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All Forum Posts by: Account Closed

Account Closed has started 60 posts and replied 147 times.

Post: Partnership Proposal for Rehab and Hold - Quadplex

Account ClosedPosted
  • Rental Property Investor
  • Dallas, TX
  • Posts 155
  • Votes 44

Hello,

I am in the beginning stages of partnering on a Quadplex deal. I want to get the partnership structure taken care of ASAP so we can agree/disagree, negotiate and move on.

My partner is out of state (California), and he will find the money (his network) for the down payment. According to my understanding, lender will cover 100% rehab, so we just need closing costs (fees, inspection, appraisal, down payment etc).

I am local to the deal. It’s right down the street from my short term rental property.

I will coordinate and manage rehab with the GC that we higher. 

I’ve never done this before, so I need some input if it’s available. 

Do you have a document to share? PST partnership proposal?

Is 50/50 fair?

I am all ears!

Thanks,

Nick




Post: Creative Financing Loan Plus Rehab

Account ClosedPosted
  • Rental Property Investor
  • Dallas, TX
  • Posts 155
  • Votes 44

Hello,

I am new to Creative Financing. Never done one of these deals, but am excited to try my hand at this. There are quite a few off market SFH on my street that I would like to buy via creative financing. There is a caveat though... I want to owner finance the house and the rehab. Is this unusual? How could I present such an offer to an owner?

Thanks,

Nick

Post: Fully Gut Rehab Estimate / Contractors

Account ClosedPosted
  • Rental Property Investor
  • Dallas, TX
  • Posts 155
  • Votes 44

Hello,

I’m seeking a referrals for full gut rehab contractors in Dallas. Specifically for Single Family Homes in the Bishop Arts District.

I am looking to purchase a house close to my current STR to and need to get an idea of rehab costs.

Thanks,

Nick



Post: Real Estate Lawyer for Partnership

Account ClosedPosted
  • Rental Property Investor
  • Dallas, TX
  • Posts 155
  • Votes 44

Hello,

I am seeking a real estate lawyer for a short term rental partnership with a friend of mine.

Thanks in advance,

Nick

Post: Commercial Insurance on Primary Residence

Account ClosedPosted
  • Rental Property Investor
  • Dallas, TX
  • Posts 155
  • Votes 44

Hello,

Will the title company have an issue if I buy a commercial home insurance policy on my primary residence? I travel a lot, so I want to airbnb while I am out of town. I do know that title companies are sensitive to this though...

I look forward to your input / advice!

Thanks,

Nick

Post: Airbnb Arbitrage Questions

Account ClosedPosted
  • Rental Property Investor
  • Dallas, TX
  • Posts 155
  • Votes 44

Hello,

I completely get how the arbitrage model works. I do have a few questions that I have not seen answered in any YouTube videos though:

1. How does this work in a large community where there are gates / doors that have to be passed through with key fabs and or keys? The front desk is obviously not going to want to be dealing with Airbnb guests, and they are again only their during business hours.

2. How do cleaners enter the property to clean and turnover if again they need key fabs and or keys to enter property?

I want to begin pitching property managers in my area, but I must understand these questions before I do so.

Thanks,

Nick

Post: Short Term Rental CPA

Account ClosedPosted
  • Rental Property Investor
  • Dallas, TX
  • Posts 155
  • Votes 44

Hello,

The taxes from my short term rental are due on the 15th of May. This was my first quarter as a business owner. How amazing and fulfilling it has been so far.

We need to pay taxes though, and I want to deduct what I can at the end of the year, as efficiently and effectively as possible. Where can I begin the search for a CPA who is experienced and owns short term rentals themselves?

Thanks in advance,

Nick

Post: Short Term Rental (1st Month)

Account ClosedPosted
  • Rental Property Investor
  • Dallas, TX
  • Posts 155
  • Votes 44

@Meghan McGill

Thanks for reading! Yes, we live off site now in a studio apartment.

That is correct, no unregistered guests are allowed at the property. This is a very common STR house rule.

To mitigate this situation from happening again:

No more “instant book”

More qualification questions, but non-invasive

Much higher nightly rate, because $100 per night for 4 guests is very easy for lower end clients to book, compared to $190-$200 per night.

