All Forum Posts by: Andy Plattner

I was looking at renting bicycles and kayaks to my guests but the insurance to do this was crazy high and not worth it as we are seasonal.  What I do now is leave a few bikes and kayaks at the rental and allow them to use them if they want but it is one less thing I have to worry about.  Guests really dont take care of things.  The bikes are 2nd hand bikes so if they dont work, I dont get the complaints vs. if they were renting them, then the upkeep would be high since the rentals are on the beach.  This kind of adds to their experience of staying in my house.

I was wondering if those with Vacation Rentals or those wanting to do vacation rentals, would post an analysis of the ROI, Cash on Cash, etc and a break down of expenses ie Mgt fee, HOA, Utilities, Cleaning, etc. I am especially interested in seeing what other rentals are doing after a year of operation.

Luckily I found this out early on but I lost out a month as well.  All other sites do the tax thing but Airbnb does not so you have to include that in your price.  Then you have to pay your local and state.  In Texas, I have to pay the local tax which is 8.5% and State is 6%.  In your case, just take the $1000 and multiply it by .8725 (1-.1275) and that is your rent income and the difference is what you owe in taxes.

What are your expenses?  Cleaning and Management company, Taxes, Insurance, Maintenance, repairs and replacements (hot water heater, destroyed couch), Advertising (VRBO, AIRBNB), Supplies, Utilities (Cable, Elec and gas), If you live far away, the expense on travel, meals etc when you ck on the property, Mort and Interest?

Does the income listed Net or gross?  

I think when ever you factor in those numbers, you should have a good picture.  I have a vacation rental and my expenses run high, and that is because I manage the property. 

Hi.  I am looking to maybe expand into Tax Deed Purchases via auction in our county down in South Texas.  It is my understanding that the minimum bid will cover certain liens ie irs but other liens will fall off such as Child Support or a local contractor since the deed goes to another property owner.  What Liens normal stick with the deed and is the responsibility of the new owner?

What is the purpose of a title search?  it may be expensive to do it at the title company.  Is there a less expensive way of doing it?

Thanks

Andy

Hi David,

Wondering how your partnership is working out, if you have started.  

Dont do it.   It's not worth it.  You will spend more time running and hiding.  I have vacation rentals and have lost a few just because some are going under the table, not charging taxes.  It's better to be up front.

Thanks so much for all the great input and ideas.  What exactly cash for Keys?  Is it sort of buying out their contract?  

The month to month I dont think is going to be an issue but it is the year lease.  I really dont want to mix up tenants just because the lady staying there has her whole family there, who knows how many and the sole bread winner is a house cleaner, cleaning vacation rentals and motels.  I dont think her and her family would match up with my vacation renters and once we fix up the place, I really dont know if they would take care of the place.

I guess I will talk to them and then maybe offer them in writing that they would not have to pay rent one month so they can financially prepare to move to another place.  If that doesnt happen, then I will probably up the buy out.  I know I can rent the place and bring in $60,000 from march to Sept 1.  So I cant sit and wait for them to move.   

Funny story:  My wife and I have run a business for 10 years now employing and contracting with 50-70 employees/contractors.  So I have had to terminate employees many times.  While I hate doing this, this is my business and my job.  But I have never had a nasty termination, for some reason.  We have always left in good terms.  Two years ago I had to terminate an employee:  I told him we could no longer have him work with us, he then bawled like a baby for about 15-20 minutes, and by the time he left, we were talking about how to get great deals on buying welders, we hugged and parted ways.  So maybe I have some charm left. 

I just purchased a triplex, two units having tenets.  The plex is in a nice area but the triplex itself is a bit rundown.  I want to fix up the triplex and turn it into a vacation rental so I will have to evict the tenets, one being on a month to month lease and the other on a year lease.  But I will have to evict, which is a little hard for me to do.  I plan to visit with both of them first and tell them what my plans are and give them a 30 day verbal notice.  I am hoping it will end there.  

First of all, is meeting with them a good strategy to try first? I was thinking of telling them I would give them 30 days to move and I will not charge them rent so they could keep the money to do a down payment on another property.   I dont want to get all legal with them right out of the gate, get on their badside, they resist and then I have legal payments.  The plan is to have the place ready in 60 days and most of the work will be the landscape, relocating outside aircond, putting in a pool, and reinforcing the balcony so most of the work will be outside.  

I bought a 1/2 of a duplex 19 years ago and just purchased the other half in March.  Until This March, I lived in it and then did long term rentals until about two years ago and started using VRBO short term (I am very close to the Beach).  Once I bought the other side (which has a pool, i did not) , I tore down the middle dividing fence, opened up the back yard and now rent the entire duplex (now 6 bedrooms vs 3) to families that want to vacation together.  I entertain big groups such as multiple families and group events (conventions, showers, parties, etc.)  I now own 4 different properties (2 duplexes serving as vacation rentals to one party, one bedroom condo and one long term rental)  but the most successful are the duplexes used as vacation homes using VRBO.  I will not rent the duplexes to two different parties unless it is from Nov thru Feb, which we cater to the retired people wanting 30 day rentals but I will not put two different families sharing the same back yard.  That spells disaster.