All Forum Posts by: Jason S.

Thanks everyone for your replies. Since the rental market doesn't pick up until the spring, at least we have some time to weigh our options.

@Luke Carl Yes, our returns have been great as well, but not great enough to afford a housekeeper for every turnover. We've just had an extended string of "champagne taste with a beer budget" guests whose reviews have not matched what most of our guests had historically given, so those jabs hurt way more when we are putting in so much personal work into giving them a good experience. We found our sweet spot in rates to where we are booked 16-18 days per month, but the market won't let us raise the rate to afford a housekeeper.

@Chuck Kramer I am considering putting the big pieces in storage (I work for a storage company so it's free), and then sell those piecemeal on Facebook like you suggested or Next Door/Offer Up. The smaller items I'm leaning towards a garage sale. Can you clarify what you mean by using an item's deductible to get maximum value for donations?

@Pat Mulligan I will probably shop around for Estate Sale companies here. I'd be willing to sacrifice 30% to hand off all the hassle to them. If they can even sell used linens, hallelujah.

Everyone is different, but I rest easier knowing everything is in place before I move forward. I'd wait until you have the money set so that you don't have extra moving parts. Delayed gratification isn't fun, but it's smart.

We have been hosting an Airbnb for over a year and have cash flowed more than the home would as a SFR. However, the work we have to do (we do the turnover most of the time), along with the aggravations that come with dealing with the general public have made it not worth it any more for us, and we'd like to convert it to a traditional SFR. We have a property manager for another SFR in town and they said furnished rentals are too much trouble, so they won't handle it if we leave it furnished. Liquidating the furnishings and homewares of an entire house seems like a major PITA, so we'd like to make it as painless as possible while still recouping some funds. What would be the most efficient way to do this? Selling piecemeal on Craigslist? Hiring an Estate Sale company? Organizing a garage sale? Has anyone done this before?

I feel the answers to my current concern are obvious, but I thought I'd ask the community to see if anyone has an idea I hadn't thought of. Thanks in advance.

I am currently under contract with Roofstock. The reviews by @Jason G. @Ross Yeager and others helped inform me better before diving in. I am waiting to see how it all plays out before adding my experience to the archives. So far it has been mostly smooth. I purchased mine through the Open House period and was surprised when I got it. During the Open House time, the seller can refuse all offers, which happened to Dane. I personally have not seen any houses listed that much undervalue before.

Hi Julian,

Here are a couple of current Roofstock threads that may help you. 

https://www.biggerpockets.com/forums/48/topics/589...

https://www.biggerpockets.com/forums/48/topics/592...

https://www.biggerpockets.com/forums/92/topics/468...

I don't know much about Morris Invest other than the overwhelming amount of negative experiences that can be found on the BP Forums.

Also, if your purchase comes with an HOA, make sure they allow it before you go any further. :)

I have a small single-family home (1000 sq ft), and it's in one of the areas mentioned :) Since you have so many options, I can see why it might feel overwhelming, but I don't think you can go wrong with any of them. The most important thing is that the numbers work. I'd look at the pricing on one of the sites and then correlate that with your purchase price. It's not like a regular rental, so you will need to have days for cleaning/turnover unless you can afford a service to do it in a couple of hours.

The type of home you get will just determine what type of client you'll attract. 1-bedroom condo might attract more business clients traveling solo (some of which stay for weeks and have an expense account), 2-bedroom might get more families on a budget, SFH might get more families more willing to spend. Because there is so much competition your prices need to be competitive, so I wouldn't go for anything too expensive on the far north/northwest side of town (personal opinion). I knew someone who tried to do it in a solid B neighborhood just north of Sea World and was losing money like crazy, so don't go too far out of the city center if you can. I know people with SFH that are doing amazing, and I also know someone with a condo near a gun range who is overflowing with bookings because of the specialized certifications they train for. Anywhere near downtown or around Fort Sam Houston or Lackland should also do well.

I can't speak to the NE side, but I think that might be decent as well. Home prices are still reasonable, and it might attract people who think Austin is so much cooler than SA and want to visit both cities.

STR owner here. Some good points have been made already regarding the areas of town, but wanted to add some more thoughts to consider. Areas near downtown are not just good for tourism, but SA hosts multiple conventions every week. I met another STR the other day who has what would be considered a low-end home around downtown, yet he is perpetually booked just based on the demand to be close. And the conventions last 4-5 days which is great revenue. Also, as mentioned above, completely stocking a house from scratch is a lot more expensive than you may think as everything adds up and up and up; so make sure you are budgeting your investment cost with that in mind.

Lastly, there is pending legislation for STRs in SA that will be voted on in the next couple of months. I attended their last public meeting, and it doesn't look like they will be banning it altogether as many cities have done. It is still being modified but as of now, they will be limiting the density of STRs to 1 out of every 8 houses on each block face--if you don't get grandfathered in. In order to get grandfathered in, you need to be registered with the city before the ordinance goes into effect. Registering with the city also means you will need to start paying the City and County hotel taxes if you haven't already (around 11%), AND if you have already been in business they are saying that you will be charged the back taxes along with a penalty and interest. This is still fluid, but as of now, this is what the ordinance is looking like to be voted on.

I think you know what your gut is telling you. I'm not sure about the electrical, but the lawn seems very high. There are a gazillion reliable lawn care providers in Texas metro areas, so prices are generally on the low end from my experience.

Thank you for posting your experience. This is very helpful to anyone considering purchasing through Roofstock.

I've been running numbers on their site for a couple of weeks, and nothing has "felt right" to pull the trigger. So many unknown factors and their neighborhood ratings seem highly debatable. Why wouldn't they just use the A-D system like everyone else? I had also read before that most of the homes are significantly overpriced which could derail the deal on appraisal, so it's disappointing that your deal is another confirmation of that and that the seller was not interested in negotiating.