All Forum Posts by: Michael Greenberg

@Luke Carl has a good point and a buyer would likely be unable to secure financing with a proforma.  I would separate out the two, sell the property and sell the "business" portion separately.  Since you're a realtor you could experiment with how to list the property with the best chance of attracting an investment buyer.  

Keep us posted, interested to learn how it goes.

Mike

Sorry @Julia Fair it's Click2Flip  I just double checked on the Google Play Store, I'm assuming it's on Apple as well.

Mike

Hi Joshua,

A couple of ideas.  First download @Jon Crosby 's app called click to flip and run a few numbers just to get a broad idea of feasibility.  Then I would start search ABB for "like" properties and build the big spreadsheet all of us successful investors have done in the past to analyse the feasibility of the property.  Once you've beat it to death and chopped your numbers in half, then in half again, if its still a viable angle - charge ahead.  Make sure to check the local municipalities for regulations as well.  At a glance, I really like your idea, and it appears that the funkier, the better so keep that in mind when you're looking to furnish.  

Best of luck,

Mike

I just launched a fully remodeled 4 bedroom, 3 bathroom, with wide open and big living spaces inclusive of a big pool table, (7) TV's, sleeps 13 home with a yard that could host party for 50 with a massive pergola with outdoor kitchen, pool, putting, green, and other games!  For now, I have decided to lock of the garage but I have recently seen listings where hosts have converted the garage to bunk houses and game rooms.  There is a driveway for parking cars as well as ample street parking.  No matter what, I think I would install another bathroom (1/2 or full), windows, flooring, lighting etc... and/or possibly replace the sold garage door with a glass one.  A $10k-$15k investment.

Any larger home operators or renters have clever ideas for this space?  Could sleeping 16-20 as opposed to 13 justify the cost in a highly transient, snowbird location like Scottsdale, AZ?

Thanks,

Mike

Hi David,

I currently have 4 properties, use Turnoverbnb to track cleanings and pay my cleaners (and other regular maintenance co's) monthly.  It's definitely a lot simpler and few transactions is so much easier to manage than every service.  I pay by ACH as well to avoid having to write checks and mail so they receive their funds quickly and it's efficient.  It helps keep it a part time job for full time pay :-)

Congrats on expansion!

Mike

Lately a lot more than the past but I'm launching a (4) property now that is large home and that just takes a lot of time.  I am also embarking on a website overhaul and spend a fair amount of time updating pricing and looking for new ideas and opportunities (some here on BP).  It's certainly not a full time job but consumes about 2-3 hours every morning, including weekends because none of us can hang a closed sign in the window.

I have done the same and it is possible if you work LONG hours.  Pre-order as much as you can from Amazon (get a prime account if you don't  have one - free 2day shipping) and have it delivered on the day you arrive.  I'm not sure IKEA will provide furnishing services, however it is a great place to buy things including furniture, kitchen items, blankets, etc...  rent a large vehicle or truck - you'll need it if you go this route.  I would look for a furniture warehouse that has a website so you can pick out what you want and schedule a delivery on your arrival day.  Don't forget rugs, nightstands, beds, chairs, tables, etc.... Find a Kirklands store hopefully near by for wall art and items that will spruce your place up for photos.  Speaking of photos, either buy a DSLR or find a photographer to get started - you can always reshoot later, but photos are KEY to your success.  Do you have a cleaner?  Critial or kill your reviews.  I found my on a website called Nextdoor - put in your LA address and search for cleaners or post a request for referrals.  

Best of luck!

Mike

@Mike V. and @Luke Carl Nope, not doing it, but don't feel crazy Mike - it certainly has been a thought of mine in the past. I learned a long time ago in a prior professional life to not allow others to "bribe me" (for lack of a better term). For those of us treating our STR's as a business, we are making business decisions with upstanding moral and ethical practices. The OTA's want you to believe this is easy, far from it if you want to be really good at it, but being good doesn't mean you have to compromise. One of the challenges for a B-to-C business is that at times you will find individuals that do not have the same standards and beliefs that you do, it's just part of the business. My overall 4.8 Airbnb and VRBO ratings are fine by me and the few unethical guests that try to negotiate "post stay" are not affecting my overall rating or stance that I am not beholden to them as they are not beholden to me.

I won't be beholden to any guest and take a firm stance on "paying for reviews" at all.  If there are problems, I certainly offer discounts/refunds, but they are never tied to reviews.  I have had a few "either pay me or else..." threats and I don't take kindly to those, to the point where I had a guest hammer me with a 1*, but it's one of a couple hundred and it didn't affect much.  I too agree with @John Underwood, provide a 5* experience and get a 5* review.  Occasionally I receive a guest who loved their stay and gives a 4*.  I'm not 100% sure why that is, but there are people that don't give perfect reviews no matter what.  @Carly M. and @Jay Hinrichs you make excellent points - all reviews become suspect (though in general I think the process is flawed but what else should the OTA's be doing?).  @Joe Kim I'm slowly working my way into a similar plan as you - freedom from the OTA's - it's a large undertaking (time and financially) but I do think it's necessary as I grow my business.

Mike

Hi Brigette,

I have used all of them and have now gone back to managing the pricing myself.  It doesn't take much effort, 5 minutes every morning to adjust accordingly, and about 2-hours the beginning of every month to compare against my data set.  VRBO/Homeaway recently launch a product called MarketMaker. It helps you determine the competitors in your local market and how they have priced their properties.  Take a look at it.  For Airbnb, I have a handful of properties that I watch and compare pricing against, so I know that I am competitive.  I am also beta testing a product called RentyBump.  This tool is a bit different than the others in that @Alan Da Costa has designed it to capture data for your use prior and post stay and provides a recommendation on what % to price your property in comparison to the competition.  He's a new player in the pricing market and his product has a lot of promise.  He only has a few markets in test right now, but worth watching.

As for occupancy, no matter what the OTA's tell you, it's all about pricing.  The right pricing will give you higher occupancy.  Adjust your pricing often and you'll improve your Airbnb rankings.  Price it competitively on VRBO and you'll improve your rankings (but I have not seen a change in rankings based on frequency).

Final comment - I don't, and will not use Booking unless they change their interface and process.  Be careful, my experience was that they were very restrictive and have a "don't care" mentality about the business and the hosts.

Best of luck in your new venture!

Mike