our primary residence 3-4 years ago and moved in with family to help take care of our 2 kids, one a newborn at the time. With the sale, we were able to purchase 2 vacation rentals and save money each month by not paying a mortgage or rent and we have enough saved to purchase another home should the opportunity arise. Our VR’s are cash flowing and have appreciated significantly that we can tap into it if we needed to. It’s a sacrafice but it was the best decision we ever made.

@Cesar Gomez

We sold our primary home 3-4 years ago and moved in with family to help take care of our young kids. Best decision we ever made. We were able to purchase 2 vacation rentals and still have money saved for another deal or even a primary, if necessary. Also, in the process of getting my RE license. I agree like most, 5k isn’t much because there are things like closing costs, repairs, down payment, reserves etc that you may need to account for.

I’d prefer the private feedback more than the public feedback for all potential guests to see. It at least gives us a chance to address the issue without deterring other renters. Most private feedback we’ve gotten usually has to do with small missed items by our cleaner which in turn allows us to correct and provide feedback to them for future reservations.

@Andrew R.

Ok that's what I figured. A couple other things. Your nightly rate is a little low for a 4 bedroom house. Does it have a pool? I assume you could easily get $200-$300/night for a house that size and more if you have a well themed and tons of amenities. Also what occupancy rate are you using? STR's are a little different in that most cases, your not booked 100% of the time. I strive for 50-80% on most months with premium rates. Also there is a seasonality involved with March and April typically being our highest performers due to the events happening during that time. If you do decide to go property mgmt, make sure you go with one with a good reputation because reviews are everything with STR's. If you do ever decide to self manage, reach out. I have 2 that I manage with a full time job and family. It's not as challenging as it seems especially with automation. Best of luck.

@Andrew R.

Hi is this an STR or LTR? If you self manage, which a lot of people do, you can put they property mgmt fee in your pocket. I self manage 2 STR's in the area. Also, noticed a cost on HOA. If you STR the property, is it allowable in that HOA community? Cleaning expenses are also typically higher on an STR but again that cost is typically past on to the guest.