All Forum Posts by: Jenessa NeSmith

We are doing a flip in the Midwest.  The interior is going fine and we have added new siding to the exterior.  However I am stuck with how to address landscaping.  We would usually do some flower boxes and do some mulch and perennials around the front of the house.  Can you plant anything when the ground is going to freeze soon? Would it look dumb come spring if we just mulch and add stones without planting anything? We are doing most of the work ourselves and our budget for landscaping is about $500.  

Just wondering if anyone has run into this issue before and if they have any suggestions :) thank you!

We are doing a flip in the Midwest. The interior is going fine and we added new siding to the exterior. However, i am stuck with how to address landscaping. We would usually do some flower boxes and do some mulch and perennials around the front of the house. Can you plant anything when the ground is going to freeze soon? Would it look dumb come spring if we just mulch and add stones without planting anything? We are doing most of the work ourselves and our budget for landscaping is about a grand. Just wondering if anyone has run into this issue before and if they have any suggestions. :) thank you!

We are doing a flip in the Midwest. The interior is going fine and we added new siding to the exterior. However, i am stuck with how to address landscaping. We would usually do some flower boxes and do some mulch and perennials around the front of the house. Can you plant anything when the ground is going to freeze soon? Would it look dumb come spring if we just mulch and add stones without planting anything? We are doing most of the work ourselves and our budget for landscaping is about a grand. Just wondering if anyone has run into this issue before and if they have any suggestions. :) thank you!

So we are flipping a house in the Midwest in the middle of winter...something I never thought about was landscaping! The house doesn't have any curb appeal, but how do we address that when the ground is frozen? Should we just mulch and do stones? Or can we plant anything? Wondering if anyone has run into this before and if they have anything that worked for them. :) thank you!

My lender has said that Airbnb will count towards my income as long as I have a two year track record.  I know you said that you don't have very much equity, but do you have at least two years of Airbnb experience on your tax returns? This might be able to help you with conventional financing.  I also co-host several other Airbnbs to increase my income stream from this, which looks better in the bank's eyes. 

There are some other options you could do:

1. get a cosigner - family member, friend, colleague, etc. They don't put any money down, and you pay them for the use of their credit score.  You can refinance after a few years and take their name off of the mortgage. 

2. Banks and lenders are unfortunately more friendly towards traditional long term rentals.  I've had a bank tell me that my Airbnb income doesn't count, but if I had a signed lease agreement it would.  It might be worth considering long term rentals until you get portfolio up and running or build up more equity.

3. set up a line of credit with a bank. With your good credit and debt to income ratio, you could potentially qualify for enough to get a smaller house, and since this is considered "cash" you could get a better deal and wouldn't have to wait to refinance.

I personally haven't had very good luck with hard money or private money loans for use with Airbnb.  The seem to cater more to flippers, and the ones I have talked to want their money back too quickly (6 months-year) which doesn't give me enough time to qualify for a conventional refinance.  Not saying it can't be done or not to try it, but that has just been my experience.  

It depends on how much money you have up front to work with! With my first Airbnb, we focused on price point for the furniture and got neutral (boring!) pieces as cheaply as possible.  As our Airbnb got successful, we picked a theme/color scheme and began using the money we generated to update our furniture and appliances slowly.  As our furniture and appliances got nicer, we could (obviously) charge more.  

Craigslist free is the best!! We've gotten all of our mattresses/box springs for free (I know some people think that's gross, but really every mattress you sleep on in an Airbnb/hotel is used - just test it out to make sure it's comfy and check for bed bugs) couches, night stands, kitchen table/chairs...if you have a truck, a lot of people will let you take stuff for free because they  don't want to deal with hauling it away.  It may be a bit hodge podge but if you stick to neutral colors it will end up looking alright! 

Have you thought about adding a roommate to your house hacking? So the other side of the duplex brings in 1,000 and then a roommate would pay $4-500 depending on where you're at.  

Also, have you thought about doing short term rentals (Airbnb, VRBO, etc) on the other side of the duplex instead of a long term tenant? Would be more work but also have better returns.  

If it were in my area, I vote for the duplex.  This is based on the vacancy rate logic similar to a LTR, if one is vacant it's not your entire place.  You can put things in the two bedrooms to increase the number of people who can stay there (sofa bed, trundle beds, air mattresses, etc).  In my experience, there are more smaller groups of people looking to stay at an Airbnb vs a large group.  In addition, there is also a feature on Airbnb where you can list the duplex as a total unit, giving you four bedrooms and two bathrooms, so if there is a large group/event you can also accommodate.  Good luck! Let us know what you decide!

I don't understand why you need to put people out of business...we have competition in my area, but instead of focusing on putting people out of business, I simply make sure that my STRs offer a quality guest experience and use the competition to make myself better.  There are plenty of STRs to go around (a rising tide lifts all boats).  The people that aren't cut out for the business will fold on their own, without your help. 

Hopefully you have done your due diligence and can handle the worst case scenario. It is very easy to buy furniture, and if you have time you can even do so pretty cheaply (estate sales, Craigslist, clearance items at big box stores). Start by pricing your STR lower than the competition to build up a good reputation and be open and communicative with your guests. Ask them privately for honest feedback, go out of your way to ensure they have a good experience in their town. Check the forums for tips on how to start, and there are also some good podcasts out there that target specifically STRs. If you have any specific questions, feel free to send me a private message!

Obviously this might be different depending on the state, however is it necessary to obtain a plumbing permit/inspection to replace a shower valve?  How about to replace a toilet? I don't want to pull any unnecessary permits. I have tried calling the permit and inspection office but can't get an answer or anyone to call me back, so wanted to see if anyone on here had any advice.

We are in Omaha, Nebraska if that helps.  Thank you!