All Forum Posts by: Jasper K Juhl

@Devin Bost, I understand the dilemma you're facing in choosing between full-service property management and a more hands-on approach for your short-term rental. Given that you have already set up essential automations (Hospitable, Pricelabs, Schlage, etc.) and built solid relationships with local services (cleaning company), you might not need a traditional full-service manager. Instead, a hybrid approach could be more cost-effective and aligned with your goals.

Why Full-Service Property Management Might Not Be Necessary:

Based on my experience, Evolve is a popular "half-service" property manager, which means they handle tasks like creating professional listings, managing dynamic pricing, guest communication, and advertising on platforms like Airbnb, Vrbo, and Booking.com. However, they don’t offer on-the-ground management, restocking, or property maintenance services that are crucial for remote owners. This setup may work for investors who want to remain somewhat involved, but it can fall short for out-of-state owners looking for passive income​

From your description, it seems you have a system in place for these foundational services. So, paying Evolve’s typical 10% management fee might not deliver the value you’re looking for. Other options like Vacasa or Casago might offer more complete services if you’re willing to pay a higher percentage (18%+), which includes maintenance, check-ins, and restocking​

Considerations for a Guest Services Manager:

The alternative of hiring a local guest services manager at a fixed rate could work, especially if you only need them to handle physical tasks (e.g., greeting guests or handling emergencies). With tools like Stayfi and The Host Co for direct bookings and in-house store management, you’re already taking steps to maximize revenue. A fixed-rate manager might let you retain control over the booking process while saving on commissions.

If direct bookings are a primary goal, having someone motivated to push these (beyond the traditional channels) is crucial. I would recommend negotiating performance-based bonuses rather than commissions, ensuring that their focus aligns with your revenue strategy.

Given that you are looking to expand your property with an in-house store and unique theme, a property manager focused on tailored guest experiences rather than just bookings would be more beneficial. Perhaps, hiring a local co-host (or even a boutique manager) who is passionate about your property’s brand might be the sweet spot.

PS: One interesting fact—Evolve’s 10% fee often excludes local vendor costs like cleaning, which can add up to an additional 10-15% of revenue. This is something many hosts overlook when evaluating their options​

Let me know if this helps clarify, or if you want to dive into other management solutions!

Jasper

Hey @Raheem Mcmillan, welcome to the real estate journey! It’s fantastic that you and your wife are diving into this together—especially with her passing the real estate exam. You’re already taking significant steps by building your credit and getting creative with financing options like wholesaling. I’d love to share some insights that might help guide you as you build your business and investment strategy.

Step 1: Focus on Building Relationships

Since you're new to the game, leverage your wife's new license and start networking with local investors and realtors. In the Bloomington-Indianapolis market, establishing these connections can provide you with off-market opportunities, mentoring, and invaluable advice from seasoned pros. Attend local REI (Real Estate Investor) meetups and consider joining online communities like Bigger Pockets for continuous learning.

Step 2: Be Strategic About Wholesaling

Wholesaling can be a great way to generate capital, but it’s essential to fully understand the legal and logistical intricacies. You’re building a brand around education and ownership, so transparency and compliance should be top priorities. Make sure you have your contracts reviewed by a real estate attorney to avoid any pitfalls.

Step 3: Utilize Business Credit

While building personal credit is a must, consider establishing business credit simultaneously. Open a business checking account, obtain a DUNS number, and look into setting up accounts with companies that report to business credit agencies (e.g., net 30 vendor accounts). Strong business credit can sometimes offer more flexible financing options when starting a real estate business.

Step 4: Leverage Your Knowledge

As a business management major, you have a unique perspective and skill set that can add value in a competitive market. I suggest creating content (blogs, short videos, etc.) around financial literacy, credit-building, and real estate investing aimed at first-time buyers. This can help establish your presence as a thought leader while you’re getting your feet wet in the industry.

Step 5: Don’t Rush Into Deals

It’s tempting to jump in and snag your first property, but take the time to do your due diligence and market research. The Bloomington-Indianapolis area has diverse submarkets, and identifying the right neighborhoods with growth potential is crucial. Make use of tools like PropStream or Zillow’s market analysis feature to assess property values and rental potential.

PS: Did you know that Indiana has one of the lowest property tax rates in the country, making it a relatively cash-flow-friendly market for new investors? Definitely worth leveraging as you start building your portfolio!

