All Forum Posts by: JR Woolf

We have 2 STRs on tybee.  They are single family homes with pools so our maintenance needs are quite high at times.   If you find any reliable maintenance please share as this has been the biggest challenge on Tybee.  

Trying to analyze a potential deal.  Wondering if there are any property managers or investors who could give us their opinion on gross revenue potential for a completely updated 2 bed 1 bath cottage with private pool approx 2.5 blocks north of duval in old town.  No transient license so would have to be month to month STVR. It is a 800k property that we will finance so will need to clear at least $4500 a month to cover costs.  

@Jonathan Mason. Thanks to you and everyone else for the advice. We would love to continue to grow our rental inventory. Any recommendations on a STVR friendly lender??

Looking for some thoughts on what others would do.  I have a STVR in a beach town that did $120k gross in 2020 with a positive cash flow of about $47k after expenses (self managed).  Recently my wife and I have been watching the local real estate market and are seeing everything being gobbled up at what we consider crazy high prices and it is getting us the bug of putting ours out there to take advantage of the market.  We figured after paying off debt and the cost of the sale and taxes we could net around $460k.  The property is 3 hours away from our main home and has the usual issues that one would expect but it is relatively hands off and we often go several months in between "having" to visit for maintenance, etc.  So it isn't really a headache in terms of managing.  It is located on an island so no real threat of new construction or expansion.  We are both in our 40s and I have a steady regular job so no real retirement on the horizon.  I  know it is impossible to predict the future but so long as it is generating positive cash flow would you keep it?

Has anyone had experience (positive or negative) mitigating cigarette and/or cat urine smells from a home. Also- when looking at a home being sold by a smoker who allows smoking indoors - how much of a discount did you take into consideration when making an offer?

Current Deal- 1948 beach cottage, original wood floors and some tile. Shiplap walls and ceilings throughout (luckily no carpet). Made an offer site unseen because thought it looked like a pretty good deal- however when got in it for inspection it was clear that the owner owned several cats and also leased 2 bedrooms to heavy smokers who were allowed to smoke inside.

Still in due diligence and have alerted buyers agent that we will be going back to seller with a discount on the offer to take into account the odor remediation. Rest of the house is in decent condition for age. Needs upgrades to kitchen. However, before we even consider going through with the deal we want to be sure that the smell can even be mitigated. Plan is to use the property as a STVR but don’t wanna be stuck with a smelly house that we can’t rent or unload down the road.

Has anyone had experience (positive or negative) mitigating cigarette and/or cat urine smells from a home. Also- when looking at a home being sold by a smoker who allows smoking indoors - how much of a discount did you take into consideration when making an offer?

Current Deal- 1948 beach cottage, original wood floors and some tile. Shiplap walls and ceilings throughout (luckily no carpet). Made an offer site unseen because thought it looked like a pretty good deal- however when got in it for inspection it was clear that the owner owned several cats and also leased 2 bedrooms to heavy smokers who were allowed to smoke inside.

Still in due diligence and have alerted buyers agent that we will be going back to seller with a discount on the offer to take into account the odor remediation. Rest of the house is in decent condition for age. Needs upgrades to kitchen. However, before we even consider going through with the deal we want to be sure that the smell can even be mitigated. Plan is to use the property as a STVR but don’t wanna be stuck with a smelly house that we can’t rent or unload down the road.

Our beach and mountain rentals are on track to do just as good, if not a little better, for May bookings onward....

Has anyone ever had any luck getting a lender or appraiser to use AirDNA to come up with STVR comps for underwriting purposes? I have a STVR in an area that is ripe with vacationers but I have no idea how strong or what the long term rental market is like. We are trying to acquire a new property to use as a STVR and the lender is wanting data regarding long term rental rates in the area as part of their underwriting - obviously to offset the cost of the mortgage. I have 2 other STVR's in the area and have given them the info concerning those and what they each pull (easily enough to cover the cost of the mortgage on the new property) as well as the STR history of the property we are looking to acquire (once again easily enough to cover the mortgage). I think that AirDNA would provide a more accurate picture of the market since we will be using the property as a STVR and hope to convince the lender/appraiser to see it the same way.... wondering if anyone else has ever dealt with this.....

I guess it depends on your price point.  We have propane grills at all three of our STVRs.  Nothing fancy just mid range Weber genesis and leave a full spare tank back up.  We figure that if someone is paying $350+ a night they are going to want/expect the convenience of propane.  

@Paul Cox. Did the municipality actually show up and kick out the renters? Just curious how they intend to enforce an ordinance and notify out of town owners?