Upstate New York Investment Property Turnaround

[Jesse Bull]

I bought a house in Woodstock, NY about 5 years ago.  It was always meant to be a weekend home whose costs I could partly cover through AirBnB...I wasn't as thoughtful or concerned about the annual loss in the early years but now realize it's taking away from my efforts to build wealth - though I don't regret the great times I've spent there with friends over the years.  It's a great quirky house on 26 acres.  I've had about 150 rentals over the 5 years and great reviews on AirBnB.  Generating about $35k-$40k in rental income a year. But the taxes are really high in the area ($15k per year) not to mention high gas and electric bills.  All-in, I'm still losing $20k a year on this place.  I see a path to maybe close the gap by $10k by being smarter on costs, increasing rental pricing, etc.  But struggling to fully close the gap. 

While it may be that I need to just sell the property and reinvest with a real strategy now that this is a focus, I'd love any creative ideas on how to get more value out of this property.  2 thoughts I had: (1) trying to negotiate the taxes down - any tips from people who have been successful here?  (2) the land is actually already on 2 separate tax lots.  Maybe I should consider selling the vacant land on 10-acre lot..or even developing it with a small tiny home or something and selling that.  

Thanks for any thoughts on specific tactics or creative thinking here!

[Luke Carl]

@Jesse Bull My markets are VERY heavy traffic so my brain immediately goes to trying a bit harder to get bookings. Are you managing thing thing from your phone or using a PM?

I’m fairly easily 85% booked year round. 90%+ 10 months per year with Jan-Feb bringing my annual percentage down 5 points. These numbers are self managed from a distance. While I do live near most of my VRs I’m constantly traveling and really have no idea where I’m going to be or when.

There are quite a few fairly easy ways to get more bookings but again the market will only produce what the market will produce and I don’t know the market.

NOTE: 90% of Airbnb is booked 30 days in advance or LESS.

Ideas:

Change minimum night stay (the lower the min the higher the occupancy)

Get a hot tub

Stalk your neighbors and see if they are doing better and WHY

Adjust Pricing (the lower the pricing the higher the occupancy. This is of course a fine line)

Better pictures and more of them (hire a real estate photographer)

Install a mini golf course (Friend of mine did this recently and is killing it. You’ve got plenty of land. Mini golf is just some 2x4s and some AstroTurf. Can DIY for next to nothing)

Try more Platforms (Don’t limit yourself to Airbnb. Try VRBO Homeaway Flipkey Booking.com etc)

Hope this helps good luck!

Typed on an iPhone.