All Forum Posts by: Madheshwaran R.

Just my 2 cents on condos, as a PM and broker in FL:

1 - Most do not work, whether restrictions on lease duration, or due to the numbers because HOA fees cause low ROI.

2 - Check rules in your state to make sure you are grandfathered in case HOA changes the rules.

3 - Most SFR do better than MF not just because of HOA but also because there are low barrier to entry for 1,2, even 3 bedroom units. For the 1/2 BR you are competing not only with other STR's but also in a sense hotels.

4 - The Tall Timbers being STR friendly will this cause saturation with a bunch of new units coming available in the same development?

That said I do manage some very successful condos.  They can be great if well vetted.  Good luck!

I would personally never buy a condo for a STR.

HOA fees

Too many rules

Rules can change

Usually too many other condos therefore nightly prices are depressed.

New assessments for upgrades or repairs can be costly and you must pay them. 

Hey, Madheshwaran

Fellow short term rental owner/operator here. I have 3 pieces of advice to consider. 

1) I’m unfamiliar with the specific condo you mentioned - but as a general rule of thumb when it comes to condos.. I would always check the condos fine print rules and regulations and see if short term rentals are allowed at the building. Sometimes condos have stipulations in their deed restrictions that go against doing short term leasing, so I would definitely get your agent or do the research yourself to ensure this isn’t the case at the building you’re looking at. It seems like the condo you linked is almost geared towards short term rentals, so you should be in the clear on this specific situation. 

2) I would take a look at some STR data either via a dynamic pricing software (pricelabs, wheelhouse, etc.) or take a look at Airdna to take a look to see what is the "sweet spot" is in terms of size of rentals in your market. I personally am in a college town and my target audience tends to be single travelers, and or couple(s) traveling to visit campus or visit their student at school.. so for me in my market the 1 bedroom / studio units are the best ROI in terms of occupancy and revenue per sqft, I believe.

3) I'd open up a convo with a few local hosts and see what their experiences have been and chat with them about their journey. Ask them what has brought them success, what works and what doesn't, etc. Most markets will have some sort of local STR host group on Facebook you can join, or I would even do a quick search via Airbnb and find a host that way and message them and ask them to lunch or coffee to pick their brain. Chatting with local hosts will do wonders in terms of advice and insights.

Hope this helps and have a great weekend! 

If you need any assistance with design, renovations and furnishings - we are in that area!

Have you considered using a service to help you select a market and home? STR Search is great. I'd be happy to make an intro if you want to see whether or not they'd be a fit.

@Madheshwaran R. the commercial loan and all of the LLC transferring is massive overkill. Connect with a good lender like @Joshua Jones. Do an investment mortgage or a second home mortgage and keep it in your personal name. I am guessing you don't have tons of capital, so you aren't really "protecting" anything with and LLC and all of that stuff. 

Hi there @Madheshwaran R. - I have an STR here in Chicago and the only reason I keep the STR is because I have been grandfathered in since it's been over 5 years.

In all honesty, you are better off doing a long term rental then trying to mess with a short term property in Chicago these days.  It is very challenging to get your AirBnB license unless you are renting out YOUR UNIT or you do 25% of your units if you have over 6 units or something along these lines.

The only way I'd advise STRs in Chicago would be if you are going operate a business to scale and had the resources/local knowledge to do so.

I'd actually highly suggest Michigan because there is WAY LESS restrictions.