All Forum Posts by: Shannon Smith

We are buying with a second home mortgage. We intend to use the home personally when we can but primarily for STR. Our plan was to quit claim deed the house from the bank to an LLC after closing but we know there's a risk the bank could call the loan if they found out. Do you always put your homes into LLCs? Has anyone ever heard of a bank actually calling the loan over this…? thank you.

Quote from @Luke Carl:

Multi-family short term rental is also k Jen as a hotel. 

I think what you’re talking about is called co-living. It’s very common in Europe. 

I guess it’s like a hotel in a sense but without all the amenities lol. I’m concerned people may be bothered by sharing a roof / hearing footsteps, and I’d have to figure out how the backs yard will be shared, etc. but i suppose if guests know what they’re signing up for…right now the 1 bedroom apartment Airbnb listing states that the owners live upstairs and it still books out and does very well. 

Quote from @Michael Baum:

Hey @Shannon Smith, ok, so they are full apartments? Bathrooms, kitchens etc?

Where is it located? What will bring people to the area?

This might do almost as well as a regular LTR with much less headache. Have you done a comparison?

Yes full apartments. Vermont. not great as LTR. But very lucrative for STR. We have another STR nearby

Does anyone have a multi-family Airbnb (units within one house?) I am looking at a house that’s a converted single family. It has two 1 bedroom apts on first floor and one 3 bedroom apt (2nd and 3rd floors). The current owners occupy everything but one of the 1 bedroom apartments- which is on Airbnb and it currently grosses nearly $40,000 a year. The house is selling for $599k. Taxes are $4200 and I’d use the house with my family to vacation when it’s not rented during low season - so I’d get a 10% down second home loan. The mortgage all in, would be about $4200/month. This deal seems like a no brainer based on the fact that the income from just one of the units would cover 80% of our mortgage for the year. However, my questions revolve around managing multiple guests under one roof - I’d love to chat with anyone who may have hosted a multi-family on Airbnb. Thank you. 

I have one STR myself and looking into another - I have an investor who wants to put up the 20%-25% down payment and have an equity stake. Now this same investor also wants to be a silent partner in terms of the management and running of the STR. He wants to give the money to start this business and then collect ROI on the cash flow. He would be putting up the initial cash to purchase and I'd be doing all the work to make it successsful. Would anyone be willing to give advice on how the equity percentages would be structured? Should the house be in both of our names? I'm excited to have an investor and no personal money OOP up front but I need to make sure the equity is fair given I'll be doing the long term heavy lifting to bring in the cashflow and success. Any advice would be helpful. Thank you.

Mountain market is very lucrative 

Quote from @Paul Sandhu:

Who will spend $100 a night to share a 5 bedroom house with strangers?  Do you even know how to clean and restock the place between turnovers?  Shaking my head on this deal.

I should have explained it better. The house is a 4 bedroom with an additional 1 bedroom apartment. Off the first floor. The 1 bedroom apartment has been rented for a year on Airbnb and brought in over $30,000. The main house has been occupied full time but we would STR that as well. 

We have $100,000 savings in the bank. We found an amazing and unique $500,000 house with 5,000 taxes. We can put 10% down and with closing costs spend about $75,000. We will easily spend the remaining $25,000 in misc furnishings, paint, etc. We will have to live off of our checking account and the income from this house for one year until we get a bonus check from work. This house is already generating $3,000 per month on just 1 of the bedrooms in a 5 bedroom house. I feel like it’s such a great investment cash flow wise so we shouldn’t pass it up…but I’m super nervous given we’d be spending all of our savings right now. What would you do?