All Forum Posts by: Justin Anderson

Originally posted by @Chuck Kramer:

@Justin Anderson Congrats on making that move and even stepping further!!

How long did it take you to get the real estate license? Just wondering what was involved.

Avery is my agent.  I'm just a lowly investor/manager.  This stuff is fun!

Originally posted by @Abe DeHart:

I generally do everything remote, so it's definitely possible.  As far as renting goes, Jan/Feb are slow but the rest of the year is good.

And yes, the cleaners take photos.  They're your boots on the ground and need to be awesome for you to succeed.  

Scaling up is hard after you no longer have the funds for down payments and most of us hit that at some point.  You can read about it all over the flipping forum where they talk about BRRRRRRR for ideas on creative financing.

One more thing to add is be careful of the regulatory environment. I know Scottsdale has some regulations and I assume Phoenix would as well. It'd be a major headache if you went to all the trouble of buying a house, living in it, then being unable to STR it.

Luke had a good suggestion with his 1% rule... Make sure it'd be viable as a LTR in case the winds shift.  (Or put your money someplace else that is more STR friendly)

Originally posted by @John Williams:

I'd be interested to learn how people manage out-of-state STR properties. Just hire a cleaner after each guest stay? Who cuts the grass and takes out the trash?

Just build a team as you go...  You can probably find someone to do one of those on here or through local FB groups or from a referral from a RE agent.  If you like the work and the price, ask for a referral for the next trade you're looking for.

Cleaners will be the most important, so check references and talk to them on the phone to get a good feeling and set expectations.  Your ratings are your lifeblood on the platforms so they have to be 5*.  

Depending on where your STR is, your cleaners will probably take the trash with them (or put it out). Lawn is just like at your house now -- pay someone $20 or $30 for service.

My HOAs also keep preferred vendor lists (and 'stay away' lists) which would be good starting points, too.

I own a 7 bedroom and an 8 bedroom (and smaller) and can answer any specifics you've got on them.

My COC return has been crazy good on them -- way more than my 1 BRs. Since you can afford to take down a big cabin, you'll get great results (assuming you didn't get in for too much money).

Wear-wise, I'd say that generally speaking it's about the same.  Granted, big groups are rougher on the cabins but as long as your decor/furniture/floors are quality you'll be fine.

I have a few suggestions learned the hard way:

-  Minimum night stay is good to help avoid the kind of parties you don't want.  I do 3 day mins with 4 during peaks.
- DON'T PRICE TOO LOW.  I've had a couple of party groups come in and work the cabins over.  When 20 people get together and pitch in $200 each for a long weekend, they will probably party hard.
- Require the booking party be 25 years old.
- Request a copy of their ID.
- Be prepared to handle damage claims within hours on same day turns.  I had one group that spilled alcohol and OJ all over the entire first floor, literally break the door off the oven, and have wars with trash in the front yard.  I submitted an 80 page claim with airbnb within three hours and the host guarantee paid out $1700 within a couple of weeks.

I started managing the cabin myself after one of the large local shops wasn't maximizing my money.  (After all, if they have 300 cabins, why do they care if you're at 40% utilization instead of 80-90%?)

Totally happy to help guide you through this.  It's a wild ride!

Man, I'm so glad I didn't buy in Galveston when I was looking there.  It really irks me when a city starts telling us what we can do with our properties.

Do you know if there are any grumblings about doing it to Galveston proper and not just Jamaica Beach?

I'm in Pigeon Forge and just for grins got Evolve to give me a quote on two of the properties I manage last year....

1 Bedroom:  They quoted 32k revenue.  MAYYYYBE 34k after I pressed them.  I pulled in just over 40k.
7 Bedroom:  They quoted 90k AT BEST.  I made 125k.

I just took over a 1BR in January that was run by them and the amount of bad reviews was staggering.  A < 4* listing.

The photography was top notch and the description was good.  However the attention to detail for your investment is very lacking.  

I'd say they may be ok for someone that doesn't want to pay the typical management fee but also isn't interested as much in maximizing their income. 

I use an erentallock and wrote some code to generate a new door code (specific to a guest) and then send the code email out (through igms).  No need to worry about wifi/bluetooth issues and unique codes per guest so they can't check in too early or leave too late.

Originally posted by @Kurtis Eaton:

the people who have invested in STR in Gatlinburg and other, well established, vacation destinations would have a different opinion I believe. I think the key is selecting a very mature vacation market where those issues have been decided.

Totally agree with you there. There are certain pockets in the country that aren't overrun with city councils that want to make their mark... Or the hotel lobby greasing palms. Pigeon Forge is definitely one that is STR friendly.

 2 years ago I would have said airbnb everywhere but just watching regulations come up would make that a scary investment in a "normal" city.

I own and/or manage cabins in the Smokys and across all of them I've only had a single question about what we're going to do if it becomes a problem.  

I verified with my two main cleaners what cleaners they use and that it's bleach/anti-bacterial and not just smell good Fabuloso or something.