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All Forum Posts by: Gerald Pitts

Gerald Pitts has started 11 posts and replied 460 times.

Welcome, Kyle! Would you mind sharing some general numbers about building new construction? 

Post: Funding Air Bnb (STR) Deals

Gerald PittsPosted
  • Lender
  • Asheville NC
  • Posts 466
  • Votes 317

Cash out refis of existing properties is another way.  Through forced or natural appreciation. 

Post: How much work are STRs really?

Gerald PittsPosted
  • Lender
  • Asheville NC
  • Posts 466
  • Votes 317
Great work, Mike.  This should be its own article on setting up a new STR.  

Originally posted by @Mike Anderson:

I work in IT, and have done work for some of the biggest names in tech. My most recent job i manage a team of engineers of 25 engineers that run and manage a hospital's IT department. One of the core principals I've instilled in my team is lets work toward a world where we know about issues before they happen and fix them before people notice, we have tools that will alert us that a particular piece of equipment has broken a trend line and will break down in 6 hours, so we can make adjustments before the problem creates an outage. When we do have an issue we have a meeting after the fact and our goal is to figure out what we have to do to "never talk about this again" how we fix this issue so its fixed for good and we never need to deal with it again.

I've tried to figure out how to aligh that methodology into the STR world. Obviously you can't anticipate everything but we have tried to do the best we can and we will make adjustments accordingly in the future as we learn more. I think a "fully automated" system in this world is not reasonable but we should work towards it, but i think you can get it close enough and invest your time wisely into things that will make a difference.

We did a few things in our rental to "get ahead" of problems.

- Replaced every bulb with LED bulbs, this helps us save money on electricity and the lifespan on LED is much longer than an incandescent bulb.
- We proactively replaced both toilet seats with the best seats you can buy at home depot, the cost difference is like 30 bucks but if that prevents a call or two fine by me, one was already broken invest a little extra to prevent calls.
- We bought extra's of items we know go missing, like steak knives, towels, and other kitchen items our cleaner knows where they are stored
- We bought smoke detectors that don't need batteries, again one less thing.
- We had leaks on 2 of our 3 faucets, we had a plumber try to tell us they had an O ring and could fix one of them. Instead i bought new faucets as the existing were old and leaking. I bought a good brand, but a middle of the road product in that brand. Thought too myself if 2 are bad, might as well do the third as i was doing it myself and they are the same age. So now my place has all new faucets. I could of saved money, but honestly how long before another O ring goes bad when a guest is there.... Statistically much lower a chance a new faucet goes bad
- We noticed a door sticking when we were there and we fixed it, a guest will eventually complain so we handled it.
- We had a toilet that was cracked, i didn't buy a 600$ toilet, but i bought a better one, that also had a ton of parts availability. Again i don't want to deal with it, and if i do i want to be able to get parts easily.
- We had fans that were all over the place one with a battery remote, 2 without, 1 with a switch that turned the entire thing on and you had to use the pull cords to turn the light on. I rewired/fixed them all so one switch turns on the light, the other turns the fan on all fans in the house. Consistency, they all work the same now and it make sense. Guests don't need to figure it out it should be easy and intuitive for them.
- When I did the faucets i cleaned out all P traps really well. No known issues but i know they are clean now. For the shower traps i proactively put liquid plumber in them, one of them got considerably better. Took me 10 minutes, but now I know that both are good, I didn't know of any issues but the time/effort/cost was cheap enough, and its a common enough problem might as well get ahead of it.
- I saw folks talk about source on the TV, we use comcast, netflix, hulu, amazon prime all of them are accessible using the xfinity button so I hide the TV remote. Tv is programmed to force to the source of comcast, and to use any of the apps just hit one button. Easy peasy for guests, and i have a template made to respond to folks if they have issues. No source changes are ever needed to access anything.
- I utilize all the wifi stuff i can. Noise monitoring, wifi thermostat, wifi lock, wifi security camera and flood light. I have an app that allows me to reboot my router/cable modem too. I can make adjustments to anything in just seconds if guests have an issue.
- I also use a free hostfully guidebook, which has info on how to utilize all my household items with pictures, has restaurant recommendations, hiking trails, the whole 9 yards. I spend a few hours on the front end to set it up, but don't plan on doing a whole lot in the future. I send this link in my automated Welcome message, if they ask for recommendations in the future i have a template that resends the link and lets them know our recommendations are all there.

My goal from doing the above is i bust my butt for a week, spend some money on the front end in hopes that i have set myself up for 2-4 years of the least amount of issues i can have. Then on a day to day basis I let yourporter automation run, pricelabs run, and i do a response here and there to make guests happy. It's all about the systems and planning for stuff before hand. I'll make adjustments as I go but I think setting myself up like this will set me up for future success, and allow me to focus more on future deals and not day to day operations. Lastly it cant be said enough that a good cleaner and handyman is worth their weight in gold. DO NOT UNDERESTIMATE THIS. You might as well look at your cleaner as someone that is a business partner and is a part owner of your business because basically they are. Treat them well, and recognize the huge contribution they make in your success.

Post: 5 bedroom cabin vs 4 bedroom pool cabin--Gatlinburg

Gerald PittsPosted
  • Lender
  • Asheville NC
  • Posts 466
  • Votes 317
Originally posted by @David Almasy:

Thanks for all the input. Here is some added info-- the 5 bedroom is NOT furnished, but costs about $60,000 more than the 4 bedroom pool cabin, but it IS furnished. Both homes are new builds by the way. Again, I appreciate all insight!

To me, that just strengthens the 4BR with pool argument. If it were the other way around you'd maybe have some COC considerations to do, but if it's 4BR, has a pool, views, and comes furnished, it's looking better and better.

Post: STR Newbie Introduction

Gerald PittsPosted
  • Lender
  • Asheville NC
  • Posts 466
  • Votes 317

Welcome! Make sure and check zoning. To do NOO STR rentals in Nashville, it has to be a commercially zoned area, I believe.

Post: How much work are STRs really?

Gerald PittsPosted
  • Lender
  • Asheville NC
  • Posts 466
  • Votes 317

I automate as much as possible on 2 properties, and I probably deal with them once or twice a day on a busy day.  30 mins max.  Even THAT is probably my own control issues that I'm working on.  There are sometimes a few days that go by with nothing.  I'm focused on scaling bigger, and learning what I can about that.  

Post: 5 bedroom cabin vs 4 bedroom pool cabin--Gatlinburg

Gerald PittsPosted
  • Lender
  • Asheville NC
  • Posts 466
  • Votes 317

Agree on the pool.  95% if not more of my cabin inquiries during pool season are pool related.  :)  In fact, one of my cabins' HOAs is $50, and I was trying to cheap out and not pay it because all I seemed to get for it was a pool.  Then all of those pool questions rolled in, and I started paying haha.  

Post: 2 Bedroom or 3 Besroom Cabin

Gerald PittsPosted
  • Lender
  • Asheville NC
  • Posts 466
  • Votes 317

Agree with @Justin Anderson.  Should be able to gross the 20k more with the extra br.  Especially if it isn't that much more expensive.  I am shooting for at least 3 if not 4brs next. 

Post: Short term rental

Gerald PittsPosted
  • Lender
  • Asheville NC
  • Posts 466
  • Votes 317

I self manage.  With today's tech, it's very little work.  The cashflow is huge compared to most options I've seen for professional property management.  If it kept me from scaling, I wouldn't self manage.  But it's maybe an hour a day avg.  Probably less.  

Awesome job.  You're a natural at this!