TLDR: They don’t add as much value as they cost, they can make sales harde, if you charge the tenant for electricity there’s no benefit to them, if you don’t, there’s no benefit to you.

When the appraisers came in, we did multiple adjustments.

You already get the benefit one of two ways.

EspinozaSellerManuel EspinozaMortgage (10/26/2007)Mortgage Date10/26/2007Recording Date11/05/2007Mortgage Due Date12/10/2022Cash PurchaseNoDocument Number1188950Mortgage Amount$15,824Mortgage Loan TypeConventionalMortgage Deed TypeDeed of TrustMortgage Term15 YearsSecurities CategoryCNV, Fixed, Other Subordinate Loans, ConformingMortgage (09/06/2006)Mortgage Date09/06/2006Recording Date09/14/2006Mortgage Due Date10/01/2036Cash PurchaseNoDocument Number1221521Mortgage Amount$200,250Mortgage Loan TypeConventionalMortgage Deed TypeDeed of TrustMortgage Term30 YearsSecurities CategoryCNV, Adjustable, Refinance, ConformingPrevious Ownership (10/26/2005)Date First Seen As Owner10/26/2005Document Number1654183Sale Date10/26/2005Recording Date11/01/2005Ownership RightsSeparate PropertyOwnership Relationship TypeMarried ManAbsentee IndicatorSitus Address Taken From Sales Transaction - Determined Owner OccupiedDeed Securities CategoryInterfamily Transfer, Resale, Residential (Modeled)Universal Land UseSingle Family ResidenceProperty IndicatorSingle Family Residence/TownhouseResale New ConstructionResaleResidential Model IndicatorBased On Zip Code and Value Property is ResidentialTitle CompanyTALON GROUP TITLEOwnerManuel EspinozaSellerLisa A.

Quote from @Seth McGathey: @Ned Carey what would be the benefit of a second mortgage over the HELOC besides more time to pay it down?

You get the benefits of reducing your housing expenses, buiding equity, landlording, learning to deal with various people and much more.

The existence of a contract is actually a defense to an unjust enrichment claim.The plaintiff here was defrauded (albeit by a third party) into providing a large benefit to the property owner.

Do you think inventory will open up due to sellers offloading their properties because of their rate adjusting to the present day 7%?

I’ll consider adjusting the dog policy and check-in time as well. 

We use PriceLabs for dynamic pricing but he said a lot of things have to be manually adjusted in order to be a top performing STR - the pricing needs to be a lot more dynamic.