All Forum Posts by: Jon Martin

While there are markets where this could be true I am  not sure if I agree with this as an overall trend. Every market I've looked at shows a hockey stick increase in revenue when you go from 3 to 4 bed and up. Both the revenue estimate sites and my own enemy method calendar and ADR research shows this to be the case. 

There was a post a while back (can't recall who) that mentioned that the revenue vs purchase price ratio is the most ideal for 1 bedroom units and 4+. To me this makes sense because a one bedroom can host 1-2 people easily with a competitive ADR and cleaning fee, while 4+ beds can host multiple families and split up a higher ADR between more adults. 2 bedrooms can be price competitive with 1 bedrooms and attract the same guest avatar plus small families or 2 couples. However 3 bedroom is the squishy middle where there is only enough space for 1 nuclear family but not 2+, but will require a higher ADR and cleaning fee to be profitable than 1-2 bedrooms. For that reason 3 bedroom homes are my last choice. 

Plus when you filter for 8+ guests in a given market, you may go from 700+ to 20-30 homes. If you are a 2-3 bedroom place you are competing with a lot more places. Again- this may be just the markets I'm looking at. YMMV

Keep in mind that it is not "free" to use your own place because you are taking the place of a paying guest. Especially if you have a short high season which is also the time that you want to be there. Somewhere like the Florida Keys would be an example of where this would not make sense. 

If you like using it during off-peak months, and/or you plan to retire there someday, then it starts making a lot more sense. Especially if you are in markets with opposing high seasons, although finding a winter-peak market is tough in the lower 48 without spending big bucks. 

I agree with the above regarding being clear about your goals. Team, vendor and admin work consolidation is a huge plus if you stay in a limited number of markets. 

Putting together a game room now. Nobody wants to sleep in what feels like a converted garage. If your house can host larger groups/families then it’s a no brainer. 

Plenty of pool tables and most other stuff on FB marketplace. also doing air hockey, dual pop a shot (basketball), skee ball and a multi-cade. Agreed with others here that you can’t beat the nostalgic feeling of a stand up arcade console. 

The only item I changed my mind on is shuffleboard. Seems like it’s one of those item where if you don’t spend real money (well over $1K) then there are issues with warping. Lots of bad reviews for the <$1K tables. They seem to require high quality materials and  craftsmanship to maintain a level surface. Might be more headache than it’s worth unless you are willing to deal with the maintenance and possible complaint calls. 

Would tornado damage require a wind policy?

At your age I would start with a primary residence and house hack a small part of it for STR. Ideally you would look for something with a detached garage or walk out basement where you can give your guests their own private entrance, parking and a small outdoor space. If there is already plumbing in the basement then convert that into another bath and kitchenette. Get the best possible location you can afford and let your guests subsidize your living expenses.

Once you have that rolling and you understand the game you can then invest your W2 income into additional properties. 

@Natalie Medved I love seeing well-booked and high-priced competition with bad decor, it's a good sign that with some thought you can clean up!

I would replace the ceiling fan. It's not terrible, but a newer black ceiling fan will make the photos pop. Similar to the way a new roof helps an exterior.

If you look at professional product photos for homewares, there is usually a single (or at most a small handful of) non-neutral color(s) that is repeated throughout various elements in the room (area rug, throw pillow, bed scarf, vase/sculpture, picture etc). Not only do the colors make the photo pop, the pattern has a naturally calming effect on the mind and implies that your place is orderly in addition to being stylish! Fake plants are great too and add freshness, nobody cares that they are fake. 

Make sure your decor fits the theme of your area, or at the very least don't have anything that is in conflict. Don't have a photo of the Maldives if you are in the Northeast. Finding vintage items that relate to your area and old photographs can add a lot of character as well. 

A 2 day minimum for both Friday and Saturday does the trick most of the time. Even if it does split the weekend, it usually fills in eventually, at least with my listing. 

I imagine that a 3 day minimum for a Saturday would eliminate weekend splitting almost all of the time, aside from the odd Saturday through Tuesday booking. You can charge a bit more for Sunday as well. 

On top of everything above- keep in mind that with every "head in bed" you need to scale up the number of seats at the dinner table, space/seats living room, towels, plates etc etc. Which isn't necessarily a bad thing and should pay for itself, but you are ripping your guests off if 8 people feel crammed and there isn't enough plates and room at the table for them all to eat together. 

@Tanner Lewis thanks for the link. Below is where the confusion may lie:

-The Borrower must occupy the second home for some portion of the year

-The Borrower must keep the property available primarily (i.e., more than half of the calendar year) for the Borrower’s personal use and enjoyment

Looks like that was updated in May 2022, I closed on mine in March 2022 so my rider only included the first of the 2 bullet points above, so maybe they added the 2nd bullet point after?

"Some" of the year could be 1 weekend per year of actually staying in the property. The 2nd bullet point is where it gets vague. Are you expected to have it available for your use 180 days a year but you don't have to actually use it? As in it's empty if you decide to go spontaneously? You would need a fairly flexible job to use your 2nd home that much. 

You sure about that? Maybe with some lenders, but my rider says nothing remotely close to this. It only says "some personal use" with no quantity specified.