Here is a link to the listing:

I would love your feedback.

https://abnb.me/iEhkU2GQtfb

Thanks,

Nick

Post: Short Term Rental (1st Month)

Account ClosedPosted
  • Rental Property Investor
  • Dallas, TX
  • Posts 155
  • Votes 44

Hello!

What an experience we have had during our first month as a short term rental provider. Below, I am going to briefly provide the experience that my girlfriend and I have had so far hosting out house on Airbnb. Ask, and I will provide you a link to the property.

To begin, we read, listened, and studied all of the available AirBnB books, many of the available podcasts, and blog posts available around the internet, but I tell you, you are never completely ready for everything that is to come your way.

We have created a very nice experience for our guests, which includes many small amenities, such as disposable slippers, tooth brushes, tooth paste, sleeping shades, and a few extra goodies that you may have left at home.... At least I do all the time while traveling.

Way back before we opened our doors, I contacted AirBnB through their customer support chat, and asked a very specific question: "Can I list my place as an Entire Place if I live in the property and the guest can use all spaces?"... This uneducated rep provided me with an answer that would haunt me for many nights, and is still haunting me to this very post. I am sure, as many of you are quite experienced in this space, that I was provided with a very wrong answer.

No, of course you cannot list this space as an Entire Space if you live there, you dummy! Well, if only I was wise enough to listen to everyone around me sounding the alarms and waving the red flags.

Fast forward, 3 months from that question and answer: We are booking nights like they were going out of style! $150 per night up to $170 per night like it was nothing.

FYI ****** All throughout the listing, it was mentioned that we LIVED IN THE PROPERTY ****** But as we soon came to understand, not one guests made their decision on anymore than the listing photos.

Then came the first guest... They did not expect us to be on the property, and this led to a late night on the phone with AirBNB, negotiating for a full refund of the guest did not leave a review, and it was agreed upon.

This uncomfortable experience led to the notification of all future bookings inquiring as to whether or not they in fact read the listing and noticed that we lived in the property. As I am sure you guessed, absolutely not! Not one of them realized that.

Next thing you know we are providing over $4,000.00 in refunds.

Ok, so we learned the lesson. This was not an Entire Place, as we provided Private Rooms in a shared space...

So, we made the adjustment after spending a good amount of time with multiple AirBnB representatives over the period of a few days.

But, do you think the guests understood what a "Private Room in a Shared Space was either? ABSOLUTELY NOT!! Fast forward, a few days, we began receiving more bookings again, but as a Shared Space with Private Rooms... The title was presented as follows" 2 Private Bedrooms / 1.5 Private Bathrooms Shared Space".

Guests still showed up and did not expect us to be there. Just so you know, our master suite is large enough to reside in, and remain comfortable. So yea, more guests began showing up and kept trying to open out bedroom door from the inside and outside. Eventually we had to come out and approach them confirming that they in fact booked a "Shared Space". What a wild ride.

One of these bookings ended terribly. I will provide the exact language of the public and private review below: PLEASE NOTE, all of these accusations are completely false, and have been investigated by AirBnb... P.S. > their internal customer service is as slow and painstaking as customer service comes... I have 7 years in customer service and sales.

Here is her first message to me: "Your place is highly not recommend she walked in on us. This is not a private bedroom y’all are watching people and your business wont last doing that at all! Invasive almost ridiculous ghetto place to rent ! I will spread the word"

Here is my response: "Makayla, This is a shared place. You booked it knowing that. Contact Airbnb with any issues. Thanks,Nick".

She cancelled and left the property shortly after these messages. Next comes her Public Review: "Don’t come to this home the gave us 24 hrs but check in is at 4pm we had to leave at 11am ! Not even 24hrs . Also her and her weird *** husband has cameras everywhere even in the bathroom! They walked in on us . Don’t fall victim to their scamming ***. With this ghetto *** house they want $169 for! Then the crazy mf said quiet time between 10pm & 6am hell no !!!"

Here is her private review and feedback

Private feedback: Your business will close this year, the house loans yall have on that display fake living house in the ghetto, you will pay out of pocket! Your house is ****** & y’all are a weird *** set of people.y’all will stop scamming people you would reap what you sow shady bi****s !

