All Forum Posts by: Jon Martin

I 100% agree with what @Travis Timmons says above, his journey described above mirrors mine a lot, albeit his numbers look a little better haha! I did a value add on my first property that got out of hand but now does well. Recently went into contract on my second that is mostly a facelift with room to add 2 bedrooms into existing floor space, which should be possible for <$25K. I don't even consider anything that can't fit at least 4 bedrooms, your competition shrinks dramatically at 4+ bedrooms and your revenue potential hockey sticks. I also look for game room space. 3 bedrooms that can't be expanded are the squishy middle because it's too big for a couple and is priced higher accordingly, yet is also too small for more than 1 family. IMO you are better off with either a small 1-2 bed unit that is easy to clean, economical and is great for 1-2 people or a 4-5+ bed property that fits lots of people. Which isn't to say that a 3 bedroom can't do great because many certainly do, but for that money it is a small premium to get 4+ beds with much more potential. 

I would also emphasize that you may want to keep your vacation and businesses separate. With personal use you are taking money off of the table by taking the space of paying guests, especially if it's high season. The exception to this would be if you plan to retire there eventually and/or you enjoy being there during the slow season. 

Just made my first direct booking via Houfy. Tried with Square but they don’t do cross border (booking from UK). Setup a Stripe account which worked seamlessly. 

Nice to collect the money from a booking well beforehand and even make a few bucks of interest instead of the OTAs using it for liquidity. 

Sorry you are in this situation but like noted above, it sounds like the decision was made without your input. 

IMO it could be worth doing the off-season improvements and giving it one more high season to see if you can do better assuming you are willing to put some work in. Seek out the opinion of veteran hosts and/or post the listing here and ask for suggestions. Like the Carl's have said, there are often inexpensive improvements that can be made that don't add value to the home but have dramatic returns as an STR (pro photos, string lights, fire pits, pool tables etc).

Good luck!

I live in beach market that is heavily regulated. Next door neighbor lives in the bigger city 2.5 hours away where 80%+ of the beachgoers come from. With their family/friend network they keep it full all summer. Good luck regulating that. 

Several other listings that I presume are not legal do 7 day minimums to cut down on the constant new faces, and this probably filters out the troublemaker guests as well. 

Not sure about this rule but it could be lender specific. 

If this is now a law for all 2nd home loans that would be interesting. Either way, I'm hearing that 2nd home loans are not requiring 3-5 points, which basically makes them a bad move because that could be put towards equity on a 15% down loan. 

I'm doing pretty well on AirBnb but listed of FF for the first few months of the year to see if I could do better for those months with an MTR guest. So far I've been underwhelmed by the lead generation capabilities. At this point I have it up as a test just to see if anyone follows through. 

Great job with the acquisition and rehab, looks amazing and being walkable is a big plus. A few suggestions: 

I get the "country" feel (which you nailed), but not the wine part. I would recommend adding some wine related wall art and items: Wine barrel side tables, map of the local wineries, stuff made of corks etc. Even adding some metal farm implements on the walls outside would help add some character to a large swath of area, such as old pulleys or chains. Etsy and Ebay are great for that. 

Here are a few maps:

https://vinmaps.com/product/texas-wine-country-map-appellati...

https://www.summitmaps.com/Products/Texas-American-Viticultu...

I think that the wall space behind the couch is being wasted by those 2 blank wall hangings. If you insist on keeping those I think you have better photos that you can use for your primary photo, such as the 2nd. 

Overall like I said the place looks great and I would definitely stay there if I was in the area! 

Almost certainly worth it. If none of the recs above are less than $1000 DM then me, I can recommend a company that I am very happy with who did my 2/1 for ~$600. 

 Houfy does not accept payment unless you add a Stripe or Square account. Submitting an ID for verification is voluntary. They are basically a Craigslist for STRs. I plan to have the guest send me a picture of their photo ID. 

I still use AIRBNB and VRBO. The difference is that Houfy is not collecting 15%+ in fees, so I can offer a better price to the guests while also putting more money in my pocket. I don't see myself moving away from them, however I want to have the foundation in place to eventually take control of my own guest lists and not be at the mercy of their rules and algorithms. I also don't like that those platforms collect interest off my guests and my property in the time between booking with full payment and payout 1-2 days after arrival. 

Yeah I hear you, which is why I am cautious as well. That said, I am trying to have options where I don't rely on OTAs so I have to face this issue one way or the other.