 Happy to help. PM me or call me anytime. 

@Chad U. you’re on the right track, but let’s break it down a bit further. The “Substantial Presence Test” is indeed aimed at determining whether a non-U.S. citizen or resident alien is considered a U.S. resident for tax purposes. You’re correct that simply owning property in the U.S. doesn’t make someone a U.S. resident for tax purposes. The key factor is physical presence, which, as you mentioned, requires being in the U.S. for at least 183 days during the calendar year.

However, it’s essential to note that the substantial presence rule can apply to foreign property owners who spend extended time in the U.S. If a foreign investor is in the U.S. frequently or for extended periods, they could meet the criteria for this test and potentially face U.S. taxation on their worldwide income. So, foreign investors should be aware of their travel patterns and consult a cross-border tax advisor to avoid any surprises.

Hey @Alecia Loveless

I've actually been down this road myself and it really depends on how often you're using the equipment and how comfortable you are with maintenance. It sounds like you've already invested a lot in rentals, about $14,000 when you factor in your upcoming projects. Buying a piece of heavy equipment like an excavator or Bobcat can definitely save you money long-term if you're going to continue to use it frequently. Based on my own experience, when I found myself spending thousands on rentals for construction projects, I eventually bought a Bobcat and it paid off within two years. The key is maintenance and storage. If you don’t have a plan for both, ownership can quickly turn into a headache.

Also, don’t forget about resale value—equipment like this holds its value quite well. Even if you only use it for a couple of years, you could sell it off and recoup a good portion of your investment.

Now, on the tax side, renting gives you an immediate write-off, which might be easier for cash flow. But buying allows for depreciation over several years. You’d want to consult with a CPA to see which option aligns better with your tax strategy, especially given your other business expenses.

PS: Fun fact—Bobcat is a brand name, but it’s often used to describe any compact excavator. That’s how much they’ve dominated the market!

I’d recommend checking the resale values on used Bobcats and comparing that to the total you'd spend on rentals. You might be surprised.

Hope this helps!

Best,
Jasper Juhl

Hey Eric, thanks for jumping in with your thoughts! You make a solid point - quality over quantity can definitely be a winning strategy, especially if those Midwest properties are in areas that don’t have strong long-term potential. I’ve seen investors spread too thin by picking up multiple inexpensive properties in less desirable neighborhoods, only to be hit with constant maintenance issues and tenant turnover.

That said, there are still opportunities in the Midwest where you can find properties in stable, growing areas. Cities like Columbus, Indianapolis, and Kansas City come to mind. These are markets with strong job growth, low property taxes, and steady rental demand. If you can identify those “up-and-coming” neighborhoods, the return on investment can be quite solid without having to sacrifice quality.

PS: Fun fact—Kansas City was recently ranked as one of the top cities for real estate investment due to its strong job market and affordable housing prices (source: Forbes 2023). Might be worth checking out!

Best, Jasper Juhl

@Stevo Sun , great to see you here on Bigger Pockets! I’m based in Austin, TX, but I’ve worked with real estate investors across North America, including a few from Canada including a few from Calgary. While Canadian-specific groups aren't as prominent on Bigger Pockets, there's a thriving community of investors here who frequently collaborate across borders, especially when it comes to cross-border investing strategies and tax considerations.

If you’re interested in connecting with more Canadian investors, I’d recommend starting by joining the BP groups focused on international investing. You’ll find investors from Toronto, Vancouver, and other major Canadian cities who share their experiences about market conditions and regulations in Canada.

For formal groups or chapters, outside of BP, the Canadian Real Estate Association (CREA) and local investment clubs are great places to connect with more like-minded investors. If you're specifically into networking with other Canadians who also consider U.S. properties, check out forums that focus on cross-border tax issues or financing strategies. It’s a niche, but a valuable one for Canadian investors looking to diversify into U.S. markets. I’ve personally seen a growing interest in U.S. vacation rentals and multifamily properties from Canadian investors who are looking for growth beyond the Canadian market.

P.S. Did you know that Canadian investors who own U.S. property for over 183 days in a year may be considered a U.S. resident for tax purposes under the “Substantial Presence Test?” Make sure to check with a cross-border tax advisor on how this could impact your overall tax strategy.

