All Forum Posts by: Mark S.

@Jay Hinrichs yes that probably reduces the risk and makes sense. I travel quite a bit and have always had good luck overseas, fortunately. And have conversely have had some very poor stays domestically. But my sample size is greater here in the US.

@Collin H. I just checked a reservation that came in for one of our properties today. Total nightly fees were $1140. Vrbo charged $340. So yea, about 30%!! One of the impacts is going to be making it more difficult for guests to afford our nightly rates which is going to create pressure to reduce them. Just what we need with other expenses going up! 

@Jay Lam What exactly do you mean in saying that you don’t have a primary residence? You must live somewhere, don’t you? Or are you RVing or something similar?

@Dan Thomas I actually feel the same as you regarding LLCs. Sure they add an extra level of protection but in reality how much more than having excellent insurance coverage? And no small investor (those with a handful of properties) has ever been able to provide me with a situation where a properly insured owner has been successfully sued and not covered by the insurance. Not saying it couldn’t happen but I’ve never seen it. But if it helps people sleep at night then I guess there is value.

@Jacob Sherman I’ve done this numerous times, as have other investors I know, and none of us has ever had a lender trigger the due on sale clause. I used to work for a large regional bank and I don’t recall us ever implementing this option. Yes, it is possible but it doesn’t seem to happen very often if the lender insiders the Lon a good investment.

@Collin H. Spot on! Yet there are some realtors in the area that continue to preach that there is no oversaturation and things are great. I’m watching a couple of cabins near one of mine that have been on the market for nearly a year at $750k (and not renting well – the owner now has them down to $150 a night). There are going to be some great opportunities in another year or two, but with the insane amount of building that’s still going on you are going to have to be able to hit your numbers at ADRs that are half of what you would’ve gotten a couple years ago. Good friend of mine owns 10 and has been in the market for 15 years. This is the worst he’s ever seen in terms of revenue. 

@Uendy Garcia Keep in mind the $30k will be taxed - state, federal and FICA. Depending on your state and federal bracket you could be paying 30-50% or more in taxes. That really brings your net income in the deal down.

@Justin Melton Reminds me of something that happened to my son at an STR. He was in the upper bunk of a bunk bed, got out during the night to go to the bathroom and the ceiling fan blade hit him in the face, cut him across his cheek and close to his eye. Lucky he didn't loose an eye. Really a dumb a— host to have it setup that way.

@Marc S. I switched from Stessa to REI Hub and found it to be a great decision. Among other things, you can actually talk with someone if you need to!

@Amit Shukla No one has mentioned the claims paying ability if the insurance company. You want to make sure whoever you go with has excellent ratings and is able to stand behind their policies, especially in the event of a major catastrophe. Insurance companies are under extreme stress right now, although most still have strong reserves.