All Forum Posts by: Anthony R.

It's actually higher than that, $96,000. You're not wrong in your point. But I also pay lower property taxes ($800/yr) and have half- and million-dollar homes all around me who pay a lot more than me over 20 years. And very likely more for insurance (mine is $500/yr).

If average property tax is $2400, less $800 for mine, that's an extra $1,600 yr x 20 years = $32,000
If home insurance is $1500, less $500 for mine, that's an extra $1,000 yr x 20 = $20,000
Annual maintenance on a single family home of 1%, so let's say $5,000 x 20 yrs = $100,000

All I'm saying is that neither is perfect. You're also right--the wrong HOA or a changing HOA can make or break the investment. But other factors can affect a single family home values too. Both have risks and both have costs. I'm simply saying some are more obvious than others.

Not to outright disagree with the previous post, but to present another perspective: Do condo fees really cut into cash flow? Well, does a new roof? Exterior paint? Lawn care? Termites? Foundation or crawlspace issues? For owners/investors in single family homes, those are all maintenance items that need to be planned and budgeted for. For a condo owner, the costs may be the same over the life of ownership, but the difference is: the condo owner doesn't have to worry about those concerns. Ever. That's what the HOA fees are for.

I've owned two single-family homes in my life. I don't enjoy yard work. I dreaded the day I'd have to spend $8k on replacing my wood fence (sold the house before that day came). I once spent thousands on landscaping only to watch it die in a drought within a year.

I have lived in a townhome community in the past and now a single-story condo community for the last 7 years. I have no exterior home maintenance cares. My HOA fees are high for my area at nearly $400/month. Do I wish they were lower? Sure, but the HOA wasn't well managed decades ago (before I moved in) and they didn't raise rates to keep up with expenses and inflation. But they've gotten back on track. Still better than the $800/mo HOA/Lot fee of a guy I know in New Jersey in a mobile home park. (I have no idea what he gets for having to fork over that money, btw.)

Make sure you read the bylaws and covenants carefully. Don't glaze over at the boring language. It's on you to do your DD and know what's in them. And review the financials. Do they have enough reserves? Ask neighbors and the Board if they're expecting any assessments.

Yes, it is possible a condo will hurt cash flow, but so will owning too big a home or not putting enough down, or other single-family home expenses over the long haul.

"if you follow social media you may not start any business at all."

If I put that on a meme with Warren Buffet's face as if he said it, it would get half a million likes and shares. Such a great comment. So true. Thanks for saying that @Carlos Ptriawan.

For $200-300, it's money well-spent. You'll either come away with knowledge about a repair that may be needed or with peace of mind that the fireplace is in working order should you later decide to offer it as an amenity.

Just a random musing…What do you think are, or will be, STR fads?

Personally, I think people will tire of themed stays and magazine-perfect interiors.

I recently posted asking the same basic question. Got a lot of excellent advice on both sides of the question. In the end, my wife and I weighed the pros and cons of self-managing vs paying a PM company. We reminded ourselves of our main goal: We are getting in the STR industry to have a passive income to help build wealth in an appreciating home (hopefully), not to become hoteliers/innkeepers/PMs/hosts. And we can't achieve the passive part if we have to be (or choose to be) active.

As for the 20-25% it costs to do that, well, that's the cost of doing business--or should I say, of not doing business. :-)

I'm not a lawyer and never even played one on TV, but... I think the key is digging into what legally constitutes a "boarding house" in your state. This website sheds some light on the distinction of a boarding house vs an inn: https://dictionary.thelaw.com/... Of course, I readily admit that's about as helpful trying to self-diagnose via a symptom search on WebMD.

It does seem to my laymen's eye that an STR could, in fact, be thought of as a modern-day boarding house, just with different technology and a remote host. That would not be in your favor.

Definitely something to go to a real estate attorney about, or even two of them to get a couple opinions.

In the meantime, have you searched Airbnb, VRBO, and Vacasa to see if there are other STRs in the immediate area? I recommend searching all three because I've seen where an STR listed on one of those sites, but not the other two.

Robinson Crusoe is a thought-provoking and adventurous tale of ingenuity and intrigue, and a literary classic. I love it.

 Hi Paul. I've read your "26 weeks" rule of thumb on a few posts in my research. Is that a common knowledge rule of thumb, or something you came up with? I'm just wondering where the math came from? Am I being a dummy here? If rent is $2,000, then six months' full rent would only be $12,000. Thx!