Should I air BNB until a house sells

[Jennifer Roof]

I am about to buy my first flip house. I live near Pinehurst, NC and several famous golf courses. One is the location of the 2024 US Open. With houses sitting on the market longer, I am thinking of offering the house as a short term rental until it sells. I am thinking rent Mon- Fri leaving the weekend free for the realtor to show the house. I have taken into consideration extra repairs that may be needed due to renters. Also will verify with HOA laws before purchasing. What is your opinion of this approach and is there anything I should keep in mind before moving forward? Thank you so much for your time.

[Kevin Sobilo]

@Jennifer Roof, do you think this is a flip that is in danger of failing? Is that why you're thinking about this.

Most times, when someone is thinking about a flip their goal and expectation is for a relatively quick sale. The cost and work to furnish, decorate, and outfit a unit with the necessities to be used as an STR would only make sense if you think this flip is in serious trouble and likely won't sell for quite a long time.

Also, doing STR is a specialty. To do it well you want to develop your own processes for dealing with every aspect of that business. Not something you're likely to do well unless you already have experience doing it on other properties.

[Jennifer Roof]

Quote from @Kevin Sobilo:

@Jennifer Roof, do you think this is a flip that is in danger of failing? Is that why you're thinking about this.

Most times, when someone is thinking about a flip their goal and expectation is for a relatively quick sale. The cost and work to furnish, decorate, and outfit a unit with the necessities to be used as an STR would only make sense if you think this flip is in serious trouble and likely won't sell for quite a long time.

Also, doing STR is a specialty. To do it well you want to develop your own processes for dealing with every aspect of that business. Not something you're likely to do well unless you already have experience doing it on other properties.

Thank you the reply. I don't expect it to fail and I am planning for a fast sale. However as this is my flip.  For my own piece of mind I am thinking of this as a back up plan if it takes longer than 30 days to sell. 

[January Johnson]

STR is a strategy and an investment (furnishings, learning to self-manage, hiring cleaners, etc.)--not a backup plan. Also, if you're near a golf course and don't rent it out on weekends, you might not have enough renters to make it worth your spend.

Realtors don't just show houses on weekends, either, so I don't think this is a sound strategy.  Either go all in on the flip and sell or all in on the STR, but don't try to mix them.  You will only frustrate yourself. Plus, you'll have to do something with all the furnishings after the sale as well.

[Jennifer Roof]

Quote from @January Johnson:

STR is a strategy and an investment (furnishings, learning to self-manage, hiring cleaners, etc.)--not a backup plan. Also, if you're near a golf course and don't rent it out on weekends, you might not have enough renters to make it worth your spend.

Realtors don't just show houses on weekends, either, so I don't think this is a sound strategy.  Either go all in on the flip and sell or all in on the STR, but don't try to mix them.  You will only frustrate yourself. Plus, you'll have to do something with all the furnishings after the sale as well.

Thank you for the advise. I am glad I asked before buying the first house 

[Jacopo Iasiello]

Hi Jennifer, additionally have a contingency plan in place if the property doesn't sell within your desired timeframe. Consider alternative exit strategies, such as converting the property into a long-term rental or selling to an investor.

[Alyson Gordon]

How does the 30 day selling timeframe compare to the average days on market in your area? I would consider that as you plan for your flip. It may take 30 days to get under contract + 30 or so to close. 

STR is not a quick easy thing to set up but it definitely could be a back up plan if your house doesn't sell in the right time frame. It just going to require a lot more cash to set it up properly so I would consider that up front :)

Best of luck!

[Bruce Woodruff]

What they all said^^^^ STR is not an easy 'let's just do it for a month' kinda thing....

Plus more wear and tear that you have to deal with when it really goes on the market.