All Forum Posts by: Jon Martin
Jon Martin has started 36 posts and replied 1075 times.
Post: Law of Diminishing Returns on STR's?
- Posts 1,086
- Votes 956
Assuming the quality location is the same for all options and purchase prices listed above, I would go for the single property so long as there were comps hitting the 20% rule (rev/pp). If there were better ratios with 2 smaller properties that were half the price, then great go with that, but that's usually not the case. Revenue tends to keep scaling up with bigger and nicer, people book further in advance, and it's easier to justify 3+ night minimums.
Post: typical furnishing costs
- Posts 1,086
- Votes 956
Quote from @Chris Watson:
Just purchased furniture, linens, outdoor polywood furniture and curtains this weekend for a 3/3 condo. Here is how we roll...my wife as the designer puts a spreadsheet together with links for each item with costs and quantity. I then spend about 4 to 6 hrs reverse image searching each item to find the cheapest place to by the items. It was great this weekend the first item I searched for was a $900 headboard she had on Wayfair that I found for $220 at Home Depot minus 10% military discount and 10% cashback through topcashback making our true cost ~$180. Her cost prior to me working on it to furnish a 3/3 including $2,800 of polywood outdoor furniture was $28k. I got it down to $22k and addition $750 cashback using cashback sites. Sometimes Minoan can beat other sites, but sometimes not. It is worth getting a quote from them. Another tip is 95% of Wayfair items are sold elsewhere cheaper, but wayfair uses a different name so you have to image search the item. Appliances were another $2.6k and I prefer to use Costco because they bring all the hoses and cords for free, install for free and haul away for free.
Yup, reverse image search on Wayfair every time. Sometimes it's a 3-4X+ markup! Why people still buy tons of stuff from there is beyond me.
Post: typical furnishing costs
- Posts 1,086
- Votes 956
I'd say $10K for the main living areas and 1st bedroom. Add $5K for each additional bedroom, which covers the scaling up needed for other furnishings to acomodate the extra heads. This is for moderate quality items, not fancy but durable and decent looking. So ~$20K for for a 3 bedroom place.
Post: STR Insurance Vs Landlords Insurance???
- Posts 1,086
- Votes 956
You need a STR specific policy. LTR policies are not designed for commercial use and your claim will be denied once the insurer finds out you were on airbnb/vrbo. Shoot for $1M in liability coverage (at least).
Post: What's the consensus on electric fireplaces in a mountain cabin?
- Posts 1,086
- Votes 956
Quote from @Collin Hays:
The thing about the electric fireplace is, yeah, they look pretty cool, but there's a fair amount of technology and moving parts in these things - think video game with a heater - that can go kaput on you. Then what? Certainly no one is going to repair it for you. Pull it out and put another in?
And what about the remote for the thing? Remote gets lost, no fire.
There's some benefits, but I'm leaning toward gas logs and the timer switch.
The one I posted I've had for 3 years, no issues. Also has buttons directly on the device that are blended into the design.
That said, yeah, like anything electronic you won't be fixing it now that the Maytag Man has been put out to pasture
Post: What's the consensus on electric fireplaces in a mountain cabin?
- Posts 1,086
- Votes 956
I've bought this one and it actually looks pretty good with the trim kit
Post: Airbnb’s new 1 5.5% host-only fee — let’s get the math straight.
- Posts 1,086
- Votes 956
IIRC before the policy change, the price I put into the calendar for each day is what I get paid out because taxes and platform fees are added on top of that. Is this no longer the case?
Post: STR's in rural midwest Michigan
- Posts 1,086
- Votes 956
Seasonality will be your biggest challenge. You need to make enough money to pay the bills through the winter. Price can also get high the closer you get to the lakefront or any of the well known inland lakes.
I've heard a few podcast episodes with hosts from Michigan and the township patchwork creates another layer of bureaucratic headaches. Not uncommon for a township board to outlaw STRs, or cap them at a limit that conveniently grandfathers the STR properties already owned by the board members while leaving no room for anyone else. This podcast episode has a lawyer from Michigan that covers all of that, I'd recommend reaching out to her for a consultation if you are serious about it:
https://podcasts.apple.com/us/podcast/160-asking-an-str-lawy...
Post: Am I crazy to purchase a resort on a lake in Minnesota?
- Posts 1,086
- Votes 956
Quote from @Jay Hinrichs:
You'd think that a high-end fishing lodge would be more hands on? You need a lot of personnel to provide that level of service, and if you aren't there then you are probably giving an on-site manager a piece of the action to keep it running at its best.
Whereas a lot of these cabins are basically the pre-OTA version of STR where guests don't expect much from management and mostly keep to themselves. Seems like that could run with a lean staffing model outside from a handyman and some cleaners.
Post: Am I crazy to purchase a resort on a lake in Minnesota?
- Posts 1,086
- Votes 956
Sounds like there is a lot of room for upside, especially if they are not yet on the OTAs. Combined with some light rehab and self check in you could do a minimal staffing model.
Is there already some personnel in place? Also, definitely look at the financials!