All Forum Posts by: David Bergmann

Just got started a few months ago with 2 STR units. Lessons learned in that process...

1) Expect to get 3 star location ratings when guests specifically comments in their review that you have a "Great location, close to downtown!"
2) Linens, lots of linens and visits to Target

3) Random things disappear...ironing board, really??

4) Cleaning must be outsourced if you want to maintain your sanity

Thanks everyone for the replies.  I appreciate the insight into what's working for everyone!

I have been managing "per cleaning visit" electronic payments to cleaning company for several AirBnB properties for a few months without issues.  However, we have 2 more units coming online in January and feel like these transactions could get tedious and might be more efficient if sent in bulk.

Question for more experienced hosts who have scaled up...If you work with a cleaning company that provides these services, how frequently are you paying them?  Each cleaning visit?  Once a day, or once a week?  If you pay once a week, do you pay in advance for cleaning services expected to occur based on your calendar at that time OR in the rears for those actually completed in the past week?

Looking forward to the topic.  Thanks Andrew and Will!

Hi Lucas, I plan to attend this meeting.  Thanks for organizing!

Thanks Mark, that makes sense.  The relative is receiving 10% in addition to the 75K invested.  So it sounds like that is what he'll need to report.  Thanks all for answers, this was really helpful.

Thanks Anna!

I really appreciate your responding to my question!  I definitely agree that a discussion with the family member and accountant may be the best place to start (and probably my very next phone call)!

If there are tax implications, I was considering whether there is a viable strategy to minimize taxes through gift tax exemptions.  For example, myself and my wife could each gift 14,000 to family member and family member's spouse immediately (total $54,000 in 2018), and then remaining balance plus interest due to the family member on 1/2/2019. 

Family member assured me things were good on their end, but I am a little more risk adverse, and want to be sure things work out well for them in the long run because they've helped us in this venture and deserve to be rewarded for that.

I grew up here also, and agree Rosewood is a great part of town that still has some good opportunities (unlike Shandon).  I am also interested in North Main neighborhoods (Earlewood, Elmwood Park & Cottontown) and certain areas in West Columbia right across the river ("The Avenues").  I think these older neighborhoods have a lot of charm and location convenience that young professionals and some "empty nesters" are looking for (Rosewood has the additional advantage of having a decent elementary school!).

David

Hi everyone,

First post, and maybe a relatively newbie question.  Please go easy on me if that's the case!

A family member and I bought a property together for 50K (25K each).  We performed a renovation that cost in total 100K (50K each).  All in, we both have 75K a piece in the property.

This family member decided they would prefer to cash out, and let me take over rental property operations.  This was considered a win-win situation for both us and our goals (they are retiring and I am just getting started).

I secured a cash out refinance in my name in order to pay this family member (and myself) back.  House appraised for 215,000, so I had no issues with getting 150K cash out.  In this process, we removed family member from the deed (quit claim) so that I now have ownership and mortgage fully in my name.

I want to pay this family member as soon as possible but concerned how this transfer of funds will be taxed.  My question for the experts out there is how do I make this transaction happen and minimize taxes for the family member?  

Thanks so much for reading and responses!

David 

I have a duplex near a hospital.  We advertise the units exclusively to traveling nurses on 2-3 month stays and have had really good success.  If you don't mind furnishing nicely and paying utilities, you can nearly double your rent.  Downside is more work, but the extra cash is nice!