All Forum Posts by: Carmen Costescu

@D'Andre Byers

I know this is probably not what you want to hear but I would question your decision to get married if your fundamental financial values differ that greatly. I know things are probably exciting and new now but keep in mind that you’ll need more than attraction and hobbies in common to sustain the marriage long term. Finances/money is the number one cause for divorce. Wishing you the best

I think it's always a good time to invest. I bought my first property in 2008 when we had the big crash and EVERYONE told me I was crazy (they still tell me that.) From that one property I added a guesthouse and househacked the main house to do STR and now net profit over $100K a year from just that one property. Not bad for one property that I invested in at the "worst" time possible.

I think those who wait for a “good time” to invest will miss the boat as you should always be investing in real estate.

@Michael Greenberg Thank you for feedback. I know it’s a very new and progressive business model so there’s not a lot of familiarity with it but I definitely would appreciate more information if you come across it. 

I would only be interested in selling it together as a package (house and business) since I don’t know how else it would work. 

@Michael Greenberg@Benjamin Vail This discussion definitely interests me since I’ve thought of this scenario quite a bit.

I have a SFR with a permitted guest house and the "business" as a STR brings in about $125,000 a year profit. I am booked at 97% occupancy year round due to being in a desired location in SoCal but I have thought of selling down the line someday and not sure how I would structure the sale since there is SO much value in the business. The house itself is almost an afterthought. It would be guaranteed net income of $125k+/year.

I don’t suppose you can make a sale of two separate sales? Sell the business separately and sell the house seperately but to the same buyer. Generally speaking most businesses will sell for 2-6x it’s profit so technically I’d like to sell the business for let’s say conservatively $500,000 ($125kx4) AND sell the actual house for the current market value of $700,000. 

Any thoughts? I feel there’s a market for this situation and hope there’s a reasonable solution. 

Thanks

I’ve always wondered about this as sometimes I consider selling one of my STRs. Did you list property way above market value because of the business component of the str? If so, how much higher. Also if you’re selling with reservations in place that means you’re also selling your account on Airbnb? 

@Michael Nelson

Thanks for reply but I think you missed my point. It’s not about nickel and diming it’s about potentially coming up on way more searches and getting more bookings if you’re listed at let’s say $128 as base price that will appear on searches (+guest charge of $10/guest up to 9 additional guests=$200) as opposed to coming up on searches as $200. I feel your target market now can open up to a couple who’s spending limit is lower and would otherwise not have paid the $200 a night but can book at $128 (+10)

Thoughts? Been doing this 6 years very successfully in SoCal market with 5 rentals and this is something I always struggle with

Hi. New to this forum but experienced in STR's. Just curious because I'm conflicted and I go back and forth on this often:

Do you prefer to charge a flat base price per night and not mess with guest count or keep base price lower to attract more guests but charge extra per guest?