All Forum Posts by: Michael Greenberg

Where do you reside? State? County?

Yes, the Podcast heard is likely accurate. It is difficult to acquire personal property as a business, but you can quit-claim deed it to an LLC shortly thereafter. I would wait until the note is sold, then create your LLC (check your local statutes to create this) and quit-claim deed it to your LLC. Check your local requirements, but it's likely a pretty simple process, at least in AZ where I have my VR's.

Best of luck,

Mike 

@Jared Adamson Totally agree that you need a website.  I have been able to capture a large number of clients by having my own web presence, many of my most profitable as well.  Not only is VRBO changing fees but we are about to see a change to Airbnb as well.

Mike

I like @Jim Sakalis approach, but there are some nuances to vacation rentals that don't necessarily apply to long term rentals.  VR's are furnished properties so make sure to account for this cost.  Also, because your success (and failures) for rental activity and rates are largely dependent upon presentation of your property (photos), you'll likely end up with some rehab expenses or paying a bit more for a furnish ready property.  I expect to hit, if not exceed, Jim's 20%, but certainly not year 1 as you initially lower rental rates to gain some rental traction.

This is a whole new ball game for you Corey. My course of action when I start searching for additional STR's is as follows:

1. I do my own homework on STR's even if someone gives mean idea of what it could be. Search listing on Homeaway, Airbnb, TripAdvisor, etc.... and build spreadsheet of top 10 similar properties to the one(s) you are considering. Keep comments as well: Why do these properties do well? What are people saying about them in their reviews? I look at an entire year to capture seasonality. It's a multiple day undertaking. Compare using a management company to managing it yourself (cleaning, maintenance, supplies, etc.) and you'll likely find the management company will eat a substantial amount if not all of your profits. Don't convince yourself that it's right and be totally honest with the analysis.

2.  Analyze cash on cash vs. Debt and then compare this to your results in #1 above.  Good info on a website called mashvisor.com  Specifically this link:  https://www.mashvisor.com/blog/buy-rental-property-mortgage-cash/

3.  What's it going to cost to furnish?  Does it need appliances?  Remodel?  This is cash out of your pocket and become depreciating assets, not expenses of your business.  Can be good or bad depending upon your cash and tax positions.

Last comment:  My only exposure to mountain cabins is a friend of mine who owns a two bed, two bath, ski-in/ski-out in Breckenridge, Colorado.  He pays 30% of his rent to the management company and he's break even, however, his real estate value has gone way up - reason enough for him to continue to run it this way.

Best of luck and feel free to PM me or ask additional questions.

Mike

Hi Gabe,

You are thinking about VR's in the best way possible.  Multiple units on one piece of land give you the ultimate flexibility to rent them individually, some, or all of them at one time.  A VERY ideal situation to maximize your REVPAR.  Beyond that you would need to research your county/local municipalities for zoning and legalities.  I'm researching this in another geo region right now for viability though I will likely not do tiny homes that can move but likely small kit homes.

Mike

I agree with @Jason Hsiao.  Also try tools such as airdna.co and mashvisor.com.  Mashvisor is interesting in that it also provides investment tools based on Airbnb data from a particular local.  If you want to PM me I would be happy to send you a financial analysis format I created for my other VR properties. I've done both, a remodel and a turn key, both are cash flowing but you are correct, location is marketplace is extremely important for your profitability.

Cheers,

Mike

Pedro,

It's no mystery, to maximize profits you'll need to run a tight budget and yes, it's all over the place. Everyone will want a piece of your pie and because it's a "new" industry, there are all kinds of "solutions" that a lot of people will "save you money" or "make you more money". My 18-month experience is this: Control as much as you can yourself, e.g., find your own cleaning crew (preferably an individual or small group that you can work closely with), find a local laundry service (don't pay your cleaning crew to wait around for towels/sheets to dry), electronic locks (keys suck). If you're just starting out as a STR owner, you want to make sure your photos rock, you're providing everything that you have in your own home and make sure your guests are aware of it, charge lower rates at first, then after you have some positive reviews, start to raise them slowly. The other misnomer is unless you own more than one property it's going to be hard to make a lot of money. I own two and it's a challenge, especially in the off-season. No one's going to make you more money, or save you more money than yourself! There's a lot more and you can PM me if you want to exchange contact info and converse directly. I'm happy to share and can expand on Advertising and Calendar Syncs.

Mike

You might want to take a look at Mashvisor.com.  They offer a 2-week trial, somewhat similar to Airdna but deeper dives.

I do not believe beyond pricing has VRBO enabled, so I use www.pricemethod.com (Wheelhouse) for VRBO/Homeaway/Tripadvisor.  I tested this App for use with Airbnb and it was a bit flaky so I use beyond pricing for Airbnb.

Mike