All Forum Posts by: Jeffery Wilen

@Mindy Jensen

We use Costco white "Grandeur Hospitality Towels" as we like to be able to bleach them if needed.  Plus, you can more easily tell if they are getting dingy.

For makeup, we provide a couple packages of make-up wipes from the restaurant/hotel store we can buy 200 of them for the price of a couple towels.

There's a reason that hotels use white... its a combination of cost and a consistent look.

I would only use color if we were trying to achieve a specific decor.

Your monthly expenses figure looks low for an STR. With insurance, taxes, utilities, maintenance, management fee and then cleaning and supplies it adds up quickly. That doesn't even consider Cap Ex reserves.
We have a very similar property, and our expenses are close to double your figure. 
You would still cash flow, but at a lower rate than your above numbers. 

@Stephen Kunen

You'll need to have it rented before you can refinance. The lender will want to see the income statement and rent rolls to confirm the NOI.The only thing the appraiser will look at is to confirm that the building and property are as stated. Such as how many units, bedrooms, property size etc.

@Stephen Kunen

Those improvements will help, but not because of any change in appraisal. A six unit building is classified as commercial (anything greater than four) which will have its value based on NOI and Cap Rate not appraisal.
Sub metering will transfer utility cost to tenants thereby lowering your operating cost. In a longer term look, the facility upgrades will also lower your operating costs as you should have less repair costs. 
So in the first year after your improvement changes you should see a higher NOI which will result in an increased property value.

@David Smith Remember, Lots of people don’t invest in real estate too. Don’t use herd thinking as your reason to do something...

@Jennifer Bryan

Airbnb bookings are not connected to a property. They are connected with the account. That account is also connected to a bank account. This is messy any way you look at it.
All of the contact and payment info will have to be changed to your information. And that will only work if your seller doesn’t have other properties on the same account.
If they do have other properties, it’s also not likely they’ll want to cancel the reservations as that affects their rating as a host.

You’ll probably need to contact Airbnb to have them let you know the best way to change this in their system as it is their system. 

@David Smith

Lenders are not the reason I always use an LLC, they'll lend to me with the same terms as my LLC. Protection of my other personal assets from a legal liability at commercial property is why I always use an LLC.
Check with to your tax and legal advisors for your specific situation  

@Jingru Sui

I’d echo a lot of what Justin said standardize as much as possible on things you replace frequently or could get broken/ruined. We also keep supplies in a central location. There is a restaurant/hospitality store close to us where we order our supplies. They supply bulk items as inexpensively as Costco and have a better selection.  

@Dylan H.

That’s absolutely correct. They can discuss cap rate if they wish and it’s one more piece of data for evaluation. But at the end of the day, appraisal valuation for those properties are based on comps. Since at some point you’ll be working with a lender for the property appraisal value is what matters. 

@Mike Shahi

We’re investing in Cecil and Harford counties. They’re farther north than Baltimore, but not as far as Philly. MD has great landlord friendly laws with the exception of Baltimore. Pricing is definitely more affordable than our local housing. Let me know if you want to hear what we’re doing.