All Forum Posts by: Michael Baum

Hey @Victoria Igoe, so you could give it a try but the fact there are few STRs in the area should be telling you it might not work well.

You are basing your numbers on pure guessing. You are hoping to get 60%. What happens if it is closer to 20%? Can you absorb the 100k you are about to spend? You need to ask yourself, what will bring people to the property? Does it have an awesome view? Can you build a deck that takes advantage of that? 

One positive is the ADU itself. If you make sure it is properly permitted and constructed, it will add a nice chunk of change to the value of the property.

Hehe, don't get me wrong, I will not be building any A-frames anytime soon! :)

You do you @Laura Winters. Glad you have a handle on your bad reviews.

I am getting ready to get everything sorted and out to our CPA so I will take a look and see what I see.

Hey @Laura Winters, thanks for the post and keep us in the loop with your results.

I am with @John Underwood on this as well. 8 years now and nothing by 5 star reviews on both AirBNB and VRBO.

It can be done. It takes work. Super responsive to guests really helps. They can text me direct (or call) anytime with issues. 

Hey @Jewell Arceneaux, yeah arbitrage isn't a thing most of us advocate.

It can work, but the last couple years have been very tough to make that strategy work, especially for new investors.

It is just a job and you don't get anything out of it in the end but a paycheck.

The only time I have said cool to anyone asking about arbitrage is someone who already had a bunch of properties (LTR or whatever) and wanted to give it a shot. They could afford to take the hit if/when it goes south.

One strategy you could look at is buying up to a four plex and finance with FHA. Low down in most cases. Move into one and rent the others. If you do it right, then you could make a decent amount of cash while building equity.

After a year, you can refi that loan into a conventional, go look for another 'plex, move into a unit, renovate your old place, rent it and start all over. You do this a few times, you will have 3 or 4 performing LTR properties and can then branch out.

I don't know if you are married and/or have kids. This strategy can be tougher with family in tow but it can be done.

If I was starting out, this is what I would do. 

They are fun and actually sort of easier to build than a standard home for a DIY person.

I think I could build an A-frame. It would take me forever...but I could do it!

Interesting news. Could have far reaching affects.

Thanks @Craig Jones!

Hey @Kyle Lipko, I think you have your answer. I agree with everyone else that insurance is the best way to protect yourself.

An LLC doesn't offer a ton of protection against what you really want to protect yourself from. Negligence.

An LLC will protect you from contract issues which aren't a real problem but if you don't maintain your property, then you are on the hook for possible lawsuits due to injuries resulting from lack of maintenance.

The best thing you can do is stay on top of maintenance. I head to our lakehouse quarterly at least and walk the decks, stairs etc etc. Anything that could cause injury to a guest.

There can be a popped screw in the deck, loose deck boards or steps, railings etc. Then you repair them asap.

Last year I found 2 rotted steps on the stairs to the upper deck. Couldn't tell just by looking but they were rotting from underneath and when I grabbed on, it split right in half. Yikes.

I also check all the deck joists for loose nails or screws, ledgerboard issues, and rot from underneath.

Same goes for inside. Stair railings are most important to check. I had a guest report that they broke a bracket so I had to have that replaced immediately.