All Forum Posts by: Mikayla Mitchell

Yes! For architect Andrea Keller fourddesign.com

Following this thread. And love the Coop idea :) Chris - just read your profile. You mentioned that your model works if interest rates stay low. Since they’re rising, what impact has that been making on the profitability of the project? Are you still doing developments or are you having to rejigger your proforma assumptions? Also, we hear about state or federal assistance programs, but do they actually help? 

Yes, Andrea Keller

https://www.fourddesign.com

Revenue/bookings.
Joshua Tree area, Big Bear, 2020-2021 peak destination areas esp in CA and many places nationally. I'm part of multiple investor groups and friends with STR properties in various cities. They're bookings are down from last year. Like I said, look into the specific market and make your own determination. We can't expect things to be status quo from the last 2 years, it would be ignoring the current economic climate entirely.

And one thing is to not take advice from a realtor who is saying to blindly invest. Of course they are going to deny the STR market going down because it's in their best interest. Listen to investors who are currently in the market you want to go into. From what I hear, STRs are decreasing.

About to close on a primary home in Big Bear that I may or may not STR at some point, if not very part time.

Does anyone have a good GC or sub contacts in the area? I’m also looking for a good surveyor who can also do interior as builts.

And lastly does anyone have a contact for someone who could be a Compliance Officer if I STR?
Thank you!

Ya the operative is if they aren’t doing large amounts of work and if doing more small scale handyman services sporadically. Misspoke here and def not good advice if you need someone doing bigger projects at a time and more specialized. But the OP has 3 properties with what I could, incorrectly possibly, assume there’s not a ton of work being done at a time, so under $500 each project. I grew up around my grandfather as a ghetto landlord and he never did anything by the book.. and I’m a bit of a rule breaker at heart. So bad advice? Maybe. But do I think there’s gonna be a sting op for someone doing such small scale projects on their own properties? Extremely unlikely, yet the risk is there. 

There’s a few questions here.

First, a cleaner doesn’t need to have a business license in order to work for you, if that’s the type of license you’re referring to. There’s no license they need in order to make paying them legal, it’s just on them to get it.

You can pay them directly and then if you pay them over $600 a year, you need to issue them a 1099. The 1099 can be issued under their first name, or whatever name you make the check out to. You can file those on Efile Magic for like $5. Just have all your contractors fill out a W9 so you have their info on file when you file their 1099. And if you don’t file the 1099, there’s really no way the IRS would find out anyways though. A 1099 is just a tax filing that reports that that person received freelancer/contractor funds and reports the amount to the IRS so that the payee doesn’t skip out on paying taxes.

Then when it comes to hiring someone who does maintenance on your properties, you don’t need them to be licensed in anything particular as long as they aren’t doing super specialized services that require a type of general contractor license (pretty sure, but since you’re also the owner, this also may not matter). However, even if you do, so many landlords don’t hire licensed people anyways on their properties and the person who is unlicensed is way more likely to get in trouble than you. No one is checking anything here.

Same situation goes here with the 1099 above. You can pay them however much, and if over $600, you “should” issue a 1099.

You’re pretty much fine.