All Forum Posts by: Daniel Netzer

Hi, Does anyone know if it’s possible to transfer a current Airbnb property to a new primary account holder to keep the reviews?

I have management company that I’m parting ways with and I would like to take over the current account. Does anyone know if this is possible?

Personally I wouldn't go below 20% CoC for a STR at the moment. Anything over 50% is a home run and still achievable depending on the market and loan strategy. Example: Buy a 3/3 cabin in the smokies for $650k. With a lot it will rent as a 4/3. Put 10% down - $65k. Should gross around $100k which nets you close to $30k - $35k. General numbers but you get it.

We have done stuff in the La Pine (Remodeledfrom studs a MFD home), New Construction in Three Rivers (Subdivision was Oregon Water Wonderland 2) and in Sunriver, OR (a remodel). I love the area. However; prices are very high there right now, even in the outlying areas. 

I can tell you, Sunriver is 100% set up for STR. They allow guests use of the amenities, etc. with the property owners passes. They also have fractional ownership on condos, etc. so when you see outrageously low prices, that's what it is! It's a great way to get your feet wet, and learn the market there, with less risk.

La Pine is beautiful, but gets a lot more snow than the city of Bend. It's about 30-40 minute drive. There are vacation rentals there, as it's a great area for waterfalls, river, fishing, etc. However; finding cleaners, etc. may be a lot harder. 

Are you planning on building yourself? If so, it's an open book test for a contractors license. If you are planning on hiring subs, you'll need to get licensed as a Developer. They're very strict on that, and you'll get fined, even if it's your own job, and you hire subs. 

My niece is the top agent in Sunriver area at Berkshire Hathaway, @Christine Larsen. She also handles properties in La Pine, Three Rivers, etc., and would be happy to help educate you on the area. She's the one that found all the properties we did in Bend. Her son in law is a contractor, and can answer construction questions on costs, etc. if you're hiring a contractor. 

Quote from @Daniel Netzer:

By the way, will the land be part of your construction loan? My process has only entailed buying the land and getting design/permits/job estimates first. Otherwise, the construction financing process gets dicey. But curious to know if there's an easy way. 

I found lenders that do a 5% one-time close new construction loan. I am still learning about it and going through the process so I don't know yet if I would recommend it, but from what I know it covers most or all of the pre-construction costs as well.

Yes, I have talked with a few local agents and found one group that I like a lot and will be working with.

Typically existing structures are always quicker obviously and cheaper. You can buy a value add property. 

Also, check regulations. You said subdivision? 

Quote from @Daniel Netzer:

Quote from @Michael Baum:

Hey @Paul Sanders, so $250/sqft is pretty great pricing depending on finishes. Seeing as you are building a large place, it would make sense to go with a higher level of finish rather than middle of the road. That is my opinion and it is based on what the nightly rates are of the larger places in the area.

Secondly, if you are doing site prep in May, I seriously doubt you would be finished by Nov. Now I don't know much about the area, but I do know rural, mountain building to some degree. I have watched a pretty nice alpine style lake house get built on Lake Coeur d'Alene. It is a bit bigger, I would guess 4k sqft, and it is just about 18 months in to completion.

Now there are some other challenges to building on a lake vs a lot, but I would guess you would miss the 2023/2024 ski season. It could be ready for summer 2024. I would plan for that possibility.

One thing I might do if I was building, I would make each bedroom a master suite. Every bedroom gets it's own bathroom. I think that would drive a higher nightly rate.

How is the Lake Coeur d'Alene area these days? I've always loved that area, but summer seems too short! That seems like a challenge for an investor as well. 

I don't think it is a challenge. You need to plan based on the limited season. We are pretty active from May to Sept. We get some bookings for Thanksgiving and Christmas-New Years.

If you were going to buy a lake front property now, no way it will cashflow.

Hey @Paul Sanders, so $250/sqft is pretty great pricing depending on finishes. Seeing as you are building a large place, it would make sense to go with a higher level of finish rather than middle of the road. That is my opinion and it is based on what the nightly rates are of the larger places in the area.

Secondly, if you are doing site prep in May, I seriously doubt you would be finished by Nov. Now I don't know much about the area, but I do know rural, mountain building to some degree. I have watched a pretty nice alpine style lake house get built on Lake Coeur d'Alene. It is a bit bigger, I would guess 4k sqft, and it is just about 18 months in to completion.

Now there are some other challenges to building on a lake vs a lot, but I would guess you would miss the 2023/2024 ski season. It could be ready for summer 2024. I would plan for that possibility.

One thing I might do if I was building, I would make each bedroom a master suite. Every bedroom gets it's own bathroom. I think that would drive a higher nightly rate.

I would encourage you to buy your investments and rent your vacations. If you like the PNW or Bend, just go vacation there and get a better performing, lower hassle factor asset in another market. Or if you want to live there and possibly house hack, then do that, but don't invest in a place because you like it there. 

Context - I also live in Texas and bought a property in the PNW to rent and use. It has been my worst performing investment. It works just fine, is nothing catastrophic, and we are holding on to the place. It's also fun to use in the summer, but it would have been far better to just rent something for a month when we want to get away.