All Forum Posts by: Bryan S.

Hi BP World!

I bought a property in 2020 that has been an Airbnb for the past 4 years. It has gone up ~$300k in value since purchasing.  I'm looking to sell and buy a small LTR apartment complex.  

Has anyone done a 1031 exchange like this? Curious BP's take on things to watch out for along the process.

Thanks,

Bryan

Hey All - bumping this thread / my roof is older than 15 years old [its 18 years old] so now basically everyone I talk to say they can't cover it. 

Only company that could give me a quote is 'GeoVera Holdings, Inc.' but they have a 1* rating everywhere I look. Curious if anyone else is still having this issue.

Thanks!

I’m close to that area and it’s super restrictive and heard of multiple people getting caught getting fined and then the cities cracking down further. 

There are unique properties in the area have it on the deed that allow STR but hard to find.

Definitely do the homework and even in the past 4 years the code has been revamped and been has become more restrictive as more STR have launched. I expect this trend to continue. 

There’s ways to make it work but confirm with the city first and get the overall pulse of when new code is coming out as well 

 I think the photos look pretty good. If get $3k a booking per week and can swap out the photos new photos in two weeks anyway. Let’s say even 25% chance get bookings for the next two weeks, $6K * .25 = $1.5k of value for posting now. 

$1.5k > $0 

I’m going against the grain here as one of the number one principles they teach in finance when I was getting my MBA, the time value of money.

While professional photos may help improve the overall appearance and attractiveness of your Airbnb listing, it's better to list your property with decent photos taken by yourself rather than waiting for professional ones. Here are a few reasons why:

1. Time is money: Waiting for professional photos can take time, which could result in missed bookings and potential revenue. It's better to list your property as soon as possible with your own photos, which can always be updated later.
2. First impressions matter: Decent photos taken by yourself can still give potential guests an idea of what your property looks like, and this is important when it comes to first impressions. Even if your photos are not perfect, they can still convey the general feel and layout of your space.
3. Transparency is key: Authenticity and transparency are important to Airbnb guests. They want to see the real property and not just a highly edited, professional version of it. By using your own photos, you can provide an accurate portrayal of your space, and avoid any potential disappointments or negative reviews from guests who feel misled by highly edited photos.

In summary, it's better to list your property as soon as possible with decent photos taken by yourself rather than waiting for professional ones. While professional photos can certainly help enhance the appearance of your listing, they are not essential to attracting guests to your property.

Here’s a couple ideas…

1. Subdivide the land and sell for quick cash
   Private investors: Network with family, friends, or private investors who may be interested in partnering with you on your STR projects. They can provide funding in exchange for a percentage of the revenue or equity in the property.
2. Crowdfunding: Real estate crowdfunding platforms like Fundrise, RealtyMogul, or CrowdStreet allow you to pool funds from multiple investors to finance your STR projects. You'll need to pitch your project to potential investors and offer a return on their investment.
3. Home equity line of credit (HELOC) or cash-out refinance: If you have equity in your primary residence or other properties, you can tap into that equity to finance your STR projects using a HELOC or cash-out refinance.
4. Commercial loans: Some banks and credit unions offer commercial loans specifically designed for investment properties or multiple-unit properties. These loans may have more favorable terms for investors but may require a larger down payment and higher credit scores.
5. Government programs: Check for government-backed programs, such as the U.S. Small Business Administration (SBA) loans or local development programs, which may offer low-interest loans or grants for real estate development.
6. Construction loans: If you're building new units, consider a construction loan. These are short-term loans that cover the cost of construction and are typically interest-only during the construction period. Once the project is complete, the loan can be refinanced into a long-term mortgage.
7. Joint ventures: Partner with another investor or developer to share the costs and profits of your STR projects. This can help you leverage each other's resources and expertise to grow your portfolio more quickly.
8. Hard money loans: These are short-term, high-interest loans from private investors, often used for real estate investments. They're typically easier to qualify for than traditional loans, but they come with higher interest rates and fees.
9. Delayed financing: If you have the cash to purchase the property outright, you can use a delayed financing strategy. You buy the property with cash, then refinance it with a traditional loan after a short period, usually six months or less. This allows you to recoup your cash quickly and use it for your next project.

I’ve seen mostly VRBO - in some cases in depends on the market. 

Here are a few thoughts to help get bookings:

1. High-quality photos: Invest in professional photography or take well-lit, clear, and appealing photos of your property. Showcase the best features of your rental, including bedrooms, living areas, kitchen, bathrooms, and any outdoor spaces.
2. Detailed description: Write a compelling and informative description of your property. Highlight the unique aspects, nearby attractions, and any amenities you offer. Use clear and concise language to make it easy for potential guests to understand.
3. Competitive pricing: Research similar listings in your area to determine a competitive price point. You can adjust your rates according to season, local events, or demand to maximize your bookings.
4. Regular updates: Keep your listing up-to-date with accurate availability and rates. Make sure to update your calendar regularly and respond promptly to booking inquiries.
5. Quick response: Respond to messages and booking requests quickly to show potential guests that you are an attentive and responsible host. Good communication is essential in building trust and securing more bookings.
6. Encourage reviews: Positive reviews from past guests can significantly influence potential guests' decisions. After each stay, encourage your guests to leave a review on your VRBO listing. Be proactive in addressing any issues or concerns to ensure a positive experience for your guests.
7. Offer extra amenities: Provide additional amenities that will make your rental stand out from the competition, such as Wi-Fi, smart TVs, fully-equipped kitchens, and comfortable bedding. You can also consider offering extra services like airport transfers or local activity recommendations.
8. Engage in promotions: Offer special deals, discounts, or promotions to attract more bookings. You can use VRBO's built-in promotional tools to create and manage these offers.
9. Optimize your title: Use a catchy and informative title that highlights the unique features of your property. Include keywords that guests might search for, such as "oceanfront," "mountain view," or "near downtown."
10. Get social: Promote your vacation rental on social media platforms like Facebook, Instagram, and Pinterest. Share high-quality photos, upcoming promotions, and any local events to attract potential guests.
11. Network with local businesses: Collaborate with local businesses, such as restaurants, tour operators, and activity providers, to create special packages or promotions. This can help attract more guests and promote your rental to a broader audience.

The processing time for a Davidson County, TN Owner-Occupied STR permit application can vary depending on several factors, including the completeness and accuracy of the application, the volume of applications received, and the workload of the permit office.

According to the Metro Nashville Planning Department, the average processing time for Owner-Occupied STR permit applications is currently 4-6 weeks. However, this is subject to change, and some applications may take longer if they require additional review or if there are any issues or discrepancies that need to be addressed.

As for tips to expedite the process, here are some general suggestions:

1. Make sure your application is complete and accurate. Double-check all forms and documents to ensure that they are filled out correctly and that you have included all the required information and supporting materials.
2. Submit your application as early as possible. The earlier you submit your application, the more time the permit office will have to review it before the start of the rental season.
3. Be responsive to any requests for additional information or documentation. If the permit office contacts you with any questions or requests, respond as quickly as possible to avoid any delays.
4. Be courteous and respectful when interacting with the permit office staff. Building positive relationships with the staff can help facilitate the process and may lead to a quicker approval.
5. Consider obtaining signatures for notification from neighbors in person rather than sending certified mail. This may help ensure that your neighbors receive the notification and may also help to build positive relationships with them.