All Forum Posts by: JD Martin

 If you disagree then you should just ignore the advice you get and plow ahead. I lived in the Poconos many years ago when I was a kid and the same STRs that are around now were around then, only they weren't called STRs back then. Most of the houses were vacant most of the time. My father still lives in the Poconos half the year and it's still the same way 40+ years later. 

The people who are making that money are probably lying to you. I have a very nice STR in Four Corners and the last 2 years we've been at 50% vacancy in our busy seasons because so much new product is on the market and there's still a ton of legacy owners renting out for $99/night. Also, I call BS on virtually anyone claiming $100k gross in the Poconos unless it's some oddball 7br place on a great lake. At 70% occupancy that would be $475/night.

 Years ago we never did. These days more tenants are looking for turnkey than ever and we rarely come across any tenants that have their own. By installing our own, we remove the wear and tear and damage the tenants do by moving W/Ds in and out and hooking them up wrong (which is common) and using cheap components that cause leaks and destroy floors and walls. And we add the cost of the W/D into the rent, so any units that make it a little more than 1.5 years are profit. If you stick to American name brand units that are basic - no fancy sensors, doodads or anything else - W/Ds are surprisingly durable, even with renters. We have them in every unit these days and only usually have to deal with maybe one or two every year or two, which averages out to units making it 10 or more years. 

I'm guessing you probably won't be able to get a bank loan with those items missing so you might be stuck with them installing them. I'd want proof that they were using insured, licensed installers and standard name-brand equipment.

On a side note, I saw your post and immediately thought your name was Nathan Detroit:

Assuming adding a vent isn't unduly difficult, i.e. the dryer being in an interior room far from an exterior wall and/or no good access to run dryer pipe, I would put it in on my own. It's an investment into the property, and if/when they move out or even if they're there you can now add a traditional dryer to the property and collect additional rent. Beyond that, ventless dryers can not only be dangerous they have a tendency of filling your house with microscopic lint everywhere. We took over a house once that had a ventless dryer and let me tell you it was a mess. 

It depends on what kind of income he has. If he has the income to support a $550k mortgage, and a healthy cash reserve fund, he should invest the money. If he is living paycheck to paycheck, he's probably better off paying off the mortgage (actually, he should sell the house and buy something more affordable and invest the difference). 

I always prefer a vacancy to a bum. Bums are way more expensive than empty houses or apartments. 

 I get it. I lost a boatload of money my first time around. But I lost because I sold. If I had held I would have eventually made around a quarter million instead of losing 100k+. I just consider it my expensive education. 

If you clear your head to the idea that it is possible to lose money, but that there are ways to mitigate the possible downsides, you will be much more likely to take action. 

 You're welcome. BTW, I grew up in Orange. 

 You're misreading your figures. You need to include how much it would cost you to live somewhere else in your figures. For example:

Current rental unit: you collect $2500 in rent. Let's assume both units would rent for the same price if you didn't live there. And let's assume if you didn't live there, you'd have to find a place to rent for the same money - or let's say you'll live in a cheaper place for $1500. 

Without house hacking, your figures would look like this:

$1850+1850 = $3700 - $1500 - $3200 = $-1000 net in your pocket (let's skip principal paydown and tax benefits for now).

With house hacking, your figures would look like this:

$1850+650+1500 = $4000 - $3200 = $800 net in your pocket. 

Without factoring in tax benefits and principal pay down, you're $1800 ahead of the game by house hacking. That's a serious win. House hacking doesn't necessarily mean you get to live for free, and if anyone gave you that idea they were fooling you. It depends on a lot of things, including how cheaply you *would* live without house hacking. If you'd live in a tent under the bridge if you weren't house hacking, well then it might be more expensive for you, but most people would live in similarly expensive housing, only have nothing to show for it. 

If you aren't able to save for your next property, then you really need a better job because without this house you'd have even less money. 

 Demanding more money and refusing to do it are two different things. If separate water line services for each unit weren't part of your original scope of service, then they are justified in asking for additional payment to redo the plans. Why should they redraw them for free?