All Forum Posts by: Jhosdyn Barragan

@Andrew Steffens @Collin Hays@Sarah Kensinger If you guys have a back to back turn over and change your entire water, how do you ensure it is heated all the way back up to temperature before the next guest arrives? Just had to top off our hot tub, not even change fully between guests, and it did not heat up in time for the next group to be able to use on their quick stay. Do you use any specific brand of portable heater? Does your hot tub heat to 100+ in less than five hours? Or do you not have back to back bookings on these properties?

@V.G Jason Thanks for the input, certainly no one ever wants lawyers involved!

@Sarah Kensinger Thank you for the adivice Sarah! Avoiding a guest getting sick is certainly a priority. 

@Kingsley Thomas Thank you for the advice as to how you run things Kingsley! Good to see another strategy for doings things especially one that leads to savings.

@Andrew Steffens Thank you for the input Andrew! Good to know this is the consensus approach. 

@Collin Hays Thank you for the help!! It definitely makes sense to air on the side of caution and cleanliness. Do you do any other sort of testing? Are the bromine tablets easy to get on amazon? Do you just fill the tub with water from a hose? Approximately how long does this process take, I imagine my cleaners would have to do this as one of the first duties upon entering the home along with laundry. Sorry for all the questions, I've never had a hot tub!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $420,000
Cash invested: $30,000

Purchased an existing short term rental that had been almost entirely renovated, but still had some areas we could improve. Completely remodeled the primary bathroom as well as upgrading all furniture and improving hot tub and fireplace amenities. Spent around 30K in materials and labor. With current interest rates, we will break even on the investment until able to refinance for improved cashflow; however, the area (Massanutten Resort) is great for appreciation and the tax savings are excellent on my W2 as we are self managing. The experience has been an entry in a new form of REI for myself that I look to continue to expand in (luxury STR).

What made you interested in investing in this type of deal?

Dipping my toes into the world of STR in hopes of greater free cash flow

How did you find this deal and how did you negotiate it?

Found on MLS, made a strong offer at asking price with no contingencies as the home fit all our criteria. Had it under contract 2 days after it went live on the MLS

How did you finance this deal?

Second home loan

How did you add value to the deal?

Improved the only last areas of the home that where not newly renovated for a complete "luxury" feel to the STR. Improved all the furnishings and decor.

What was the outcome?

It has gotten steady bookings. Breaking even in its first month. Will look to increase occupancy as good reviews come in and eventually by refinancing the home at a lower rate.

Lessons learned? Challenges?

Managing the renovation from two hours away and building a team from scratch was a lot of work.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Monica Snow was our agent and helped us during the deal.

I recently purchased a cabin in the Shenandoah Valley that came with an existing hot tub. I plan on having it inspected and serviced before our first guest arrives, however, I am soliciting advice from other STR owners with hot tubs. I have never had on in my personal home and I'm not sure the best way to maintain them. Do you have your cleaners perform specific tasks after each check out? What do you use to test the hot tub for safety and to adjust any chemical levels? Do you contract this out to a third party and if so how frequently? Any advice would be greatly appreciated, thanks in advanced.

@Derick Bonsu, we are renting it by the room, we just happen to have two bedrooms in the basement with a walkout entrance so it works awesome for everybody's personal space. This is also why they don't have a full kitchen, just a kitchenette to make sure we comply with local laws. One thing we learned though, if you buy a over the counter cooktop, you need induction compatible cookware! We ended up buying the tenants a four piece set since we didn't warn them before moving in (didn't know). 

@Heather Skowronsky Our purpose for this second househack was to gain more space for us and our dogs. Gaining a second floor really accomplished this so we will not be renting out any rooms although the income would be nice. We're going to stick with the basement model for now. Although our original househack is cashflowing 1.7K monthly with this model, I bought that one with an interest rate of 2.75 in 2021, and my current home has a rate of 5.0 (plus a higher purchase price) so the rental income for the basement won't even cover half the mortgage! It is still nice to have a large discount on the mortgage though and we are looking to refinance once we see rates drop below 4.0 as we have done a complete gut remodel and forced a lot of appreciation.