All Forum Posts by: Jason S.

I agree that reviews are very important. But, just reading this review objectively, my thought is she's a lunatic and would discount everything she said if I were a potential tenant of yours. Best response to this one is no response. Arguing with an idiot makes two idiots.

I can see both sides. Breaking your lease, for instance, is not a cool thing to do. But there is a process for it, and if you are willing to take the penalties, you can do it. Same thing in this instance. The host's revenue trumped their empathy for the guest. The host cancelled within a time range that was allowed and was willing to face the consequences from the platform and the guest. I'm not familiar with VRBO, but on Airbnb, it works both ways, though--the guest could have cancelled a month later and accepted the penalties leaving the HOST high and dry with their property off the market for so long. I have never done this to a guest, but I know someone who has.

@Ali Boone I bought on Roofstock in Aug 2018 and they did not property manage themselves. They offer "vetted" PMs in the local area for you to choose from, or you can find your own. I chose one from their list, and it's been good enough so far.

I Airbnb in SA. And yes, I am cash flowing more than I would if the home were a LTR. However, it is also a lot more work :). The laws are not very bad and are clear. You should read them on your own on the city's Development Services website. The main thing you need to worry about if you are purchasing specifically for this is the density limitations--only 1 Airbnb per 8 houses on a block face. Would suck if you bought a house and found out you had a neighbor that registered before you did and claimed the block. The laws also make you register and pay hotel occupancy taxes, with some serious penalties if you try to not do either.

Also, Airbnb doesn't work everywhere here. I know some that have shut down because they didn't have a market. The area you are looking at is pretty popular for Airbnbers, but also a lot of grumpy neighbors who basically advocated for the regulation in the first place. I think you can get an idea on how saturated it is by using AirDNA.co. Also search the listings in your area and look at their calendars. You can usually see how booked they are. Also, don't forget all of the expenses that go into setting up the house and maintaining utilities for the guests. You will also need special insurance as normal HO or Landlord insurance won't cut it :)

Good Luck!

I had to reread that you said it's business, not personal, right after you said you were hurt because you had dinner with them last month. Entwining your life with them by having dinner is not business, that's personal. I think you are going to change the collecting rent based off the feedback here...but definitely stop having dinner with them or any other actions that blur the lines of business/personal. (If you are friends with them on Facebook for instance...)

It sounds like you just reached out to one PM? I hope that's not true. If so, reach out to more. Who to reach out to? Drive around the neighborhood and see if you see multiple units to rent from the same PM. That PM obviously is not scared of the neighborhood and might actually pretty good with that clientele.

Assuming both sides are empty, since you can't base your rent on an already occupied side?

First of all, your house is perfect for a rental in San Antonio right now. A couple of things you are not mentioning that will factor into your outlook. The 10% your PM is asking for IS NEGOTIABLE--some will lower it, some won't. Most PMs have all kinds of "other fees" that you did not mention. For instance, when starting a new lease they may charge you up to a full month of rent whenever you get a new tenant. Maybe the same, or maybe a bit less if the tenant is just renewing. They almost always markup maintenance costs, and generally they expect you to be hands off up to a certain dollar amount regarding maintenance. In other words, when I get turnover on a property that I have a PM for it wipes out a lot of my profit.

Whether or not the cost of your insurance will go down depends on what types of coverage you currently have. My landlord policies were much cheaper than my homeowners until I shopped around and got a much better deal on my homeowners--now they are pretty similar per month. When you gave the number for your mortgage, is your insurance escrowed within that? How about property taxes? Make sure you are calculating all of those correctly, given those factors. $1395 for rent sounds in the ballpark, but it also depends where in the city you are.

If after calculating, your cashflow is tight, then it just depends on what you want out of the home. It may not cash flow very much, but there are very few places in San Antonio where 3/2 homes aren't appreciating, which may help. I don't factor in appreciation as your mileage may vary, but many people do factor it in. Just some things to consider when planning your numbers.
 

Also, did you just say San Antonio is a buyer's market? I strongly disagree. It is a seller's market with many (most?) houses selling at or above asking price.

I'm only slightly familiar with that area, and it's definitely not "bad." It's the middle of the summer, so there is no way you shouldn't be getting applications for 30 days. There are several others nearby that have been on the market for just as long at your price or slightly higher, so it may be the price.

I think your pictures present well on your listing, and it's in a decent area of town, so that's getting people in the door. So either what they are seeing when they get there (the nuisance neighbor, the neighborhood in general, the landscaping) isn't worth it to them or your qualifications are too stringent. I think the best path is as mentioned above to just ask people why they chose not to rent, instead of guessing, then proceed from there with what you can control. Maybe you miscalculated the potential rent, or you do need to spring for a fence or better landscaping, but right now you're making zero dollars, so you have to do something.

Another SA AirBnb owner here.....agree with all those who said kick this guy out ASAP. What a dishonest person! And yes there is all kinds of liability on you as the homeowner as most landlord policies I've shopped for do not cover short term rentals. The rental market is hot hot hot, you'll get a replacement right away.

@Jake Hobson

Some of the advice given I agree with, and some I don't. But here is a list of Bexar County Tax Exemptions https://home.bexar.org/tax/PropertyTaxFAQs.html

They fall under general categories of Homestead, Disabled, and Senior Citizen. There is no property tax exemption that I am aware of for having solar panels or any other eco-friendly modification. I think there is/was a federal tax credit or deduction? Also the local power company offers a rebate (or did at one time..I'm not sure if they still do). Not to make this thread totally about protesting property taxes, but you can and should do it every year, and if you have evidence (comps, photos, etc) you will usually get the increase lowered or completely vanquished. 

Everyone has different goals. What are yours? You mentioned creating cash flow in your OP, so is that your goal? If so, then someone telling you "who cares about" cash flow is advice that ignores your individual goals. Some people are fine with breaking even, but are you?
 

What you're trying to do is convert your homestead to a rental which is mostly what I have done, so yes, it's totally possible to create cash flow in this market. I buy off the MLS with traditional financing, so maybe I'm doing it "wrong," but it's working for me, and can for you. I will agree everything under $200K which is where the best 3/2 rentals are priced are selling fast and at or above list price--that just means you have to be decisive and have your funding lined up before you even set out. I agree with @Aaron Bihlabout watching your rental price point. If your looking at houses that would have to rent for $2000, you need to look elsewhere. That price point is a hard sell in SA.

If your primary goal is "cash flow," then you can create it by putting more down and/or getting a great rate. The more you put down, the less rate of return you get, but it can create cash flow where there was none before. Some find that thought to be blasphemous, but different strokes for different folks.