All Forum Posts by: David Mathews

We did this with a single family that I converted to a 4plex.  It was a large compartmentalized home.  It had an upstairs game room with kitchenette and a bathroom.  I was able to turn that into a studio by enclosing the stairway from the main house and building an exterior stairway and deck.  It had an attached pool house type of area that also had a kitchenette and bathroom.  I was able to turn the halway leading from the main house into the owner's closet by framing and sheetrocking one side.  We created a full kitchen out of the kitchenette, walled off the open main space to give it an actual bedroom and living room area and we filled in the pool.(liablity)  This gave us a true 1 bedroom 1 bath apartment and left the main house a 2 bedroom 1 bath.  Lastly it had a carport area and about a car and 1/2 size garage all under the same roof. Actually under half the studio apt. I enclosed the carport area making that the bedroom and bathroom.  Required a rear flush toilet in order to tie into the sewer system in the adjacent apartment wall which saved me from having to bust into the slab.  The open garage area was transformed into the living room and kitchen open concept with a nice kitchen island. All apartments except the main house is heated and cooled with individual mini-splits with the main house left with the original central air and heat. 

Sorry... That's a lot! LOL I kind of got carried away because I'm proud of the place. It's a cash cow as a STR and MTR now!

So, what we did with the WiFi is use Deco Mesh WiFi system.  We placed the router in a locked owner's closet.  I had to run an electrical outlet to that closet for power along with an Ethernet jack. I also ran a cat5 cable from that jack to the farthest apartment to the other side of the 4plex. Again, terminating the Cat5 cable to a jack in that apartment. Luckily all of that was accessible through the attic.  In that farthest apartment we used the Cat5 cable to hardwire to one of the Mesh extenders. That covered the 4plex on both ends with the fastest signal.  The other two apartments we just used the mesh extenders wirelessly as they were basically in between the two hardwired apartment's WiFi. 

I hope this helps.  We've been running like this for a year now with zero issues and everyone seems to love the WiFi speed. (AirBnB)

I hope this helps.  Here is a link to what I am talking about just in case you're like me and know zero about this technology stuff. Because trust me.. Up until trying to figure out exactly what your're trying to figure out, I knew absolutely nothing about it. 

Amazon.com: TP-Link Deco Mesh WiFi System (Deco S4) – Up to 5,500 Sq.ft. Coverage, Replaces WiFi Router and Extender, Gigabit Ports, Works with Alexa, 3-pack

Awesome vision! 

Quote from @Yitzchok Carmen:

Hi Folks,

I have a cabin in the Smokies, and we have a "no pets" rule. The Airbnb listing says clearly that if you try to sneak in a pet you will lose your security deposit. Well we just got a guest that I can see in the camera has snuck in a small pooch. How do I handle something like that? I dont know anything about the dog and I have not reached out to them about it. My listing is pretty new and I am afraid that if I confront them or leave them a negative review they will leave me a negative review back which will hurt the listing at this point. Despite the fact that they are clearly wrong and broke my house rules and I have video footage to prove it I highly doubt that airbnb will give me much sympathy here. Is there any way to make a claim for this? Any tried and true way fwd here? 

I do not have any personal pets so in general I am not sure how much such an animal will ruin things. If they house needs a deep clean after these guests leave is there anyway to make a claim and not risk getting a negative review? Should I just suck it up?

Once on this topic, if someone with a service animal requests to book do I need to allow it? If yes can I charge a higher cleaning fee or is that discrimination?

Any help would be appreciated!

@Yitzchok Carmen:

I am experiencing this same thing at the moment. We do not own a "vacation" rental. We have a furnished 4plex that we have had set up for traveling professionals since 2018 but as things slowed down last quarter of 2022 we decided to go the AirBnB route. So for so good, HOWEVER... 

As my wife was dropping off supplies for our cleaner yesterday she noticed that the guest in the adjacent apartment was walking a very large and very hairy dog.(checked in 3 days ago) She is a medical student rotating through the local hospital system and get this... SHE'S BOOKED THOUGH MARCH! With that said I am concerned with the damage that can be done in that in the timeframe she's staying. Also what the dog is doing while she's doing her hospital work.  If it was a couple of day stay then yeah, I'd let it go like some have mentioned.  If it was a little dog then yeah, I'd let it go like some have mentioned. This is a large shepherd though.  And if I bring it to her attention or to AirBnB attention there is no doubt in my mind she'll scream ESA or some type of service dog.  Shouldn't that be disclosed ahead of time?

Yitzchok, what did you come up with?  What was the outcome?  A little info about my rental and situation: We do not require a deposit. We do have a no pet policy.  Up until now my listing did not have a written policy for unauthorized pet. We simply checked the box that said no pets allowed.  I would definitely be interested in your answers. It's a shame that it's getting to the point on BP that you can't put an honest question out there to lean on real experiences anymore without users responding in condescending lectures. If people wanted that they could just go to Facebook to get beat up by the keyboard warriors.  

Quote from @Wyatt Ramsey:

Hey all, my name is Wyatt and I’m in the Lake Charles, Louisiana market. I’m looking to make connections with anyone in or around this market who is doing anything from wholesaling/creative finance/flips/rentals or private lenders, anything in between!

