All Forum Posts by: January Johnson

Does anyone has experience working with "The Lender" to finance a short term rental property? When we spoke to them last week, they mentioned that they can easily do 20% down with no experience needed as being a host. I know there are plenty of lenders that will do 25% down but 20% was what caught my attention.
The only reason I am hesitating is that the loan officer wanted to run a hard credit pull even to send me a term sheet which was really strange. When I told him, that I am not going to do that at this point as we are merely talking and the lender I spoke to 30 minutes earlier had run a soft pull and send me a term sheet, he then did he agree to give me a "Ballpark" terms verbally. He did promise he will send me an email, which he never did.
I am not going to go with a traditional bank at this time with all the hassles that come with them so hoping to find some insight on "TheLender" or any other lending group that allows 20% down as a DCSR loan on a STR, SFR in MN which happens to be a no pre payment penalty not allowed state. The rate quoted was 8.875% so I really want to stay close to that as well.

STAY AWAY FROM THE LENDER AT ALL COSTS! I am NOT KIDDING. I have never had a good experience with them as an agent, and just recently had them bait and switch a buyer (I had the seller) AT THE CLOSING TABLE. She thought her rate was 6.75 but it was 8.75 when she sat down to sign. I helped her find another lender at the last minute (literally), and they closed her in 14 days.

PM me if you'd like that lender's contact info.

STAY AWAY FROM "THE LENDER" though. My whole team has horror stories to tell (and we are 50+ agents in 20 STR-friendly markets) - The Short Term Shop.

1 Vote

Minneapolis, Minnesota

March is going to be one of your biggest months. Don't count it out!

0 Votes

Hi there - I work for The Short Term Shop, so I can answer a lot of questions for you.

Our high season begins in March. March and April bring families and college students for spring break. Our slower months are definitely Nov - Feb.

How big is the house you are building and where is it located? North of 98 won't do well for STRs. Properties with more than 4 bedrooms won't rent as well in the off season. Do you have a pool?

There are MANY factors to consider here. I'd be happy to speak with you further if you'd like to PM me.

0 Votes

STR is a strategy and an investment (furnishings, learning to self-manage, hiring cleaners, etc.)--not a backup plan. Also, if you're near a golf course and don't rent it out on weekends, you might not have enough renters to make it worth your spend.

Realtors don't just show houses on weekends, either, so I don't think this is a sound strategy. Either go all in on the flip and sell or all in on the STR, but don't try to mix them. You will only frustrate yourself. Plus, you'll have to do something with all the furnishings after the sale as well.

3 Votes

Western NC, North Carolina

99% of what I sell are turnkey STRs. It's helpful to post rental history if it's good. In my market, buyers are looking for about 12% or more in gross rental income relative to purchase price, so if you have a $500K property that's only doing $40K/yr under the current management, don't post rental history (though most buyers will ask for it, so be prepared to explain why it's performing the way it is).

Also, network with agents who specialize in STRs. My team is in 20 STR-friendly markets, and we have access to tens of thousands of STR buyers and owners.

1 Vote

Coffee pods, powdered creamers, a variety of sugars/substitutes

Plus all the expected tp, paper towels, dishwasher and laundry pods, basic spices, etc.

0 Votes

Orlando, Florida

Be sure and read @Avery Carl's book, Short Term Rental, Long Term Wealth, published by BP. Start there and join the Facebook group by the same name. Lots of free resources for learning about STRs! I'm also happy to answer any questions you might have. I own 4 on the Emerald Coast of Florida. Good luck to you!

1 Vote

Atlanta, Georgia

Quote from @Matyndia Oyourou:

Quote from @January Johnson:

Quote from @Matyndia Oyourou:

Hello, I am starting on my real estate investing journey. My goal is to buy a multi-family unit and house hack in Houston, Texas. I am trying to decide between renting out the remaining units short-term vs long-term and would like to know the costs involved with each. What are the fixed and variable costs associated with having a short-term rental vs long-term rental? What are some unexpected costs? Thank you in advance for your valuable feedback!

You also have the "cost" of your time, which will vary a lot, especially as you ramp up while learning the STR ropes. After 10 years of hosting, I don't spend much time each month on my 4 STRs, but newbies who like to watch their cameras, obsess about a lot of (often unnecessary) details, and pile on a bunch of tech (channel managers, dynamic pricing tools, etc.) all at once will spend MUCH more in time, and that's worth something for sure.

You made a great point about treating time as an important part of my analysis. What do you consider are some things worth spending time on while managing STRs and what do you consider unnecessary details? Thank you for sharing!

IMPORTANT:
--Guest communications, including setting up your automated messages

--Price adjustments (key into seasonal pricing and important events in your area)

--Listing description and noting amenities

--Guest reviews

--Learning from experienced hosts with great reviews (you can do this on many social media sites, including the Facebook group, Short Term Rental, Long Term Wealth)

UNIMPORTANT:
--Watching your Ring Doorbell camera

--Obsessing about minute details that other hosts are freaking out about

--Being a control freak about ANYTHING related to this business. You just cannot control it all.

1 Vote

Houston, Texas

Quote from @Jazmin Brown:

Hi everyone! I’m Jazmin and I live in central Florida on the east coast. I own an investment property that I use as a short term rental, it’s been successful! I’m interested in expanding my own portfolio but I am really eager to help other investors manage their property and co-host with them! I can offer partial or full operation, setup, schedule organization, property maintenance, on-call/out of town coverage. I’m flexible and willing to work together make sure needs are being met

You can sign up with Airbnb to be in their Cohost program. I don't know how it works, but you can ask in your local host group.

Not in a local host group?

Join one here:

https://community.withairbnb.com/t5/Local-Host-Clubs/ct-p/en...

0 Votes

Orlando, Florida

All Forum Posts by: January Johnson

January Johnson has started 18 posts and replied 774 times.

Post: Most reliable electronic locks for STR

Post: Short term rental Financing

Post: Rent Projections in 30a. Are these projections realistic?

Post: Rent Projections in 30a. Are these projections realistic?

Post: Should I air BNB until a house sells

Post: Best way to sell a Turnkey Short Term Rental?

Post: What consumable do you provide your guests, in you short term rentals?

Post: Long-Term Rental Investor expanding portfolio to short-term rentals

Post: Costs related to short-term rentals vs long-term rentals

Post: Hi, I’m here!