All Forum Posts by: Bonnie Low

Welcome Cyndi! Are you managing some MTRs in ND now? How's that going?

 Just state in your marketing or listing that the other side of the unit is rented out for midterm stays of 30 days or longer. Shouldn't be a problem.

If a permit is required I absolutely would not list it before then. Big jurisdictions are going after properties that are unpermitted and the fines can be substantial, as can the penalties. Marketing it as an MTR might be a good alternative so long as Sacramento doesn't also regulate MTRs.

Definitely look at your market to see what the competition looks like. Almost everywhere, STRs are becoming extremely competitive. You have to rank at or near the top to stay booked. If your competition has granite counter tops, you need granite. If your competition has spa-like master bathrooms, you need spa-like master bathrooms. If the competition has hot tubs, you need a hot tub. More and more we're seeing a lot of this evolution spill over into MTRs as well, especially as jurisdictions have banned or restricted STRs and those owners pivot to the midterm rental space. Just really, really understand your market and your competition and make your decisions based on that or set your expectations accordingly.

ADUs are really evolving, especially on the west coast where some states and cities are making it easy to build them and, in fact, incentivizing them because of the lack of affordable housing. While they have historically been underappreciated and de-valued, this too is changing, particularly as new loan products are being released specifically for the purpose of funding ADU construction. Appraisers have had to learn how to value them and, as such, we're seeing a real change in thinking. Overall, Dan H's assessment is probably correct today. But this space is changing rapidly and in jurisdictions like San Jose where housing is scare, expensive and government entities are motivated to do something about it, I predict we'll see appreciation and other key metrics play out in favor of properties with ADUs in the near future. No one knows for sure, but this is my speculation.

Furnished Finder is evolving away from being solely focused on travel nurse housing, but it's still the leader in this space overall. Check out their stats page on Wichita so you can see who is searching, how many units are available, pricing and then do a property search to see what the competition looks like and how full their calendars are. 

https://www.furnishedfinder.com/stats?ci=Wichita&st=Kans...

 Very solid advice. Don't go cheap overall. Invest in good quality, durable key pieces like beds and couches. Avoid most IKEA products (though I do have a couple of bookshelves that have stood the test of time). And outdoor amenities will really help your listing standout.

If you have the ability to do it now, do it. I completely disagree that able bodied people are "turned off" by these amenities and if they are, how sad is that. Nowadays, design is so advanced you'd often not even know it's built to be accessible. That said, there is a considerable lack of accessible properties everywhere and there definitely IS demand. I have a vacation rental in North Carolina and I'd say at least once a month I get asked by someone looking to book whether or not it's accessible. And while it's not currently, this is something my husband and I had talked about doing and were planning to do before (ironically and sadly) he got very, very ill. After he became completely paralyzed, I found myself wondering if we'd ever be able to use our own vacation home because it wasn't accessible for him and it made me realize just how limited and unwelcoming the world is for people with disabilities. In the midterm rental community, it is regularly discussed how frequently people inquire about accessible properties, particularly in the highest end insurance placement niche where there is, indeed, a price premium on accessible properties. Personally, I'm sick of the "what's in it for me" mentality. You can be a business minded person and someone who wants to provide opportunity for others. The two can and should co-exist. It sounds like you're at a point in your project where you could make these modifications in a cost effective manner. I commend you for considering that. While few people will ever tell you they passed on renting your property because they didn't like the accessibility features, you'll know for sure when someone doesn't rent it because of the lack of these features.

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.