All Forum Posts by: Jon Martin

 No . .. Good thing the OP is in Oregon! ;)

 Nice- sounds like it! What was your average before?

A few things that come to mind for me:

-I wouldn't put the cleaning fee as a monthly line item at $400. That should be a pass through cost where the guest pays roughly what the cleaner asks. That said you should account $100/month for random fixes, plus another $100-200 for CAPEX.

-I'd expect utilities to be more unless it's somewhere with perfect weather year round and cheap rates. Sounds cheap for power/gas, water and trash 

-Agreed that your insurance will be much more than what you are accustomed to. Also not clear if property tax is included in your mortgage?

-Depending on the property you might need lawn care, exterminator and other misc stuff that is easy to forget about 

-Consumables: TP, PT, bar soap, shampoo/conditioner, laundry pods, garbage bags, coffee, coffee mixers etc add up. I estimate $80/month for a 2/1 with Costco grade stuff. I keep the bulk of it locked up but leave a bit extra that is accessible so that guests don't run out. I could be a bit scroogier without pissing guests off, but don't be that host that only leaves 1 roll of TP and 1 spare garbage bag. 

-$10K renovation still seems light even if it's DIY, at least to the extent where it will make a significant difference in the appeal of your listing photos and command a higher ADR. IMO, although I could be wrong depending on the property and market 

Overall I think the numbers look decent-to-good, especially at that entry price. If the location is good and you feel good about the property and market then  it sounds like a good entry level property. If it's doing well in a saturated market then it could probably do better with a facelift and good management, all of which are under your control. 

I did with my first property. I wasn't sure what I was doing and needed some pointers. Think I spent around $1K. It was worth it because the place looks great. 

Now that I've done that, I initially didn't see the need for my next property because I understood the basic concepts. However the property I ended up with has an odd black/brown countertop pattern with an 80s style oak cabinet stain, along with brown floors and a beige backsplash, so it's brown on brown on brown. It's tough to figure out what I can do with the backsplash or peninsula to make it pop in the photos and look appealing without painting the cabinets. Therefore I'm calling on the same designer to see if she has any ideas on how to make it work, or if she also agrees that painting the cabinets is the only route. 

Therefore I don't think you need a designer to do everything for you, but you may want someone to give you input, especially if you are trying to make some elements work without having to replace them. 

So does this cover the base of a Router and/or Modem, or does this connect to your Router/Modem? 

Not while in Europe, but I manage remotely from several time zones away. It makes zero difference so long as you have systems in place and boots on the ground that you can call on in a pinch

Only issue is that your guests may hit you up with issues while you are sleeping because of the time change. 

@Owen Rosen if you have a contact who does that sort of thing please PM me. Thank you

I strongly disagree with this. It's not rocket surgery to pay attention to demographic trends, economic signals, and basic human behavior to figure out what areas are a safer bet for investing. 

Areas close to coastlines, universities, rivers, major highways, large employers, hospitals, airports etc are likely to keep growing. Especially if there is already a decent sized population center. Areas in the middle of nowhere that lack opportunities tend to stay that way. 

With a bit more research you can really dial in areas that are likely to do better than others. That is hardly "gambling" where you at best have a 48-50% chance of winning.

I had to move away from Proper on my 2nd property because they have a hard stop rule with cloth wiring. Kind of a bummer because I like their service and I like to keep continuity with vendors but I'm not spending $10-13K on electrical work if the only one who will care is the insurance company!

Went to Foremost because they were the only company I could get on the phone to talk about the policy without much effort. The others required you to jump through hoops just to get an email response, which I always worry is indicative of how they are when you need them. 

I would look at those 6 bedroom and see if you compare. Since there are generally very few, all it takes are a few mansions to throw the numbers off. In my market I see the same thing, because those few homes are super luxurious homes that check all the boxes (location, view, high ceilings, nice finishes etc). 

If your place is similar, it is not a stretch for you to do the same or better.