All Forum Posts by: Michael Greenberg

Hi Tim,

Airdna has a product called Investment Explorer.  Reach out to them and they'll get you the details.  @Nancy Bachety has a good methodology as well, but also make sure to check local regulations and laws. Avoid HOA when and wherever possible.

Best of luck,

Mike

Hi Julia Ann,

I am currently utilizing Airdna's market minder tool and would like to converse with some other users of their data.  I do find their data to be relatively accurate, maybe a 5% variance between my actual performance and what they report.  Can we connect and discuss further?  I'll send you a PM now.

Mike

@Kevin Lefeuvre

I like this discussion as I am contemplating the same issue right now.  One would think that heads in beds would be the overarching factor, but my historical tracking tells me otherwise (at least in AZ).  I have (2) 2-bedroom and (1) 3-bedroom condos, all within a mile of one another and all within a relatively short distance of Scottsdale.  For argument sake I'll toss out one of the (2) bedrooms since I just purchased it 4 months ago and do not have enough data to study.  The remaining (2) bedroom sleeps 6, the (3) bedroom sleeps 10.  I rarely have more than 6 guests in my (3) bedroom, and rarely more than 4 guests in my (2) bedroom.  YTD my rents are close, and believe it or not, the (2) bedroom is outpacing the (3) bedroom by 4% YTD net.

Photos and design do matter - Both places have stellar photos, but when I repaint/redesign my (3) bedroom, I'm going to lighten it up even more so - so it "pops", refurnish the 3rd bedroom with two full size beds instead of a full size / day bed / trundle to pack them in.  My (2) bedroom jumps off the listing page and my gut tells me this matters (and so do the so called "industry experts".

Location matters more than size (at least in townhouses/condos) - my (2) bedroom is nearly on top of Old Town Scottsdale - entertainment district - a 5 minute walk.  The (3) bedroom is 1-mile away, a $5 UBER/car ride.

This leads me to believe that demographics are playing a large roll as well.  Based upon my guest photos and communication I receive, the (2) bedroom, walking distance draws a younger crowd whereas the (3) bedroom draws a more mature crowd.  The (3) bedrooms ADR is 3% higher than the (2) bedroom, however my occupancy is 13% higher in the (2) bedroom.

To confuse the situation further, I am now looking to acquire (2) homes in the area. From my research, and I'm exhausting this search, the top properties all appear to have pools, all jump off the page and their design elements are amazing. They also can sleep anywhere between 12 - 16 and nothing of this size has an Old Town walking location. This tosses my entire location theory for condos/townhouses right out the window, except for demographics.  They do net significantly higher rates and the cap rates are about 2-3% higher.  I'm concluding from this study that if I provide a bright, remodeled, 4-5 bedroom entertainment mecca house, e.g., sleep multiple or large families, provide a pool, putting green, billiards/foosball table, etc....  you can entice an entirely different demographic that the condo/townhouse crowd.  

@Jon Crosby - do you think # of bathrooms matter?  I'm thinking the ultimate house is 5 bedroom / 3 bath whereas you're considering at 5 bed / 2 bath.

Mike

As with @Jon Crosby I too use NEST in two of my properties.  On a rare occasions they drop but that has more to do with my ISP than the NEST.  The only issue I have with NEST is that you can only have two thermostats per user account.  With that said, I purchased a SENSI for a 3rd property and it works well as long as the battery (NEST doesn't have a battery) stays charged.  An issue because I live in CO and my rentals are in AZ.  

Check out glampinghub.com for more information.  This website is the Airbnb of glamping and they may have some details you are searching for as well.

Hi Julia,

I'm all about setting and forgetting (partially). I use mint.com to track my personal and STR finances. Since my LLC is single member, it all flows to me anyway so I figure "why not make it simple and nearly free". I did setup a separate bank account but in hindsight I may not have because of the above. I then use Mint to create categories, tags, and notes to track and manage. The reason I say nearly free, is that mint.com is free, but I did buy an add on product for mint called minttoreport. It allows me to export my data from mint.com and import it into minttoreport to create P&L reports and track income and expenses. Works really great once you "tweak it" and get used to how to use mint.com

Mike

@Valerie Rogers

@Kevin Lefeuvre

Yes, the marketing challenges are by far the biggest unknown at this point.  One of the properties I'm considering could likely sleep +20 people, but that's a total house party and very concerning on many different levels  Honestly the master bedroom is so big it's kind of ridiculous and needs to be reconfigured.  I could easily put (3) CalKings in the room.  Who designs that??  So my thinking is to likely split it into (2) listings, one 2-bedroom and one 3-bedroom with a shared pool.  I might throw an ad out for high season and monthly rentals to see if I could capture a two family stay.  The financial reasons are very strong to be able to market it with this level of flexibility.  As for disturbing the neighbors, I currently have an fine for noise and disturbance of the neighborhood.  I have had one complaint in over 150 stays, so it seems to work (or my guests are quiet).  Still much to consider but insightful input from both of you - thanks!

Mike

Currently three properties, averages 15 cleanings per month.

I am looking to purchase a "flexible" vacation rental home.  One I am considering is 3,000 square feet, 5 bedrooms, 5 bathrooms, a large entertainment area and a pool.  I am considering sectioning off two of the bedrooms and adding a small second kitchenette to the space so the entire space becomes flexible instead of just a 5 bedroom home.  This section of the house also has a separate entrance and pool access.  Is anyone doing this now?  How do you list your property for rent, e.g., three separate listings, or???  If so, have you run into any regulatory/zoning issues if it is zone for residential use only?

Thanks!

Mike

Hey Lucas,

Treating a really good cleaner is so critical so I asked her if it was OK to pay once a month.  She agreed and it works really great for both of us.  I ACH her the funds after her last cleaning every month.  I'll occasionally send her a little "bonus" out of the blue and of course a holiday bonus/gift.  This is well worth the cost of asking an occasional favor when needed.  I believe she values my business greatly as well since I keep her very busy.

Mike