All Forum Posts by: Marcello Di Gerlando

@Jasmine Moore

Don't get discouraged. Take the time and make the effort to post details about the deal.

Are you looking to buy the property? or do you own it? if your looking to buy it...move on and find another deal.

I have a Short Term Rental (STR) just outside Breckenridge Colorado. I started AirBNB/VRBO renting at the end of December 2019 so just about a month and half ago. Bookings have far exceeded exceptions and I'm now in the process of looking for a second opportunity. Where to start....many Ski towns are multi seasonal, skiing in the winter hiking, biking, fishing in the spring,summer leaf peeping in the fall; some towns may not be. Property can get hyper pricey in ski towns so strategies to cash flow a rental are limited. The mega mansions will almost never offer a return as a rental. The rents might be good to cover some expenses but that's about it. Are you buying a toy or an investment? two completely different things. I personally stay away from CONDOS as an investment vehicle. Lots of folks invest in CONOS and do fine. not me. Unpredictable by laws you have no control of and HOAs eat all the profit. If you are going to be Short Term Renting then make sure the local ordinances and laws support your approach other wise you may find yourself on the nasty end of a cease and desist letter. Good luck.

@Matthew Demetrius

The number 1 book that I hear mentioned is Rich Dad Poor Dad by Robert Kiyosaki.( I cant say I have read it because I haven't...yet) but it comes up a lot and is recommend by some very successful REI investors. Also, look at the top of this page you will see a link to the BP Bookstore. I'm a big fan of @J Scott's books. No one book or podcast or forum post will have the magic formula. Absorb as much as you can, catch the bug and keep reading and observing. The information you learn may just keep you from making very expensive mistakes.

Go to college if you can. Build a network of experts in the business and read a lot of books. REI is not a get rich quick game. Start out slow and build traction as you go and definitely dont burn bridges along the way. Good luck.

Im also a rookie in the STR game. But not so much in the REI game in general. My one and only STR came on the market in DEC 2019 and we have $40k in bookings with 50ish days booked in just over 30days live.

Lots of stuff in your post. 

From my experience banks dont often execute due on sale clause. It's a backstop for the worst case scenario. I would not be overly concerned. You should however, reach out to a real estate attorney and pay the $300 for the best approach and piece of mind. You may be better off buying the property in your name and transferring the deed after the sale. I have my STR property in an LLC.

I use Proper insurance. I cant speak to thier credibility and I'm not prepared to vouch for them at this early stage. I did a lot of back and forth due diligence with proper insurance and USAA. BLUF: USAA was simply a rental policy with an addendum. Frankly didn't cover the nuances of STR. Proper was marginally more expensive but covered the business in a more comprehensive way.

@Michael Lloyd 

LTR got it!

Insurance companies can be very tricky to deal with and like banks their terms can very wildly and be confusing to understand. As @Nik Corbaxhi mentioned you want to provided accurate info. The instinct to not disclose information is high in most people but not recommended. 

I'm not an insurance expert but you will find many here on BP. There are a couple of points when buying insurance I look for. Is the insurance covering for 'replacement cost' or 'actual cash value' very specific terms you should become familiar with. Also I pay attention exclusions and limits to certain high risk high probability events like sewage back up. 

I also prefer higher medical coverage for tenants than the default $5K. Take my post with a grain of salt. shop around and don't be afraid to ask questions of the agents and read the 10 plus page policy before you buy.

To answer your question: I use USAA insurance whenever I can.

keep shopping around. Maybe try reducing the HELOC.

I believe there are lenders who will way your total net worth in ways traditional lenders may not. I would. However,most traditional lenders will want to see income as opposed to total asset value. Hard money lenders may pay more attention especially if they can get a first position on your second home. Good luck.

@Amy Canfield

I get your pain. Working full time with a family and juggling other opportunities dose not leave a whole lot of time for texting back and forth with guests and cleaners and insurance claims, maintenance etc etc. I appreciate the fact that others find these tasks easy and no big deal. For me however they are not so easy; I would rather have others manage most of the day to day operations. Keeping and eye on the things, occasionally chatting with guests and inspecting the cleaning from time to time is all I want to take on. For this we pay Evolve vacation rentals 10% for the marketing and other chores and also charge a fair cleaning fee.

We recently starting operating our first STR and chose to go with Evolve vacation rentals as a management option. I recommend you look into their model. It's not for everyone. Some folks here on BP don't care for their model or like how they operate. However, much of the negative chat shared on BP about Evolve has turned out to either false or exaggerated.

We are in the early days with our STR and Evolve. So far things are going very well. I'm still more involved with this project than I intend to be, but right on track with expectations. By the spring, systems and contingencies should be in pace that will allow me to fully disengage as I am with our LTRs.

@Michael Lloyd

Are you considering short term or long term rental insurance? There are companies that specialize in short term vacation type insurance as opposed to traditional long term rental insurance.