All Forum Posts by: Patricia Steiner

Appraisal concerns are certainly a factor but it may not pass an inspection either.  When no contingencies becomes the contingency, it's an attempt to take away the normal safeguards in a real estate transaction. Before making an offer, you should have comparable sales to support the price - and if not, don't accept the mandate. I would also ask them to provide proof that the property will have an acceptable 4-point for the engagement of insurance before an inspection contingency would be waived.  Proceed with care - if at all...

Whoa...you're running a business.  You reserved the property - and made it not available based on the days the guest booked it.  As such, you are entitled to the full stay rental price whether they leave in a day or stay the full RESERVED period.  When asked for a refund, just say no - and explain that you held the property for them exclusively during the time they requested it.  And, why are they supposedly leaving - and now hedging?  They obviously are not in a medical emergency or a family crisis - because "I'll let you know" pretty much kicks those emergencies to the curb.

Let AirBnb know that you will not be authorizing a refund and that the guests are still occupying the property.  On their last day at departure time, send in your cleaners!  Now you're letting them know.  Crazy...sorry you're having to deal with this.

A trust and an LLC are two different things. First, what type of Trust did you title in? For example, Revocable Trust do not provide asset protection like LLCs do. You can leave the property in the Trust if you like and purchase an Umbrella Insurance Policy (a cheap date that all investors should have/consider) which will give you more protection should you be sued. I recommend reading the following article all the way through to the case studies to decide whether an Umbrella or an LLC will give you the protection you're seeking: https://www.apartments.com/ren...

Hope this helps...

It's been said at the end of the world, only styrofoam and cockroaches will survive.  Who knows...but the problem being reported to you is common.  Take a look at this:  "It is normal for roaches to come out once they spray and for two weeks, you will see lots of them but don't be afraid. It is typical to see them wandering around since they have been sprayed so they will look for food sources or water for them to thrive."  (Go-Forth Pest Control - and every other pest control company posting online).  And, you can't prove that Tenant #1 is the cause...it's an assumption and one that you don't want to rely on.  There are a couple of ways of handling this:

1.  First and probably too late - is to have a lease clause that states that the property/unit is being turned over to them "free of insects/bugs/rodents." As such, any infestation thereafter will be the tenant's responsibility to cure/exterminate.  If it's not in your lease, it's worth adding in the future to ensure that Tenants keep the units clean.

2.  Treat the unit for cockroaches again and let the tenant know that the suckers might continue to be seen for up to 2 weeks afterwards.  

3. Seal up the parameter of your property:  "Roaches come into your home in search of three things: food, shelter, and water. They have also developed the ability to use even the smallest of openings as an entryway into your house. They can come in through cracks in the exterior walls, dryer vents, or even the gaps between walls and floors."  We buy caulk in bulk and we seal the property up tight.  It makes a huge difference.

I'm sorry you're having to deal with this; unfortunately, it's one of the joys of real estate ownership/investing.  Hope this helps to know that we've all been there, done that, survived it.  You're almost through it...

Sounds like you're doing well in your business.  You'll need two years of tax returns as a self-employed person for a conventional loan. Your credit history will also pay a huge part in the process - as it does for everyone - but with the your huge jump in income year-over-year, it will be even more so.  My recommendation is go talk to a lender; start with your bank where they have an account history and ask them to pre-approve you. It costs nothing and it will give you a good idea as to what price point you can buy in and what else might be needed to shore up your application.  There are a lot of different mortgage programs out there.  I personally like to direct my new home buyers to a First Time Home Buyer Program that pays for their closing costs and only requires a small down payment like 5%.  These are common so take advantage of what you'll be eligible for just once.  And, you can also call a 24/7 or online lender - like a Rocket Mortgage - to get a test ride on it done. Just know, once they have your contact information, it's rough getting them to stop calling/emailing.  Best...

PLEASE do not make an offer without doing some high level vetting.  You'll just be wasting everyone's time - including your own.  Look at the drivers first:  

1. Market - is it appreciating in value; does it command a rent price that will give you the ROI that you want for the investment.

2. Tenant Quality - is it located in a market where the tenants are employed, stable - versus so transient that a 30-day stay is considered normal (and you can't make money with those).

3.  Are the Bones good?  This is critical. If the foundation is solid, the electrical passes code, the roof has life left, the plumbing is functioning - that's the heavy (and costly) lifting.  These are also the components of a 4-point inspection; add a condition to your offers that states "an acceptable 4-point is required for the engagement of insurance."  

4.  Renovation...you control this:  how much you do, what grade of materials, what gets done now versus later.

So how long does this take:  an hour after walking it.  If it's taking you longer to do your analysis, you're going too deep.  Condition your offer on the 4-point, financing, insurance, and vacant possession (aka "get your stuff out by closing; no tenants without your prior vetting/approval, and no commitments to rent are outstanding).

Get out of your way and go get yourself a great deal...and know, sometimes when we lose a deal - it's actually a win.

Best...

Let this drive your decision: what would be the ROI of adding a 2nd floor W/D? What would it be to upgrade the existing ones? If you're not in a high-rental price market, adding the 2nd floor W/D will most likely not get you much in the way of a return. The rent is driven by "market price" - what other properties that are similar to yours are renting for and what the rent price demand is in the market. I've known clients who have added W/D to a unit - and it wasn't the win they had hoped for. Prospective tenants weren't willing to pay more to have it. Some actually prefer (can't imagine this!) going to the laundrymat where they could command multiple washers and dryers to get done faster. And, I guess laundrymats are coming with a whole lot of amenities these days like beer, games, videos...who knew. Upgrading isn't recommended unless your existing units are at end of life or requiring a lot of maintenance. I do think it's great that you have a W/D on site for tenants. Before you make a change, look at your competitor's properties. You may find that cosmetic upgrades are the best return. Hope this helps...

Noooooo.  Port Richey is not a great vacation rental market.  And, it tends to be a lower rental price market as well.  Prices in key vacation rental markets in Tampa Bay have not dropped a cent as inventory is extremely low and demand is high.  Successful vacation rental properties are already booked with guests through 2023's season so it's a good time to make a stronger investment with that cash flow already in wait.  Please don't buy a property for a vacation rental in Tampa Bay based on price. The vacation rental restrictions in our market are tight. Port Richey and all of Pasco have restrictions and running a vacation rental illegally isn't worth the risk.  Best...

ONE.  Just ONE.  When a posting starts out with an aerial shot, the first reaction is "it must be one ugly property."  Videos can be so boring or choppy or soooo long.  Don't oversell or over do it.  65 photos - you're trying to hard.  Keep it simple.  Keep in mind that the average attention span is EIGHT SECONDS - 8.  Make your first photo your best and the second one just as good...that's going for the win in 8 seconds or less.  

Do the vinyl flooring...it's a better move for securing quality tenants and mitigating maintenance expenses that carpet will require.  Walking noise is rarely an issue with tenants from my experience - but loud music, television, screaming, arguments, dropping large objects, barking are the ones that tend to annoy tenants and landlords alike.  A good Addendum to your lease can spell out what crazy isn't tolerated for the sake of "peace in the village."

Hope this helps (and how thoughtful a landlord you are to consider the tenant experience first...that will provide you a strong ROI).