All Forum Posts by: Michael Greenberg

I believe you are correct Eric, which likely accounts for the 5-10% delta.  As an investment tool, it has been quite useful.  I haven't spent a lot of time with their MarketMinder as without integration with the OTA's I might as well manage the pricing myself.  I know of another tool that is coming out in the next 6-12 months that will add additional functionality and address the blacked out dates.

I think it depends on the area but it was between $200 - $350 last I checked but it's been a few years.

@John Clark Airdna will sell you their raw data (I have purchased) in spreadsheet format, just reach out to them.   It's a lot of data, so if you're good with spreadsheet, it's worth the purchase. They also now capture HA/VRBO data as well and I recently witnessed their accuracy being in the 90-95% range.  

Mike

I use turnoverbnb for my cleaning crew, it's free to use if you have your own cleaners and there is an app they can use to complete their tasks.  I know a number of hosts that use more than one OTA are using OwnerRez for automated communication and they have a number of other features as well.  I have yet to convert to WiFi locks, I use Schlage dead bolts and send each guest one of 16 unique codes I have programmed.  It's also nice as my cleaners and any handy-people that need to enter can use as well.  To avoid after hour calls, rip and replace any old appliances and even A/C & Furnaces.  In the long run you'll save over dishing out a large % to a PM.  Knock on wood, it's been a long time since I've had an after hours incident.

That is a LOADED question @Jason Miller!  After heeding @John Underwood's advice I would explore a number of options, including but not limited to multiple units on each or one of the lots. I would also look at alternative building (as opposed to stick build) that could expedite your completion, e.g., manufactured homes, log or otherwise as they will also lower your cost. You'll want to make sure the county allows "manufactured homes" on a lot. I would also explore the County restrictions. STR's are about right-sizing for your location. Is it a big lake? Boats? Will you have a dock? Other activites? What size families are likely to rent? What's the competition in the area look like and what are there ADR's (nightly rental rates). I think once you understand some of these basics you'll start to get a feel for what you want.

So the F&F and Rental is only worth an additional $10k?  Don't get me wrong, I haven't figured out how to package this either, but I'm working hard on it as I believe there has to be a model to package this.

Thanks for posting Ben. What would the house be worth without the STR?

@Brad Johnson My most recent sale was planned far in advance so I could manage through my high season and sell when the market cooled a bit.  I then blocked my calendar for the following 6 months (just in case it didn't sell) and my loss was very negligible.  It would have been very difficult to manage in-between showings and I wanted a full-court press on the sale of the place as quickly as possible.  A few other ideas may be to: 1) push the closing out until your last guest in August (likely to limit your buyer potential), 2) manage the rental (for a fee or split) on behalf of the new owner through your last guest, 3) capture a split on the rents from the buyer, 4) sell the bookings separately to the buyer.  There is another recent discussion here on BP about selling "the business" (not just the real estate) that I am working on sorting out, but that would be an entire business, not just a portion of it.  Take a look at that thread, it might give you some ideas.

Two concepts surfaced from my meeting with the bank. I brought along a financial package that included a P&L, Balance Sheet, and Cash Flow for the past 3 years. At first he was a bit perplexed and didn't quite follow my logic, however he did eventually "get it" though he was non-committal. He used a similar example of loaning on a senior living "home" (some investors buy a home and create boutique senior living accommodations). He was able to fund this as a "rental" with no differentiation between short term and long term rentals. As we discussed this further, another idea surfaced of using a Solo 401k / Self Directed IRA to complete the acquisition as the bank would only secure the real estate in the transaction. I have purchased an STR with my Solo 401k, what a great way to increase the value by using my own investment. There are obviously rules around each of these financial facilities, but well worth thinking about. Next move will be my CPA to gather his opinion of buying the business that includes the RE. Ce may not have any near term availability during tax season. I will post again when I connect with him.

There are so many opportunities for this, however it is difficult to manage from far away.  Interestingly, Airbnb wants you to sell "experiences", and of course they have their own to profit from, but it would be nice if they provided Hosts the ability to manage these on behalf of the guest. (Same goes for HomeAway).  At this juncture I make recommendations to my guests in my Welcome Guide.