I am 24 years old and I have been in industrial construction all around for the last 6 years as a welder in and out of refineries and processing/chemical plants. I have also done some residential construction from flooring to some carpentry work. 

If anyone has advice or information or just wants to talk and connect about local markets or anything I’d very much appreciate it.  Thank you all and looking forward to rapidly improving and growing in this environment! 

Oops… far thumbs hit post before writing a greetings. 
so with that said, Greetings Wyatt. I’m in the Lake Charles area. I’m willing to try to answer any questions or chat about what you have going on. I’m mostly into buy and hold properties and recently started dabbling with short term rentals. We recently bought a camp on Big Lake so I figured I’d get a little experience with short term rentals before going live with the camp. We have a furnished 4plex so we’re using that as our proof of concept. So far so good. Also like you, I’m in the refineries as well as my W2. Anyway, feel free to message.

Quote from @Wyatt Ramsey:

Hey all, my name is Wyatt and I’m in the Lake Charles, Louisiana market. I’m looking to make connections with anyone in or around this market who is doing anything from wholesaling/creative finance/flips/rentals or private lenders, anything in between!

I am 24 years old and I have been in industrial construction all around for the last 6 years as a welder in and out of refineries and processing/chemical plants. I have also done some residential construction from flooring to some carpentry work. 

If anyone has advice or information or just wants to talk and connect about local markets or anything I’d very much appreciate it.  Thank you all and looking forward to rapidly improving and growing in this environment! 

You're definitely starting out on the right foot. Meaning that you are seeking out education on the subject before just blowing your windfall. A couple of things that I'll mention is that you can never have too much education. You don't need some guru's course or $20K secret to making millions overnight. BiggerPockets is a great resource to start. I found it in 2015 when I was trying to figure out if I wanted to be a landlord or not. There are so many books out there on the subject as well. In this atmosphere it wouldn't hurt to sit on that money for a few months and immerse yourself in learning about whatever the area of real estate that you're interested in. If you're commuting to work, spend that time listening to an audio book. If you're walking or exercising do the same. Or listen to a podcast each day or every-other-day. Once you get comfortable (or even if you're not) start analyzing deals. You learn so much from that alone. You build confidence as well. When the right deal comes along you'll be ready. As for the credit aspect, there are still sellers out there who are willing to carry the note. I've purchased properties with sellers who were willing to offer a favorable amortization but with a balloon payment after so many years. That allowed me to get established. You will eventually have to start showing income in order to scale up with traditional lending but that will come together with time. Cash is king and in this atmosphere deals are going to be available soon. As each month passes the tides are slowly turning into more favorable buying conditions. Remember, you marry the property but only date the mortgage. It can be refinanced in the future if conditions are favorable to do so.

Quote from @Paul Sandhu:

Buy bank foreclosures.  Offer 25% of the appraised value from your counties registrar of deeds.  Keep enough cash on hand so that you can buy a house with a stroke of a pen in 1 hour.  Keep a 16 foot trailer full of appliances and furniture ahead of time to stock the foreclosure when you buy it.  Don't ask me how I know.

 Paul, Do you foresee an increase in foreclosures in the near future with this economic environment?

Quote from @Marija Petrovic:

And so on, so on. I could talk about this for hours.

Yes Ma'am I figured that could start a conversation for hours and hours. I supposed that's why I mentioned the "#1 thing" but I certainly welcome the #4, # 9, and #27 things as well. LOL You never know who that particular tip will resonate with on this forum so who knows... You might just help 100 other investors. I agree. Cleaning has been my main Achilles' heel. I'm still trying to figure that one out. I recently reached out to TurnoverBnB who basically required me to enter information about the units and they are supposed to get bids I suppose. Well no response from them yet. I guess they don't work in our area. I interviewed two cleaners this week. One gave me a price for a small one bedroom apartment that wouldn't work even if I was in CA with a 4 bed 3 bath house! I'd basically have to pay her all of what the rent was plus some. LOL The other seemed promising but I'm afraid I would run into exactly what you cited. I would outgrow the payment model with her. I do like the STR route but so far it has definitely been more hands on than I would like while transitioning from Long Term Rentals.

That is a significant feat! 

What is the #1 thing you would have done differently from the beginning knowing what you know now?

Quote from @Bruce Woodruff:

Quote from @David Mathews:

I'm afraid that most of the "You don't need to spend money on that crap" camp really just do not understand how the algorithms with these STR platforms work. They are not like Google. Google is a search entity that solely works for people. It aims to deliver relevant and useful data to a user when that user submits a search. Thus, websites that fulfill the wants of the user based on their hunt is ranked high, getting more traffic and conversation.

