All Forum Posts by: Ian Tyndall

 I can’t wait to see what you come up with next week for Prime Day in July!

 Good point. Anything with a useful life over 1 year gets tricky

 Not a tax advisor, but another method is to classify your personal purchases as capital contributions to the business. A contract or receipt is suggested to show the transfer of property. 

I agree with Collin. Not many of us are not experts in this to give you professional advice (including myself) so consult an expert. 
Some things to thing about in this approach: you are forming a partnership through an LLC. As a result your partner's investments are capital contributions and not income. As partners you are not going to be able to maximize many of the individual tax breaks like the STR loophole. Only one filer can claim that property if you read all the requirements. 1031 exchange would require all of the partners to agree on moving the proceeds to a new property and deferring their gain. This can work well for an individual investor, but can get quite complicated for a partnership.
Just some things to think about to help you ask questions of your professional advisors if you pursue this path. 

Key question is the ROÍ on the investment. If this property were to make $225k without the additions based on its size and location, would it be worth it given the capital cost?

It is a very well designed and executed theme!

Depends on the market but if you are trying to market to vacationers or move upscale, then I think you need to offer a pool. My lead photo in every location with a pool features the pool. It conveys to the guest that you are a relaxing getaway. Even if the guests don’t use the pool they like to know it is there. 

From a hassle perspective it isn’t that bad. Monthly maintenance can vary but I pay as little as $120 per month for a single pool to $350 for a pool + hot tub with twice weekly visits (mainly for the hot tub). 

In some markets you won’t get the higher booking rates and occupancy numbers without a pool (Florida and Arizona come to mind). That being said I would look for properties that already have pools and would not advise to install one given the cost and most importantly the time it will take your property out of service. 

Mike, 

I would be happy to help you with any analysis you are doing and share my perspective and data access.  This is both an art and a science as they say.  The data help with the science part, but the art comes from your design vision and connections with people in market who can give you information about the areas where you are interested in investing.

I have used a lot of tools, and right now I am using AirDNA and BNBCalc to get different data driven views on properties.  Happy to run numbers for you with these tools and give you my $0.02!

Welcome Paul!

I would think that in a seasonal area like Ocean City you could expect occupancy rates of 40-60% on an annual basis.  You would want to employ strategies like 3 or more night minimums to encourage week long bookings and weekly discounts.

I would actively adjust prices to maximize revenue.  In the off season, I would market to work crews and others who might travel to the area for several weeks at a time.  Even in high traffic cities it can be tricky to keep occupancy over 85%, so you would have to be very competitive with your property to hit the 60% mark in my opinion where seasonality is so strong. 

Jeremy was right. The roof is a mess. At least $25k to repair it. I am not going to proceed with the purchase as the sellers wouldn’t offer any consideration for the repair. 

Thanks Jeremy, I have a roof inspection scheduled for tomorrow.

The interior is a little funky with the split level design, but I have found that it works pretty well in another one of my properties so I am not too scared off by it.  I think it will need new LVP floors and paint for sure. 

I haven't been able to get a great look at the bathrooms.  Are the showers the main concern?