All Forum Posts by: Matthew John

@Thomas Chapman We hire a cleaner. We first hired a company and they were charging too much. Right now we're working on hiring a cleaner in house and training them while providing supplies. Instead of the $50/turnover we were originally paying, I'm looking to cut that nearly in half by paying someone $12.50/hr with a raise up to $15/hr with good results. Right now we're doing laundry ourselves, but I might outsource that to my mom and pay her $15 or so every time she does it. We have enough linens/towels to last 3-4 guests, so we only do laundry after a few turnovers. 

@Paul Sandhu Nice haha. Are you able to charge more than LTR when renting to them?

@Michael Ealy Thanks a lot! That's a great idea! At least try it with 1 unit and see how it works. 

@Natalie Kolodij They seem to be doing fine so far! When I leased the bottom unit, I told them exactly our plans for the upstairs. I said no one was living in it yet, but we are going to be doing short term rentals. When we launched on Airbnb and had a few different guests, I reached out to them again and let them know that we launched & to let me know if anyone is disturbing them in anyway. I told them that they are my priority since it is their home & that if there's ever an issue, to reach out right away because I live 10 min away and can quickly be over there. They told me that everything has been great and there's been no complaints from them. I make it crystal clear to my STR guests that people occupy the downstairs and there are quiet hours & instructions on where to park in the driveway.

@Lynnette E. I ask people not to wear shoes in the house and guests do their dishes/take out their trash before they leave. If it's not done, it's not the end of the world, but it certainly makes the job easier on the cleaner. 

The target here is definitely a younger crowd. So far, I've only had 1 guest that wasn't a Millennial.

Personally, I've stayed in a hotel maybe 2-3 times over the past 4 yrs. Ever since I discovered Airbnb, it's pretty much all I'll book. I've stayed in a couple dozen all around the world and I've had really good experiences, but a couple times I wish I had booked a hotel.

There are definitely pros and cons to staying in a BNB vs Hotel. I think people like the homey feel and they get a better privacy in an Airbnb. I can't exactly tell you why someone picks us vs a hotel, but we're boasting a 75% occupancy for October and we're only 6 days into the month. I'm going to milk the extra cash flow for as long as there's demand! 

@Marisa R. Thanks! I will keep it updated! It'll be interesting how the Michigan winter effects demand and occupancy rates. So far, it's MUCH better than I had anticipated! 

@Ken Latchers So far I have all but 9 days booked for October. My long term tenants are happy, short term guests love the place, and I’m cash flowing a lot more than I would with 2 long term. It’s been a great decision!

@Matthew Giffin Nice! I’m sure Windsor is also a hot market. I would go over there all the time when I was 19.

@Brian Ploszay The property is NOT in Warren, but nearby. I also do have property in Warren, and yes, there are bad areas. However, the tenant quality in these areas are usually a step above Detroit and you can command higher rents. 

I posted above that this was my first investment property as a House Hack. It's been nearly 2yrs now and I'm no longer required to live in it. 

You're right in that Airbnb does take more time. It took me an extra couple weeks to rehab and get it ready for Airbnb. It also takes time to find a reliable cleaner and train them. If you're willing to put in more time on the front end, it could pay double or more on the backend. 

The whole point of the post was to show how I'm getting more than the 2% rule while only putting 5% down. Of course if the value of the home drops below my purchase price I could be underwater, but the fact is this property covers it's debt with 50% occupancy and there is an incredible amount of demand for units under $1000/m in this area. My worst case scenario is I rent both units long term for $1600/m. 

@Scott Berry Thanks Scott! Appreciate the positivity!

@Jay Hinrichs Granted, I was in middle school back then, but still..I can’t believe those valuations. We currently have a big problem with Japanese investors, buying houses cash and renting them out. They don’t pay taxes, don’t do repairs, they just buy and collect cash. The city has no way to contact them. The house eventually falls apart and the city goes to hell. I consistently tell people that contact me to be VERY careful if they’re looking to buy inside Detroit city limits.

@Jay Hinrichs That's insane! I don't even own anything south of 10 mile! I can't believe what people spent down there before. I'm not a fan of the ultra cheap houses, I usually go for the $100k ARV types that are in areas with higher quality tenants.

The Hotel vs BNB is all about preference. So far all my guests have been under 35, so it’s definitely a different crowd that prefer Airbnb.