All Forum Posts by: Kyle Parks

 If you disclose what you are seeking to do its not unethical and your local laws will tell you if its illegal. 

the issue is this - what happens if you sign a year lease and your airbnb fails? 

What if a situation like covid hits? (There were some people who used the strategy you speak of and lost their shirts from being overleveraged) 

you will be going against people who own their property and when we break even we are paying down our mtg with OPM. At that point you are paying someone else's mtg and not making a profit.

What if you create an awesome property get great reviews and your landlord kicks you out after a year? What if he sells the property? 

End of the day there are too many things out of your control

I just found Luke Carls' enemy method. Its pretty solid imo. 

with that said - I would assume the issue would have something to do with rising home prices, and STR rates not pacing the market.

For example - I bought my double for 110k 5 years ago. Renovated and started STR (self manage) a year ago. A home down the street sold for 235k last year, they hired a PM. we went all out and spared no expense. To make their numbers work they had to buy cheaper furnishings.

fast forward 9 months. We are at 100% occupancy on both units. They are at 35% or so. They simply cannot compete with us. They have to charge more for an inferior product. 

Try using a tool like AIRDNA. 

@Dale Nesmith

Come by sometime. I will drive you around and you will see :)

Honestly though- I'd imagine it's because the city of Cleveland is poor and needs the money. There are some parts of the city that are absolutely amazing and there are some parts where every other house is a boarded up crackhouse.

Cleveland is all about location. Look up Mr. Wise's guide to grading Cleveland neighborhoods

@Carolina Chang

On multifamilies you should expect to pay the water. Cleveland has tons of doubles and the units typically have their own gas and electric as robert said

Hire someone. Please for the love of god. We did our floors this past summer. NEVER AGAIN. Lets just say that we are lucky that distressed floors are "IN" 

Good points. We already have a client and are currently designing / building out his property. It is just hard to quantify the exact value of what we will bring our clients. I guess that would be measured in the potential for increased revenue. I was looking at this from the wrong angle. 

 Because many people do not want to deal with managing their property, be it through managing someone in India or handling the calls themselves. There can be massive value in teaming with the right people. We outperform our market significantly. We turn people away due to being at capacity while most others struggle to hit 40%, and some of those are in more desirable locations. Bad layout, design and customer service makes them far less desirable and turns people away. If you add enough value your customers will have a smile on their face when they cut you that check every month.   

@Philip Cook

Its odd to me that a motel can exist as a rent per hour type spot but you cannot have 1 night stays.

So - most people HATE one night stays, more work more cleaning ect. Here in cleveland we get alot of pass through traffic from the heartland to the eastern seaboard. It keeps us at 100% occupancy.

With that said - are people passing through your town or are they there for something? Are you close to a larger city, or destination?

Those would be my only concerns.

The upside is pretty big though. Being the only airbnb operator in your town would be huge. I would dig into the law and see if there is anything you can do. If a motel existed, a face-lifted airbnb would kill.

@Paul Sandhu

I agree! But many people like the extra money a str brings but not the work. Also - I love reading your stories.

Absolutely. We do not put photos up so when people arrive there is a 'wow' factor. I can understand the objections, but honestly the amount of people that mention it in a message outweigh the people who don't. we spent aprox $200 on decorations for each unit and we will have them forever (fake tree).