All Forum Posts by: Pedro Machin

We've developed short term property management software based on automations taken from guest messages. Currently I only reply to well less than 10% of guest messages.

@Ashish Wa You have to be careful with local laws but ESA is definitely a red-flag. ESA's generally are not service animals and these are generally fake certifications that are abused by people to get free accommodations for their pets. Unfortunately it puts real Service Animals used legitimately under scrutiny as well.

@Ramy Mosbah Well, we've built an in-house PMS built around AI messaging that uses other AI's but also chatGPT. It's helped me to actually turn off my phone at night and not dread calls in the middle of the night when guests forgot their code.

We not only reply to messages but take actions like setting locks, checking your calendar for availability, contacting repairmen directly, etc.

Here's a recent reply for an early check-in reply in my personal account.

https://ibb.co/gv0tY16 (early check-in reply after checking calendar. We also recently added an early check-in upsell that checks for reservations checking in today with no same-day check-out and proposes an early check-in).

@Mohit Arora to gain some piece of mind in this same situation, I drafted a "Holding Deposit Agreement" document that is entered between the potential tenant and I.
The purpose is to use the deposit to hold the rental until the lease signing and transition this Holding Deposit to a Security Deposit once the lease is signed and all other move-in funds are collected.
You can message me privately and I can send you the doc I drafted.

@Eli Joffe the most general but applicable advice in your situation is to start focusing on high cash-flow properties with low equity growth potential in the beginning in order to have the cash to boot strap.
Once you have a few properties under your belt, then start phasing in nicer homes which tend to be lower cash-flow with higher equity growth potential
The former helps you boot-strap using more labor and the latter helps build wealth more passively and with less tenant struggles.

@Simon W. @Travis Andres @Brian Malavsky If you're looking for AI messaging, my team has developed an in-house PMS that is now public called Hostvana (hostvana.io) who's core competency is messaging (along with free lock integration and other features) and is more advanced than Hospitable's for a very affordable price.
Here are some recent replies in my personal account inbox:
https://ibb.co/nk8KWbR (cleaning fee policy question)
https://ibb.co/sgP0qmr (parking question and check on status)
https://ibb.co/HCKVPd8 (random question answered with previous context)
https://ibb.co/gv0tY16 (early check-in reply after checking calendar. We also recently added an early check-in upsell that checks for reservations checking in today with no same-day check-out and proposes an early check-in).
@Will Boller We also generate a direct booking site for free

You are welcome to message me privately if interested.

Thanks for your answer Ashish. I bought the property 3 months ago so the value when I purchased it should be close to the FMV. The "Market Value" in the 2021 Column in the Tax Appraiser website has a value of $166,080. There is however no indication of land value in the tax appraiser site so I don't have any other way to calculate a ratio for the land. I think the assessed tax value never took into account that the property had a large lot and was simply valued like other homes with standard .2 acre lots.

Hey guys!

I recently bought a .47 acre lot with a house on one side of the lot for 200K. A developer is interested in buying .36 empty acres of my lot for 150K (I want to keep the remainder acreage with the house). How much would the basis of the .36 section be for capital gains?
There are various approaches I can take:
1. According to the IRS (https://www.irs.gov/publicatio...) under "Subdivided plots". I can get the basis value by: "To determine the basis of an individual lot, multiply the total cost of the tract by a fraction. The numerator is the FMV of the lot and the denominator is the FMV of the entire tract." I paid 200K for the whole lot and the developer is willing to pay $150K for the subdivision. Assuming what I paid is considered "Fair Market Value" (the Market Value labeled in the property appraisers office for 2021 is $166,080): $200K x $150K/$200K = $150K which means I would not realize a capital gains.
2. Ignore the house and value the .36 acres proportionally to the total. So Value = (200 x .36)/.27 = $153.19K. Again not capital gain realized.
3. Trying to get the FMV of empty land in the area, a lot 2 houses down sold for $85K for .20 acres. If I apply that proportion to the land I am trying to sell, it values it at 153K.

Two questions:
1. Are the above approaches legitimate even thought they essentially imply that I got the house for "free" given the price of land in the area. I could arbitrarily assign a value of say 80% to the house and 20% to the land relative to what I bought and then pro-rate the 20% but that doesn't seem inline with the prices for land in the market.

2. If I do take a basis of 150K for the large subdivided lot of empty land and don't realize capital gains on it, does that mean that the remaining smaller lot with the house now has a basis of 50K when I go to sell it?

Thanks in advance!
Pedro

13% ROI Actually

Have plans drawn up for a Duplex on a lot I own in Melbourne, FL 5 minutes from the Beach. Each side will be a 3/2/1. Looking for either straight financing or a Partner to supply financing. Approximately 10% ROI (profit not revenue) in Partnership situation. Contact me privately for more details