All Forum Posts by: Michael Greenberg

@John Underwood Oh yes, I have that in my possession and why I am seeking legal advice.  2/3 will be tough but there is quite a bit of risk as I see it.

@Michaela G.  Thanks for the input and a good idea but unlikely fruitful enough.

@John Underwood Thanks for the input. The vote is virtual and they mailed out the ballots, only requesting that owners return it if it's a "yes", otherwise advising todiscard it. This is a very "sneaky" HOA and in my opinion borders on unethical behavior at times. It took me publicly calling out the HOA on Nextdoor.com to even find out contact information for the President. I didn't think of searching the county records, good idea! I did calculate the option of converting it to a long term rental, but the cash on cash wouldn't be favorable enough to keep it, and I would be better off selling and buying a home that has no HOA. I am REALLY leaning towards getting away from HOA's altogether - too aggravating and they are obviously a significant threat to our business.

One of my HOA's in Arizona is proposing a drastic change to the CC&R's and has put this out to vote of the community. In order for it to pass, it would require a 2/3 consent of the neighborhood. It will be tough for the HOA to gain 2/3's agreement, but if they do I'm out of business on this property. I am also very concerned about my property value declining as Scottsdale is such a big vacation destination and heavily investor focused.

In a nutshell the HOA is requesting no vacation rentals (VR's), no subletting, no room renting, and a minimum term of 60 day rental terms. The state of Arizona legalized VR's last year that restricts municipalities from disallowing them, but does not restrict HOA's. Has anyone had any experience with this or something similar?

I am thinking it is time to sell NOW. I have checked in with a few neighbors and they are against it, but I'm still uneasy. They HOA will not release a list of the neighborhood so I have no way of petitioning against this. I am seeking advice of an attorney but always looking for some input from the BP community. What would you do?

Thanks!

Mike

Hi Frank,

That's unfortunate.  In the past I have not charged guests for items that they advise me about unless it's a larger ticket item.  If I were in your shoes I would keep it all including the grill cleaning fee.  This, in my opinion, was a complete disregard for your property.  What listing sight did they come book through?  if it was Airbnb they run the same risk you do of a bad review and you also have a chance to respond so it is unlikely to hurt you.  Homeaway also allows you to respond to reviews.  

Mike

Hi Craig,

That is a VERY broad question.  There are listing sites like Airbnb, HoweAway, etc....  and there are independent ways to market a property as well.  Can you expand upon your question further, be as specific as possible?

Thanks,

Mike

@Ryan Evans I just toured a 160 acre river front parcel in Colorado today and am seriously considering a similar model but as @Jon Crosby has pointed out there is a lot to decipher and sort out. My model would be to create a "ranch" of tiny/small cabins to STR on a property that would have a main "lodge" as well. I'm just in my discovery phase of this project and still have tons of homework to do. Don't go at it on a "gut reaction" check your numbers carefully and run a cash on cash projection with realistic occupancy and expenses.

Good luck!

Mike

@Mike Palmer You might want to checkout airdna.co (not .com).  You can create a free account and search by location for this type of basic data.  It's not 100% exact, but will get you close.  Another side is Mashvisor.com but my experience airdna is more accurate.

Good luck,

Mike

@Michael Corley Nice!  I would get to a multiple of EBITDA - Earnings Before Income, Taxes, Distributions and Ammortization.  It is widely recognized among virtually all industries.  I sold my IT services business as a 5x multiple last year.  I'm not sure what that multiple would be as it is such a young industry but this calculation could help you at least determine a baseline to work / negotiate with.

Best of luck!

Mike

I think your strategy is sound Rhiannon and I would choose #2 as well, starting slowly and building your business. I have (3) homes in AZ as well and have some resources I can share if you want to private message me.  Best of luck!

Mike