Accuracy feedback:
They lied & said they weren’t there but when we pulled up they were in the back room . They should have just opened the door for us very unprofessional!

Cleanliness feedback:
They said we can’t touch anything & that we have to be quiet .

Communication feedback:
They said we had a full day to rent but check in was @ 4pm & we had to leave at 11am . Not even a full day

Location feedback:
Ghetto

Value feedback:
They walked in on us naked & lied on their terms and conditions

Crazy, right? All totally bogus, as they booked it as a "Shared Space".

The next thing you know, AirBnB is freezing my account and beginning an investigation on whether or not we have cameras in the bathroom and bedrooms, which of course ended confirming no cameras inside of the property. BUT we still have her public 1 star review, which is going on 8 days of dispute review... How does it take 8 days to review such a terrible review?

Believe it or not, but the story just gets better!

Fast forward two guests: Three females rent the spaces for 6 nights. The first night, they smoke marijuana in the backyard, and I message them stating that we smelled it, and she apologized and said that she thought that we meant no smoking in the house. We let that slide.

One night later, we get some motion on the ring doorbell camera at 2am and 4am. When we woke up and checked the cameras, there were two unregistered males entering and leaving the property at the above mentioned times.

Later that AM, we receive more motion on the front door camera... Guest what! Three females, none of which we have seen before pull up and begin standing on the porch speaking with the guests on their cell phone. Next thing you know, they are dropping something into our mailbox! We now live in a studio apartment down the road, and hi-tailed it over to the property to try and arrive before the guests did, but they beat us to the mailbox and received their bounty on camera like the rest of the activities. Oh, and we called the cops after we arrived, but they were not Abel to do anything, because there was no evidence, and due to the legal contract nature of the AirBnB reservation. 

This began the first of many calls to AirBnB. Of course, their service was super slow. I spoke with 4-6 different ambassadors over the next 24 hours. No joke. It's absolutely insane, but I do understand the time differences, due to the fact that they all pretty much work in the Philippines or Europe.

After repeating the same information to representative after representative, and providing photo and video evidence, 24 hours later, they were finally kicked out of our house.

What's funny, is that they were the first to provide us with a "review" in our journal on the coffee table.... "Thanks for letting us stay, we loved the space". They had no idea why they were being removed, because AirBnB does not provide a reason, for safety reasons, I can only assume.

Earlier today, I receive the notification to review the group.... Oh no, not again! You mean that these girls are going to be given the right to review their stay???? My answer from AirBnB was as follows: "Unfurtuanally, right now we're unsure if the guest will be able to leave a review for this reservation. However, in case they leave a review, please do not heasitate to contact us back and the team specialized will be able to assist you, you can provide them with the below ticket number which is related to this cancellation and they will investigate how they can help you.
Ticket number: ***********"

Are you kidding me? After all that we just went through, AirBnB has just provided this delinquent guest with the opportunity to review their stay! FU****** incredible! It's like one punch to the gut after another with this company.  Is customer service this complicated? Are they really not set up to prevent an evicted guest from leaving a review?

As you have seen, the ride has been quite adventurous so far.

The good news is, we have learned and are learning. Price per night has more than doubled, Instant Book has been turned off, and we will vet prospective customers as well as you possible can without being invasive.


Thanks for reading, and I look forward to your comments,

Nick

Post: Deducting Travel While Searching for Properties

Account ClosedPosted
  • Rental Property Investor
  • Dallas, TX
  • Posts 155
  • Votes 44

Hello,

I recently listed my first Airbnb through a house-hack. As of today, we have 0 reviews, 9 days on the platform, have not received our first guests, and have $2,500 in bookings! That is a great feeling. Three solid months working away after the 9-5 in order to furnish and prepare the property.

Now, we want to find a property in a different state or country that we can travel to, and rent on Airbnb when we are not present.

What exactly do we need to do in order to claim our travel as a business trip? Do I need to book meetings with cleaners, property management companies, and realtors? Do we need a paper trail of the business we were conducting? 

This is totally new to me, and I am an open book.

Thanks, Nick