All Forum Posts by: Dan Thomas

@Patricia Andriolo-Bull

Yes, they stated they would not cover the chair.

Yea, not sure how to prove that. We have cold winters in northern NH. We heat and keep the doors closed and don't have issues normally. I guess I can't wrap my head around the fact that anyone can make an argument as to how the doors and windows being left open was not the root cause of this issue. Seems clear as day to me....

@Bryant Xavier

Yes we provided documentation from the property manager who responded stating that the cause was the open doors and windows...didn't seem to help.

First time in 3 years we have had to file a claim with over 150 airbnb stays. Guest left all windows and door open in our cabin in -15 degree weather when they left causing a frozen pipe. Left the place destroyed and broke a chair. Airbnb claimed the pipe was an "act of god" and isn't making her pay for the broken chair. I know they are crazy guest friendly but this seems over the top.

Guest didn't deny it....responded with "I payed the cleaning fee, why would I clean up?"

Frozen puke in the toilet etc.

Any suggestions? We asked to escalate but haven't heard back yet.

Not too worried about it.  The housing market in my area has never settled down.  I would not give notice to leave somewhere until I had a place lined up.  It does seem odd they would list a reference that they didn't speak to previously.  They must be confident in the fact they will get a solid reference.  Ask them about it.  For all you know they have a completely legitimate reason for paying for 2 places at once.  Who are we to say how many places they can rent at once as long as their income meets your requirements?

It may be more $$$ but that isn't the only metric you should look at. Would you rather work for $1100/hr or $437/hr? STR's are a job. I don't care what anyone online says if you live there and have tenants at your home it will be a job. You can outsource and automate all you want but when you run into your guests in the driveway and they want to talk you can't just walk away....your reviews will reflect that.

I used $1100 and $437 as a real example. I have a duplex that I rent out long term and cashflow $1100 a month. I spend 1 hr (on the high side) per month managing. I have a STR that cashflows $3500/mo that I spend 8 hours per month managing. I guarantee I would spend more time if I lived there and it was an ADU.

@Griffin Malcolm

One thing to consider is the impacts it has on your cashflow. I put 31 panels in NH. My average electric bill was 420/mo. we run all heat pump appliances so our bill is higher than most. I put $0 down and got a loan at 4% and pay $320 a month. Saves me $100 a month and cost me nothing other than a few hrs getting bids.

I did this in 2021 so I know panel price has gone up as have rates so don't know if this is viable today but may be worth looking. Even a small down payment may make sense if your loan payment in less that your average bill.

 I appreciate the sentiment about starting a sound and ethical business.  That says a lot about you and don't give those principles up!  Tring to get a 100% loan is probably very unlikely without significant experience and is also probably unethical.  You are worried about loosing someone else's money in your post.  You don't know how to mitigate that and kudos to you for asking.  The fact of the matter is you mitigate that risk by doing what the folks above already told you....you bring money to the table and you have money in reserves if things go bad.  That is sound and ethical.

  I agree with the posts above, save money and make yourself someone people want to lend to.  35% equity with no money in your pocket isn't a good deal for a lender.  35% equity on top of a 25% down payment with 6 mo of reserves in your pocket is probably a much better deal for a lender.

  Don't spend time focusing on buying your first property, spend time setting yourself up financially so you can succeed in the future.  Go drive for Uber in your spare time, leverage a skill or trade you have and bust your hump working 7 days a week.  Sock that money in boring investments like index funds and focus on reducing your living expenses.  It isn't easy, fun or immediate but contrary to the youtubers and podcasters out there that is what it takes.  I firmly believe the saying "if it is easy, everyone would do it".  You truly have to sacrifice in the beginning if you don't have the cash to get started, If it was easier than that everyone would do it.  Sure you can get a deal done with 100% other peoples money but it will take time and experience to show those lenders you know what your doing which is sound and ethical.  Good luck man!
 

 This is WHAT I THINK.....I have used this site before owning any real estate, personal or investment.  I think that the willingness of those who have significant experience in the industry to provide input and feed back to those of us who don't is incredible.  I have personally never been offended by feedback I have gotten but I have, 100 times out of 100, always googled my question first.  I don't look for someone to give me simple answers to simple questions, usually it is tactical to a specific circumstance.  I think this is part of the disconnect here.  There are redundant questions asked multiple times a day "I have XXX dollars, What do I do with it?" or "which markets should I invest in".  Like use the search bar.....If you don't take the time to find the answer for your self than you deserve whatever blunt, critical feedback you get.

That being said.  I do find that some of the "Pros", not singling out Jonathan or anyone else for that matter, do come off as arrogant and condescending in some of their reply's.  It truly is off putting for someone new to the industry.  I come from working with engineers, so I am used to it but I can absolutely see how others are turned off 100%.  If someone does the work to generate a meaningful question, I wish there was more respect given to those folks.  Even if their question is bat $#it crazy give them the respect they deserve for researching a question and formulating an idea to the group.  Shutter their dreams with dignity.  We owe it to each other to hold people accountable but do it with dignity.

Some of the people I really respect on this forum don't give specific feedback to those off the wall questions.  They ask open ended questions that spur thoughts for the OP which drive them to the right answer.  That is a true mentor / coach. 

A very specific and common mistake that AirDNA makes is that many STR operators don't allow back to back bookings so for each real booking it will include a day on either end of the booking which it includes in it's revenue determination.

I believe Cliff on his experience with overly optimistic projections.  My experience is the opposite.  I run occupancy in the 80%'s with airdna projections in the 60%'s.  ADR projections in the low $100's and actual in the high $100's in our off seasons and mid/high $200's in our peak seasons.  It averages just under $200.

This highlights an even bigger problem where the skew isn't consistent.  High for Cliff and low for me.  We invest in the same state.  How do you digest that data?  

I can't re-iterate enough how much better data I have actually spending time analyzing my market and understanding my competition.  We are far and away the most successful operator in one of my markets.  We probably would have never entered it if I believed what I read from Airdna.

It comes down to what your goal is.  Do you want to spend as close to 0 hours running your business or do you want to maximize your return on investment.  I personally choose to run this business to make $.

and I'll add. My CPA has never suggested LLC's for my particular situation. It has always been dictated by my bank or in 2 cases by my lawyer when other people were involved. Again, risk management related, not tax benefit related.