All Forum Posts by: Bonnie Low

I've looked all over Ohio and am finding true cash flowing properties scarce. Sure you can get relatively cheap properties in Toledo and Cleveland, but at today's interest rates they'll be difficult to cash flow despite what your analysis shows on paper. Older, cheaper properties in C & D class neighborhoods are notorious money pits. Maintenance, repairs and turnover eat up the slim cash flow and then some. Of course, if you can buy at a steep discount, get favorable interest rates and put a lot more down, you can make almost anything cash flow. I'm not negative on these areas. But using a HELOC is a risk because a) the liability is against your primary residence and b) current interest rates on HELOCs, which typically adjust after the initial term, are anywhere from 8-12%. You'd have to be assured your return is greater than that just to cover you HELOC payment. If I was going to use a HELOC for investing (which I've done several times), I'd buy a vacation rental or multi-family in a B class neighborhood.

I love the San Juan mountains but I don't know if you can get something in your price range. I have a cabin in western NC and love it but it is humid in the summer. Probably less so up towards Banner Elk and Beech Mountain. I'm not seeing any of the Western NC markets except Asheville itself be hotspots for MTRs, though. And Buncombe County (Asheville) is on the verge or may have already banned STRs. There are a lot of under the radar markets around the Great Lakes. Have you looked there?

 It depends on what you mean by tenant tracking. Are you talking about the vetting and lease up process or do you mean keeping track of tenant payments and security deposits? I use a combination of tools. I just haven't found one yet that does everything I need it to. For vetting and lease up I use Keycheck or TransUnion. They're very similar. For lease creation I use Avail. I've used Rocket Lawyer but don't find it as user friendly or as easy to edit so I prefer Avail. For receiving security deposits, tracking & receiving rent payments I use Baselane. I love Baselane's "Amazon-like" tracking feature where I can see when a payment is initiated, when it's process and when it's received. It's a super clean interface and leaves no doubt as to the status of payment.

Hi, Nelisa. I have a small portfolio of LTRs, MTRs and one STR. Until about a year ago we were using a bookkeeper to manage our books in quickbooks. It was just too cumbersome for us to do ourselves. I had wanted to find something simpler for a long time. I also needed to set up some bank accounts for our LLCs so in the process of doing that I ran across Baselane, which is a banking and bookkeeping platform. I had looked at some others but I ended up going with Baselane because it gave me the combination of banking, bookkeeping and tenant management I was looking for. I'm very happy for it and (bonus!) I was able to let our bookkeeper go, saving over $500/mo in the process!

 You're very welcome! I truly believe one of the best way we can add value to others is by sharing our trusted networks ; )

You're very welcome

In my opinion, this largely comes down to how you or your parents will be filing your taxes. Assuming one of you will be claiming this as business income, you should have a separate business bank account and here's the relatively short answer why. 

If you're declaring the income, you also want to be able to declare the expenses and depreciation. Since you are taking on additional liability having tenants in place, you're probably going to want to update your insurance policy and put some sort of asset protection in place - most people use an LLC for a small portfolio. If you set up an LLC - or any business for that matter - it's imperative that you keep personal and business finances separate. In the case of the LLC, if you commingle funds, you essentially wipe out the asset protection of the LLC. And, as others have mentioned, I believe in most, if not all states, you're required to hold security deposits in a separate bank account. So for all these reasons, I'd set up a separate bank account.

As @Allen Duan mentioned, it can be tough to get traction with insurance placement companies if you only have one property but that shouldn't stop you from listing with them anyway. It's a good use of your time and you want to be in their databases. I also recommend you look for someone in your area who is brokering properties for insurance placement companies. I know we have several of these companies on the west coast and I'm sure you have some in CO as well. I know Craftsman Homes is doing this in CA but am not sure how far their reach is. Perhaps Erin Spradlin or James Carlson know of someone in your area. 

 I recommend you connect with @Allen Duan.

I strongly recommend @Allen Duan. He's an experienced MTR host and PM and is in your market!

Damage to furnishings and other belongings is always a possibility in an MTR, just as it is in an STR. Your deposit should be enough to cover most common damage. It usually comes down to the type of renter you get. I find families with children or groups of adults staying at my STR do more damage whether intentionally or accidentally than my longer stay midterm guests. I don't have specific language in my lease regarding damage to furniture, but damaged furnishings are mentioned as a reason to not receive a full security deposit refund.

As for cleaning supplies, I equip the property with a full set of cleaning supplies: vacuum, broom, mop, toilet cleaning brush, scrubbing sponges, and full containers of multi-surface cleaner, floor cleaner, Soft Scrub, and toilet bowl cleaner. I provide a small pack of dishwasher detergent and a small bottle of dish soap. I find the supplies usually get used and, to me, that's money well spent if my guest is keeping the property clean. For paper products I provide 2 rolls of paper towels, a small roll of trash bags, and a 4-pack of toilet paper. You can find a happy medium between being stingy with products and spending a fortune.