All Forum Posts by: Luis Ramirez

Hi BiggerPockets Community,

I’m exploring house hacking using Airbnb as part of my real estate strategy, and I’ve come across a challenge I’m hoping you can help me with. I recently learned that income earned through Airbnb often doesn’t qualify as eligible income when applying for a second mortgage.

For those of you who’ve used Airbnb as part of your house hacking approach, how did you navigate this issue? Were you able to find a way to make that income count, or did you pursue alternative strategies to qualify for financing?

Additionally, I've been wondering if it might be possible to create an LLC, rent my house to the LLC through a formal contract, and then have the LLC operate the Airbnb. Would the income earned by the LLC potentially qualify as eligible income for mortgage purposes in this case?

I’d love to hear about your experiences or any creative suggestions you might have for overcoming these obstacles.

Thanks in advance for your insights!

Best regards,

Luis Ramirez

Hello BiggerPockets community,

I'm currently a homeowner renting out my primary residence on Airbnb and considering the prospect of buying a new property for rental purposes. I've heard about the benefits of forming an LLC for managing Airbnb properties and would appreciate some guidance on the matter.

Specifically, I'm curious about:

1. What are the key advantages of forming an LLC for managing Airbnb properties?
2. If I already own an Airbnb property (my primary residence) and plan to purchase a new house for rental purposes, what would be the recommended approach for transitioning the existing property into an LLC?
3. Is it preferable to transfer ownership to the LLC or consider a corporate lease arrangement for the existing property?
4. Are there any specific considerations or legal aspects I should be aware of when making this transition?

Additionally, I'm based in Michigan, and I would like to know if anyone in the community is familiar with companies or professionals in Michigan who can assist in the process of forming an LLC and managing the legal aspects of transitioning Airbnb properties.

Any insights or experiences you can share would be immensely helpful as I navigate this potential transition. Thank you in advance for your valuable input!

Best regards,

Luis Ramirez

Hi Danielle,

I am also from Royal Oak, Mi, and I can say that I believe it is a great place to invest. I currently do Short Term Renting as an Airbnb and after a learning curve, it has been going really well this 2023, a lot of people see Royal Oak as being in the middle of the Detroit Area, so they like this location. 

You can also look into doing Medium Term Renting, since you have the Beumont Royal Oak hospital in the area, and there are a lot of traveling nurses that have monthly contracts to go support the staff at the hospital. 

Let me know if you would like to connect or if you have any questions and I will do my best to answer.

What home insurance do you guys recommend to have on a short term rental? Do you have an insurance besides the Airbnb cover that is provided?

Any answer is appreciated.

Thank you!

Hello everyone,

Do anyone know of a site similar to AIrbnb or Vrbo that is dedicated for Travel Nurses? Has anyone find success targeting travel nurses through this websites? Is there a different strategy that you use to target travel nurses? Is it better to approach the hospital somehow and get contacts like that?

Any help is appreciated

Hello everyone,

I recently started an Airbnb on February of this year, I have a 2000 mortgage payment and I am not sure how to calculate the amount that I should be charging per night. This Airbnb is located in Royal Oak Michigan, which is a really central location to the Detroit City Area, which is why I believe is a good location. From what I have noticed this last couple of months is that the place is usually only rented on weekends. I would like to ask to you guys, what are the factors that you consider when calculating your nightly rate?

Below is a link to my Airbnb, if you could give me some feedback on what you think of the listing it would also be much appreciated

Airbnb Link

Thank you!!!

Hello everyone,

I just have a general question about the strategy of house hacking, I understand that the point of house hacking is that after a certain amount of time you buy a different a new property and then house hack that property until you get to own x amount of properties and create a good portfolio. The part that I am a little confused or not truly understand is how do you get to buy a second house, Im assuming that you need to take a second mortgage but by doing that wouldnt you receive a much lower loan amount since youre in debt because of the first mortgage, or your dept to income ratio is higher that you would qualify to a good amount to get a second mortgage.

If anyone could help me understand this it would be much appreciated!

Thank you!!!

Hello everyone,

I am a new investor and I recently have been watching a bunch of netflix shows that do home remodels, that got me thinking about what if I can look into doing that or at least try to learn a little more about it. One of the things that I am not sure about how to go about is what do more experienced home buyers look on a house that they are trying to flip? is there a list of minimum things that you have a house should have in order to see if it is worth it? What is your general criteria?

Any comments are appreciated

I am a new member of investing in real estate, and I have seen and heard things about people creating an LLC and running their properties like that. I am a little confused because to my understanding the LLC would be like a business and I believe you get better tax deductions. Could someone explain to me the benefits of doing this? Is this more of a having multiple properties thing? Do you have any personal stories about having an LLC for your investment journey?

Any help is welcomed.

Hello everyone,

I was  just wondering what are the places that you guys think its best to buy furniture for a short-term rentals? is it IKEA? or just good old facebook marketplace? let me know what you think.

Also wondering which mattresses do you prefer? I know some mattresses can be expensive but I am sure someone has found a brand that its comfortable enough for a good price