All Forum Posts by: Joseph Bafia

@Keith Shadle

I qualified for my first one solely on My personal DTI, but after that my lender would allow the use of STR income but only once it hit a Schedule E on my tax return.

@Jake Miller

I’ve done mine at 10% down. Traditional financing on a vacation home and fully allowed to rent out on VRBO (or Airbnb). Some stipulations as to personally using it as well.

Already pursuing another under same terms in another state.

Happy to share info and lender referral depending on where you’re investing.

@Richard Scott Dinnan

When I started REI, I was looking at balancing my portfolio with both LTRs and STRs. As I saw the returns of STR and also started building some STR self managing systems, it became easier to scale, manage and get the better returns. So even though I do have 2 LTRs, my focus has really been to grow the STR side for now.

I also maintain my W2 and it allows me to fuel the growth a bit easier.

Hope that helps and good luck!

Happy to answer any questions.

@Jordan Lockaby

Any luck with the list I sent us?

I’m heading out to western NC to look at a property as well…wish me luck!

Love the list...solid and covers about everything.  

We do pay for monthly hot tub maintenance. We also pay an added fee in our community to utilize property as STR. SO as an owner, I pay a POA fee, but then anyone who rents their place pays another $275 annual fee for guests to use the amenities. We also pay for firewood (we provide it for guests)

On our first property, we looked into a STR specific PM and had little success. We talked to a few PMs based on referrals of other owners. As we talked to other owners, they really touted how great their occupancy was. I saw what their rates were and they seemed low. Once I reviewed rates of other self-managed properties in our area, I quickly understood that the PMs get paid no matter what and the more they booked, the more they made so it was more important to get the property booked at a low rate as that guaranteed income for them.

I personally think its also a strategy that Airbnb and VRBO employ with their algorithms.  I'm primarily on VRBO and I get these regular suggestions from VRBO that state "adjust your rate based on changing market data".  Take a look at this real example I got today.

Thats a HUGE discrepancy between what I have it set at.  We will get those rates all day long in July and they want me to adjust to $100?  We also know that most of our bookings take place within 45 days, so to adjust down over 2 months in advance makes no sense.  I feel PMs may do the same thing.

This is not a blanket statement with PMs as I have no doubt there are many good one, I just know that nobody will maximize your profits as much as you will yourself.  My son helps me monitor our rates on a fairly regular basis and we do very well.

As @John Underwood and @Kenneth Garrett state about VRBO for the Premier status, we do think it has helped us.  We are almost always in the top 5 of search results out of approx. 90 rentals in our area.  This is due to a combination of premier status, number of reviews and also VRBO has a Boost system where you earn points and you can boost your position for certain dates.  This first cabin we only list on VRBO and the 2 new ones we have seem to be getting traction on AIrbnb (I can't explain it) so we're working on their superhost status.

Hope this helps a bit!

I agree to check to make sure the town/county you are in allows STRs.  We have several 45 mins north of Asheville and we know that Asheville is pretty strict on rules.  I also agree that if you're doing all that work to build it, make all the profits from it.  If you are going to arbitrage it out, the person who rents it from you will want it at a LTR rate for a lease so they can make money, so in that case, you're probably better off renting as a LTR yourself (and then you dont need to furnish if you don't want to).  

With the cost of construction now, get your estimates for new build.  The other factor is getting a builder (unless you already have one lined up).  I'm hearing big delays in good quality construction in and near Asheville.  It may be several months out.

The lock to the lower level of your 17th unit that a bunch of pirates raided using lead tipped swords to break in and steal you unmatching furniture.

Our cleaner came as a referral from a contractor that did some work for us when we bought.  The contractor came as a referral from our relator who knew that area.  Just start asking around.  What type of area are you in as others on BP may chime in if they know that area.

If you just wanted to do a fun exercise, go to VRBO and put in Myrtle Beach.  You'll see all the listings, what's for rent and what they charge.  Then the next step is to move the map up the coast and the listing will readjust.  

The idea is that you'll see heavy pockets of STRs in various locations and that's usually a good sign.  Then you can put in other cities and do the same thing by moving map around the area.

This is not the end all and definitely other analysis to so, but it will give you an idea of what' out there in various cities and destinations.