All Forum Posts by: Jeffery Wilen

Quote from @Zach Edelman:

Quote from @John Underwood:

Don't put all your trust in Airdna. I've heard of people.doimg that and losing money.

Check your comps manually using the enemy method.

What's the enemy method? 

A methodology for analyzing an STR. Do a search for it in this forum.

You are able to pay the health insurance premiums through your business so they are a deductible expense. Better to use pretax dollars. Thanks to the ACA. 
Just be aware that if you have employees, you have to offer them the same plan you are using. 

Going west from Colorado is generally not going to get you better price to rent ratios. Much of the investor returns further west are for appreciation, not cash flow.  That's not a blanket rule, as there are pockets that do have higher price to rent, however they're usually in less desirable areas.

Use a spreadsheet that includes the “cosmetic” items that you feel appropriate for the type remodel you’re thinking of doing. Using the specific item prices, come up with your own $/sqft. It’s not going to be the same as other locations as rates vary even within ND.
I know for us, at $25/sqft we could probably only do paint, new carpet, vinyl, plumbing & lighting fixtures. We could not do sinks, doors, trim, cabinets, counters, roofs, siding walls and the like. 

As others noted, only allow late checkout when the next night is open. Never hold it open to accommodate a late checkout. We also charge for a late checkout, as it inconveniences our cleaners and they charge  us. We double their fee and are fine with whatever choice the guest makes. 
We’ve found that they respond better if they have an option and aren’t just told no. 

Quote from @Manuel Alvarez:

• yes Fannie Mae has 80% ltv with a 30 year fixed rate financing and non recourse.
• there are also lenders that do 
• Current interest rate today is 4.75% with 35 year term and amortization
  
• 85% loan to value
• Fully assumable and non-recourse
• No yield maintenance or defeasance at rate lock.

 Doesn’t Fannie Mae have a $1M minimum loan amount? I’ve been told that in the past. 

Trevor,

Congrats on making the decision to get into RE.  Advice given by the other posts are spot on. Other consideration that we've found critical is housekeeping and local handyman.  Since you're not in town, you'll need both.  They are critical to your success, just note what some of the other high volume posters in this forum have said.  Even if the numbers look good, without these two you'll struggle to have success. Speaking from experience, until we dialed in a fantastic cleaner our properties were very meh.

Something to consider for Florence vs rest of the OR coast is proximity to Portland or type of destination.  Demand will be lower than those closer to Portland or Bandon for its destination draw.  You'll likely see more seasonality than those other locations.  On the other hand, probably lower property costs there vs other locations.

We've looked at a couple locations on the OR coast, but as a WA resident adding the OR income taxes have made other locations more attractive for us. Also be careful with the STR regulations being considered in many jurisdictions, do your research.

Best of luck

Quote from @Austin Davis:

Awesome!  Thank you @Jeffery Wilen.  Does that work with a deadbolt or can you open it from the inside with the handle and not the code?

We have both depending on the door. For doors that you want to exit without unlocking a deadbolt, we use handle locks that don’t require a code. For areas that we want more secure, like a storage area we use a deadbolt lock. 

Quote from @Bruce Woodruff:

@Jeffery Wilen I can see making exceptions in your case. My particular place is right downtown in a city known for parties, I need to be careful...... :-)

Completely agree with that, I’ve “declined” more than one inquiry for those as well. We book primarily through Airbnb, so need to be creative when declining. Have been known to send a special offer for a one night $5,000 stay for a 800 sqft unit LOL… since guest declines don’t affect ratings. 

Typically multifamily investors do not renovate all of the units at one time. Most of the time they are renovated as the units become vacant. At times the LL may incentivize the tenant to relocate or not renew a lease in order to vacate the unit for renovation. As mentioned by others, the process for non-renewal or termination is jurisdiction specific.