All Forum Posts by: Chase Hoover

Guess I'll chime in before this post gets removed - Broker here in Shenandaoh Valley VA with 40 keys and growing (mostly boutique inns).

Had the same thing happen about 2 months ago.  We made an offer based on the real value of the house (albeit well above asking with a solid appraisal coverage), but unfortunately they ended up suckering someone to pay what they wanted.  People are ridiculous.  I absolutely wouldn't pay the "extra" $100k unless it's really a home run deal.  Be patient.

The best investment you can make is hiring a real estate specialized CPA to file your taxes and provide quarterly or bi-annual strategy sessions.  Good ones are not cheap, but they'll be able to save you thousands by leveraging proper deductions, depreciation, etc. that you likely would miss out on if you or a budget tax preparer file your taxes.  Build a team - who, not how!

@Chris Ritter You're the man!  Thank you and congrats on an AWESOME investment!

If you plan to do some or all of the work yourself, building will obviously be cheaper.  If not, buy turn-key prefab.  The cost of mobilizing plumbers, electricians, carpenters, etc to work on a tiny home will far exceed that of the in-house factory labor of the prefab companies. 

You touched on it, but I'd draw out every room's layout and dimensions in case you need to get new furniture.  Congrats on the investment!

@Oniel Samuel How are you locating these properties to acquire? 

Sorry to hear about your troubles, I've had the same happen to me in the past and it's beyond frustrating.  Lesson to anyone reading - avoid residential neighborhoods for STR!  As @Luke Carl said, invest in STR-friendly vacation markets. Residential neighbors will make your life a living hell.

That all being said, you can a) continue doing what you're doing and deal with / ignore the crappy neighbor, b) do whatever you can to win your neighbor over by meeting with him face-to-face, make him feel heard and important (chances of success are slim), or c) cut your losses, sell, and find another location.  Unfortuantely there aren't many in-between options. 

As others have mentioned, this is defined by your local jurisdiction and varies widely.  The quickest way to figure this out is to give your local planning/zoning office a call and ask them to define the zoning ordinance, and ask them if there is any way to achieve your strategy.  If the answers are not favorable, it's in your best interest to explore other rental strategies or locations.  

Second what @Luke Carl said - a property management business should have a property management agreement.  If you're the one having to type this up, I'd maybe look for another company. 
Percentage is based on their roles and responsiblities.  If they're just managing the bookings and listings, around 10%.  If they're doing everything including coordinating housekeeping, maintnenace, accounting, etc., industry standard is 20-30%.