@Barry Ratliff, your question touches on two important aspects of tornado damage and HOA management. Let's break it down:

1. HOA Revenue After Property Damage: When property owners lose their homes in disasters like tornadoes, HOAs could face a drop in income due to the loss of assessment fees. Some HOAs might carry insurance for "loss of income" due to such situations, but it's not guaranteed across the board. The best approach is for the HOA to review their insurance policies to see if they have this coverage. If they don't, they could be forced to rely on reserve funds or even increase dues to cover the shortfall until the homes are repaired or rebuilt. It's worth checking directly with your HOA or its management company to see if this coverage is in place for Belton, TX​.

2. Demolition and Property Safety: If a home doesn't meet safety standards after a tornado, the process for demolition typically falls under local government jurisdiction. In most cases, the city or county will issue a notice to the homeowner, requiring them to take action. If the homeowner doesn't comply within a specified time frame, the city may step in to demolish the unsafe structure and bill the owner for the costs. The HOA might encourage swift action, but the authority usually lies with the city.

PS: Texas counties have more power over land use regulations than cities in some cases, which can influence how properties in rural areas are managed after a disaste

Hey @Yesenia Martinez

Great job on the investment in Odessa! You've clearly put a lot of thought into the property and your next move. I’m in Austin, and while I’ve got interests all over the country, the Texas market is close to my heart.

From the numbers, it seems like you're sitting on a solid cash-flowing asset. Renting it out at $2,250 and bringing in $1,600 monthly after expenses is a nice return. The fact that you bought it with cash gives you a lot of flexibility, which is key in a market like Odessa where real estate values can sometimes be unpredictable.

Let’s break it down:

1. Refinance and Reinvest:
   • The rental market is treating you well, and if you pull out equity with a loan, you'll still have that income stream. The rent should comfortably cover the mortgage payments, especially with interest rates potentially stabilizing soon. This move would allow you to keep that long-term asset while using the equity to grow your portfolio—maybe even in a neighboring market.
2. Selling (or Wholesaling):
   • If you decide to sell, keep in mind that closing costs, real estate fees, and possible taxes could eat into your potential profit. It sounds like wholesaling could be appealing due to avoiding some of those costs, but the margin is slim between your total investment and the ARV. Wholesaling might work if you find the right buyer who sees the long-term rental potential, but you're not likely to see significant gains quickly with the numbers you've shared.

Given that you're cash-flowing well and have a stable tenant through August 2025, holding the property while pulling out equity to pursue other deals sounds like a strong move. Plus, with Texas continuing to grow, Odessa could see gradual appreciation over time.

P.S. Did you know Odessa has been one of the top-performing rental markets in the U.S. for mid-sized cities due to its oil industry? Even with fluctuations, long-term investors often see strong returns. 

Good luck with your decision, and feel free to bounce more ideas off me!

Hey @Joseph Nguyen,

I’ve got some firsthand experience on this, especially in the context of residential real estate investments. What you’re describing, often called Residential Assisted Living (RAL), can definitely be a lucrative and rewarding strategy if done correctly. It's becoming more popular for investors because of the increasing demand for senior care and the fact that you can provide a more personalized and higher-quality living experience compared to larger facilities.

Here are a few key insights to keep in mind:

1. Regulations and Zoning: Each state has its own set of regulations for assisted living. It’s critical to understand what your state allows, especially around occupancy limits and caregiver-to-resident ratios. Some areas are more lenient, while others can be pretty strict, especially in residential zones.
2. Liability Insurance: This is a must, and it’s different from typical landlord insurance. You’ll want specialized coverage that accounts for the fact that residents are receiving medical or custodial care on your property. Make sure the policy covers not only accidents on the premises but also any potential caregiver liability.
3. Staffing: Staffing can be both your biggest challenge and your greatest asset. Finding caregivers who are not only qualified but also compassionate is essential. Lower turnover means happier residents, but it can also translate into less operational stress for you.
4. Max Occupancy: The size of the home and local regulations will determine how many residents you can house. Some investors opt for larger homes with more bedrooms, while others convert existing residential properties to fit more people comfortably, ensuring they meet safety and accessibility standards.

One thing to consider—smaller operations like RAL often rely on word of mouth and local reputation to fill rooms, so community engagement and relationships with local health care providers are key to success.

PS: Fun fact—by 2030, it’s projected that more than 20% of the U.S. population will be over the age of 65, which makes senior housing a high-demand sector for decades to come.  Definitely something worth exploring if you're thinking long-term!

Let me know if you want more info on specifics!

Best,
Jasper Juhl