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All Forum Posts by: Sarah Lorenz

Sarah Lorenz has started 39 posts and replied 328 times.

Post: Getting Real Estate License to Pair with Builders License

Sarah LorenzPosted
  • Specialist
  • Ann Arbor, MI
  • Posts 355
  • Votes 191

You do need to have a broker to work under. I can recommend some that work with investors if you are interested. The big brokerages typically take 30%, more or less, so if you have a small volume, you may want to shop around. On the other hand, they offer a lot of support, as well. But I think that builders can sell 5 houses in Michigan without having a RE license. 

Post: What are your experiences with build.com?

Sarah LorenzPosted
  • Specialist
  • Ann Arbor, MI
  • Posts 355
  • Votes 191

I always order my light fixtures through Houzz.com. For some reason I can always find things that are pretty stylish and inexpensive. 

Post: Critique of My Recent Stay at a Vacation Rental

Sarah LorenzPosted
  • Specialist
  • Ann Arbor, MI
  • Posts 355
  • Votes 191

@Paul Sandhu  That sounds like the show opener to me!

Post: Critique of My Recent Stay at a Vacation Rental

Sarah LorenzPosted
  • Specialist
  • Ann Arbor, MI
  • Posts 355
  • Votes 191

@Paul Sandhu Maybe we should set up an exchange--your folks come stay here, and my folks can have a little vaca in The Worst Town. Probably do everyone some good. Hey, maybe we can get a reality TV show out of it. And then I'm going to go stay at @Michael Baum 's place. Sounds like just what I'm looking for. 

@Lisa Graesser If I don't like a place, I just don't give a review at all. I don't have the heart.

@Kathy Hansen That's pretty hilarious, except for the fact that you were in a wheel chair. Hopefully you escaped with out further injury. But I'm noting that trick about watering down the soap and dish detergent. I'll be forcing some appreciation on my next STR with that one!

Oh, one other thing--because we had beds of various sizes, I bought sheets in different colors so that it would be easy to do them all in one load and then find the right ones again quickly. Some people recommend having three sets for each bed, and it's a good idea to buy them all at once so you can still use a flat/fitted if the other one gets damaged. And another good recommendation I read here--put make up wipes or black/gray washcloths in the bathroom so your guests don't trash your white towels with makeup removal. 

Post: Critique of My Recent Stay at a Vacation Rental

Sarah LorenzPosted
  • Specialist
  • Ann Arbor, MI
  • Posts 355
  • Votes 191

I booked a rental at a Northern Michigan lake house recently, and now that I'm an expert, I naturally had much to critique. This was a 5 bed, 3 bath house right on the water, and more of a house-hacking STR vs. a professionally run property. We were staying with kids and extended family. Here are little things that annoyed me and would make me look for something else next time:

Decent kitchenware: when you’re renting a house with five bedrooms, you’re bringing a big crowd and you’re cooking at home a lot of the time. This kitchen was pretty well-equipped, but it had cupboards that were crammed packed with old, scratched kitchenware. The entire set of pans was old nonstick cookware that was peeling and chipping. I was gritting my teeth, thinking about the toxins leaching into my kids' food. It was also hard to keep organized. A few labels in the cupboards would’ve been helpful, and please, just simple stainless steel pans. Plus some plastic cups for kids. We managed to break five glasses while we were there. Oh, and a set of storage containers. When you’re cooking for a crowd, you end up with leftovers.

Locks on the bedroom doors: with a house full of extended family and kids wandering around and changing into swimsuits constantly, it's nice to have locks. That actually work. 

Night lights in the hall/bathrooms: when you’re in an unfamiliar house, it’s good to have a nightlight so kids (or adults) can find their way to the bathroom in the middle of the night. We ended up leaving the bathroom lights on all night long, every night. 

Nightstands: most of the bedrooms did not have nightstands. Very annoying to have to use a slippery folding chair to set my book and glasses on.

Dressers in the bedrooms: living out of a suitcase for a week gets old. If you have to choose between a dresser and a king bed, go for the bed, though. Shelves or cube organizers in the closet would be fine, along with some kind of a bench or suitcase stand. Every bedroom should have a big row of hooks, which makes it easier to stay organized with all of these swimsuits, jackets, towels, etc. And every closet should have a laundry basket so you can stay organized with your dirty clothes, especially with kids' clothes thrown everywhere.

King sized mattresses: this house had one king size bed, and three queen size beds, and two twins. The three queens could’ve easily been kings. It is such a punishment to have to sleep in a queen size bed when you’re used to a king. In the future, I will always be searching for a king size bed as one of my criteria.

Clothesline for beach towels: While I did appreciate that there were a ton of beach towels available, there was no place to hang beach towels, so we ended up doing laundry constantly. The kids would just dump them in piles on the deck, so we'd end up just throwing them into the washer. We must’ve done at least an extra 20 loads because of this. We were also using beach towels as bathmats in the bathrooms, because there were dorky thin rag rugs in there that got soaked every time a kid came in from the beach.

Stocked medicine cabinet: bandages and various over the counter medicines were very helpful to have on hand. We also really enjoyed all of the water toys: kayak, stand up paddleboard, inflatable island, etc.

What are the details you've loved or hated in an STR? Or that you've thought about for your guests?

If you are doing this ASAP, I'd run out and buy as much as possible over Labor Day sales. Or if it's a slow process, Black Friday is fantastic. I would buy furniture, beds and mattresses on craigslist if you can, since no one expects brand new items. You can get very high end things for 20% of retail price if you have the muscle and time. High quality sheets are a must for repeated washings and customer satisfaction. I'd recommend king sized beds in every room possible. I search for that in particular when I'm booking for myself. I only started doing this last year, so I don't have a ton of experience, but I never vetted anyone and had no problems at all. But I was renting a large house for a very high nightly rate. I only used VBRO/Homeaway, and I required an immediate 50% deposit and 50% 30 days before arrival, which was non-refundable. So I was getting a big chunk of change and figured that was vetting enough. Never had any trouble--most people loaded the dishwasher, took out the trash, and left me plenty of high end liquor, groceries, and even a new iron. The other advice above is great. And check out the show Stay Here on Netflix for staging ideas. Good luck!

Post: Investing in SE Michigan (Detroit, Ann Arbor) and suburbs

Sarah LorenzPosted
  • Specialist
  • Ann Arbor, MI
  • Posts 355
  • Votes 191

Given your numbers, you could quite possibly buy a duplex in Ann Arbor with 5% down on an owner-occupied loan, and your monthly housing cost would drop significantly. Then you would have an excellent rental here in Ann Arbor after you relocate.  It’s very easy to self manage here, and I think you would be able to do it from out of state. I’ve found tenants here to be quite easy. There was a duplex in a great location on the west side of town that took three months to sell this summer. That would’ve made a great owner occupied situation. You could have either rented the second unit or used it as an Airbnb. And then on football weekends you could’ve rented your own unit out, too. I frequently see deals with hidden potential like this around town.  Another option would be to buy something that needs work, renovate it before you move in, then move in and enjoy it until you move south. Sell it, harvest that equity tax free, and roll it into your next investment. If you buy and renovate right, you should have the potential to make six figures.

Would you be renting to a high-end clientele, with a high nightly rate? If you’ve done a really nice renovation and it’s a big home, it’s likely. I found that this type of short term renter is very respectful of the property. And it can really generate a significant amount of income. You can always try it and then stop if you don’t like it. I would recommend using HomeAway/VRBO not AirB&B. 

Watch the Netflix show called Stay Here. Take all those ideas about staging and amenities and make sure the place looks fantastic. Hire a good real estate photographer to take really wonderful pictures.