All Forum Posts by: Chuck Kramer

@Jason S.My auto correct must have kicked in. Intuit has a service called It’s Deductible and is usually free. It uses a large database to estimate value of donated items. 

It’s widely report d that people substantially underestimate the value of donated items. This service gives you the value (after a few questions) and is solidly accepted by IRS and it is supported by empirical data. Therefore you get maximum value for your deduction.

Bankers here really seem to prefer to deal with locals. Recommendations I have made have all said the same. However, there is a company in Knoxville that severa people have used - Mortgage Investor Group. 

I haven’t used them myself so cannot couch for their work.

I use EVOLVE to handle the bookings and a local cleaning/maintenance company that is an EVOLVE partner to handle everything during the guest's stay so I don't get those late night calls. It is fairly hands-off. But, with my own character, I travel here about every 3-4 weeks and do some work in/around the cabins myself. It also gives me a chance to check-in on the quality of care the homes are getting.

Welcome to Sevier County! Going with a local company can take some of the tasks off your shoulders and make it truly passive, but it likely will not perform even close to what you could do by listing it yourself on AirBnB and VRBO (or EVOLVE which does both). The local companies take hefty fees. On the other hand, they handle all the sales and lodging taxes and pay the TN 1.25% Gross Tax and the local gross taxes. You just have to decide in the long run what is more important to you.

Agree with Lucas. But I will add that I have had luck in several regions with selling appliances and furnishings on Facebook Marketplace. Other than that, be sure to use ITS DEDUCTIBLE to get your maximum value from donating stuff.

It would also be important to see what the building's insurance does and does not cover. As a "sublet", some policies may exclude you. Just be sure to check.

@David Gaudet My strategy has been pretty simple for the E TN area; I check the MLS every night about 6pm to catch new listings (most seem to go up at the end of the business day), and I have befriended some local agents who keep me informed of off-market and upcoming listings they hear about. The last 2 that I bought were a 5 BDRM SFH for $278K and another for 315K. I put offers in within minutes of going live and presented my financial prequalifications. Offers were accepted within 12 hours in both cases.

You can also find some older listings that are getting a bit "stale" at around 100+ days. At that point, and given the time of year, some owners may be willing to accept substantially less. Before offering, look up the property in the local tax records to see what the owners paid for it and when. After all, you aren't going to get someone to sell it for a loss (probably) so need to know that as well. My 2nd house was listed for $585K in June 2017. I offered $500K in September and it was accepted. They were using a local cabin company and had a really weak looking holiday season so were going to have to carry it for a few months. I noticed they paid $385K for it in 2012, estimated their mortgage payment, and made an offer that would put money in the pocket plus alleviate #10-12K of mortgage payments during THEIR slow season. I then had it listed 1 day after closing and did not have an empty day from Nov 12 to Jan 23.

That makes perfect sense. You can find condos and such in E Tenn (Gatlinburg/Pigeon Forge) as well. They tend to be in nice areas with good views and rent pretty well. Just be sure to ask questions about renting them out. There are a few that require you to use their own rental services as opposed to doing your own AirBnB/VRBO rentals; avoid those. 

Many elderly visitors and families with young kids like condos for the pools, flat parking, and easier access. I am guessing you are looking at a 2 or 3 bedroom model, which there are some on the market. Many also have fireplaces too.

The question of using an LLC is better answered by YOUR landlord. Many won't lease to an LLC and, even if they do, they will look for a personal guarantee as well negating the main reason to use an LLC.

But, if you find the rare one that will lease to an LLC, you will want to go that route for asset protection and the tax advantages under the new tax bill. Nevada is a good state for that and you can probably do the filing yourself without needing one of the online services.

Good luck with your plan. Getting a lease that lets you sublease will probably be a challenge.

I've got the Schlage Z-Wave Connect locks on my STRs and they are working well. Takes just a minute to set new codes and can easily create codes for maintenance/cleaning/delivery people and then see when they arrive.

I also put lockboxes at each property for the rare case where batteries may die or power is out.

You can get them on Amazon or on eBay and are often on sale. I think I ran about $120 each for the locks and another $60 for a Wink z-wave hub.