A platform like say... AirBnB is looking for more revenue for themselves so there are certain algorithms that cause your listing to rank towards the top. Not necessarily what's best for the searching guest or for you. the biz owner.  They are trying to ensure the guest finds something that'll give an experience that will keep them booking on future travel destinations. Here are just two factors that help move your listing to the top:

-Timely response to inquiries

Not only are quick responses good for guests, its an important Airbnb ranking factor. Make sure that you respond quickly to all guests messages, especially the initial inquiry/ booking message. Let your guests – and Airbnb – know that you’re an active host that responds in a timely manner. You should respond to every message within 24 hours, but realistically within 15 – 30 minutes. Yeah we're all hosts but we're people too. People who do not want to be glued to out device for our business. If you're at a family function or you're asleep or out on a fishing trip on the water or doing anything else that takes you away from your phone, these 3rd party options will allow you to have prepared messages to handle a multitude of inquiries or timed instructions to different steps in the renting process. All of that frees up your time tremendously all while letting the guest (and AirBnB) know that you received their message. It also satisfies the algorithm by instant response rates. There's no problem with actually saying in your response that "this is an automated response but I will get back to you as soon as I can about your inquiry". 

-5 Star Reviews

5 star reviews aren't just for potential guests to check out how you did previously. It might sound crazy but to AirBnB 5 stars is an A+.  4 stars is an F-! AirBnB makes money from your bookings. They make even more money when someone has a great experience with booking on their platform. If they had a great experience then they are more apt to use the platform again with future travels. If you get a bad review you could quite possibly cause the opposite. You could have cause a lifetime of lost revenue as that guest may never book on AirBnB again. So they rank listings accordingly in search results.  Communication is key to a smooth process that helps garner 5 stars. These 3rd party options can send communication for you every step of the way. Greetings upon booking. Driving instructions, Check in instructions, Check out instructions, and even that controversial "After check out message that mentions anything about a 5 star review."  Either way, if doing all of that manually via phone or computer you are no doubt copy and pasting and constantly customizing some of the messages that could easily be automated.  Talk about free up some time! I'm a dad of 7. I've been guilty of being glued to my screen trying to send last minute check in instructions as the guest is pulling up all while, "Daddy, Daddy, Daddy" is going on in the background. Ignoring what's really important is not what real estate investing is about.

Lastly,
As mentioned above AirBnB is a business and they are out to make money just like any other business. They obviously depend on your business that offers great hosts and accommodations but they aren't necessarily out to optimize your business. They're out to optimize theirs. So how do they do that?  By use of THEIR pricing tools. Sure it's easy to set in and forget it within their platform but you could be leaving THOUSAND$ on the table by allowing them to price your rental. Their goal is to put heads in beds. So many responses in this forum above have mentioned how 3 parties such as PriceLabs easily pay for themselves. Reason being is they are optimizing for you, not the platform you're listing on. They are also analyzing A LOT of data to arrive at their pricing. 

In conclusion if you just plan to nonchalantly rent out an STR here and there for a few extra bucks then you probably won't benefit from 3 party apps and such. However, if you plan to run your business as close to a passive method as possible or if you plan to continue to scale up and build something bigger than you 1st imagined as a host then it's definitely beneficial to research some of the different options to help take back some of your time and help put in place some real systems. All of that starts with 1 STR.

You are right in your assessment of the importance of AIRs priorities, Not so correct that we need an outside source to maximize these 2 items. I can just about guarantee you that those of us saying 'you don't need any subscriptions' are also those that have a 100% response rate AND all 5 star reviews. 

It's just not that difficult to do and therefore absolutely unnecessary for a newbie investor to waste even one second fretting over which apps to spend their money (which they don't have yet) on....

Not only that, but as I've said before - you need to start off doing everything yourself or you will not ever fully understand how it all works. Read that again newbies......you will always operate at a disadvantage if you do not do it all yourself at least for a year or so.

In business it has been said time and time again to, "start off with the end game in mind. If you want to be bigger think bigger." It's much easier to grow that way.  Read my above conclusion again. If you want passive then start out that way. If you want to be able to grow then start out that way. Really both ways aren't wrong and both ways can be right. But if you start out in the direction you're hoping to go then the transition is much smoother than trying to switch gears while on the fly now that you've put totally incompatible systems in place. Yes, of course it can be done directly without 3rd parties. I've personally done it like that over the past several months and just now transitioning into pricing & management tools myself as we are about to bring STR #5 online. Problem is I now look back and see all of the time that I can't get back. The back and forth with guests with messages that could have easily accomplished the same thing had they been automated. I see that I could have made more annual income this entire time using a "true" pricing tool over trusting the platform's pricing tool. That little bit of fee isn't much when compared to the increased income potential. It's not like the tools are a "program the younger generation is just trained to want to do everything" while they sit on the beach drinking mai tais. You still create. You still interact. You still price. They are simply tools that help streamline everything. But of course to each their own. Hell I'm knocking on 50 years old and I'm set in my ways as well. Hardheaded. I've read "Short-Term Rental Long-Term Wealth by Avery Carl. I've read "How to Start a Successful AirBNB Business" by Walter Grant & Richard Anderson and I've read "Optimize Your BNB (The Definitive Guide to Ranking #1 in AirBNB Search)" THREE TIMES! ALL of which suggest the 3rd party tools that I completely disregarded because why? Because I am too small. Because I am going to reinvent the wheel. Because I know better.(thick sarcasm)

Well here I am finally switching over in midstride because I failed to listen to wisdom early on.