All Forum Posts by: Michael Calvey

 Hey Mike - Cool to see you advertising your podcast here on BiggerPockets in your signature along with your website. I'm sure that's unintentional. 

It would be very good to hear from some executives at Baselane, Hemlane, Hospitable, who have tens of thousands of landlords across the country, share their insights into the subjects @Jamie Petraglia is asking about. 

For years, there have been claims that take away housing supply from renters and homebuyers and, as a result, inflate rents and home prices in nearby areas. But new data is saying something very, very different.

Taylor Marr, Senior Housing Economist at Airbnb, chatted about how Airbnbs affect the economy, affordability, and housing supply. https://www.biggerpockets.com/blog/real-estate-1008

So, I was reading this book a while back called "Setting the Table" by Danny Meyer. He said something that really stuck with me: hospitality is all about making the other person feel like you're on their side.

And guess what? As short-term rental owners, we're totally in the hospitality biz now!

Think about it - when was the last time you called a hotel to ask about Wi-Fi or check-in? Probably never, right? That's because hotels have this whole system figured out. But our world of short-term rentals? It's like the Wild West out there!

Every place is different. Maybe you do self-check-in, or maybe you like to meet your guests in person. Your check-in times might be super flexible, or you might only do afternoons. And let's not even get started on how tricky some of our addresses can be to find!

Communication is the name of the game. It's not just about being nice (though that's always a plus). Good communication actually makes your guests' experience way better. And you know what that means? Better reviews, baby!

Remember, our guests don't know what to expect. They might be a little nervous or unsure. But if we reach out, answer their questions before they even ask, and make them feel like we've got their backs? That's when the magic happens.

The team at Hospitable has a great blog post about how to communicate with short term rental guests that I encourage you to read. 

If you had to buy your first investment property again, what would you do differently?

Do you think the tips in the guide, Real Estate Investing For Beginners, are still applicable in 2024 and beyond?

I just read an interesting article on Business Insider about the potential resurgence of home flipping and the BRRRR method. I'd love to hear your thoughts on this!

Key Points from the Article:
Our very own @DavidMeyer, our housing market expert, and host of the BiggerPockets Real Estate Show believes home flipping and BRRRR are due for a comeback.

Reasons for optimism:
1. Expected Fed rate cuts could lower borrowing costs
2. Bifurcated home price appreciation (renovated homes seeing more upside)
3. Increased profit margins for flippers since early 2023
4. Higher ROI on renovations in 2024 (75%) compared to 2023 (60%)

Potential challenges:
1. Rising labor and material costs
2. Need for conservative underwriting and careful forecasting

Questions for Discussion:
1. Are you seeing these trends in your local market? Any uptick in flipping activity?
2. With the possibility of interest rate cuts, how might this affect your investing strategy?
3. For those actively flipping or using BRRRR, how are you managing increased labor and material costs?
4. What's your take on the risk vs. reward of flipping in the current market compared to other strategies?
5. Looking ahead, do you think we're entering a "golden age" for flipping and BRRRR, or are there still significant headwinds?

It's great that you've built equity, even if cash flow is currently negative. To improve your situation, have you considered diversifying your marketing strategy beyond just Airbnb?

Here are some ideas that might help:

1. Multi-platform listing: Use a channel manager like Hospitable to list on multiple platforms (Airbnb, VRBO, Booking.com) to increase visibility and bookings.
   
2. Hospitable.com can also create this for you. Create a dedicated website for your property to accept direct bookings. This can increase your profit margin by avoiding platform fees. Are you using Hospitable now? 
   
3. Social media marketing: Develop an Instagram strategy to showcase your property. Consider collaborating with local influencers or travel bloggers for exposure.
   
4. Local partnerships: Connect with local businesses, wedding venues, or event planners for potential referrals.
   
5. Targeted advertising: Use Facebook/Instagram ads to reach potential guests interested in Smoky Mountain getaways.
   
6. Seasonality strategy: Adjust your pricing and minimum stay requirements based on local events and peak seasons.
   
7. Long-term rental mix: Consider mixing in some medium-term rentals (1-3 months) during off-peak seasons for more stable income.
   

Have you tried any of these strategies?

What's working well for you so far in terms of marketing and bookings?

@Miles Hobson Does this seem like a good approach?

 I love what you are thinking about. We'll be launching something very soon about passive real estate investing like you are interested. Join our waitlist on it. It's coming real soon...

You're right that passing on legitimate increased costs to customers is a normal business practice. One which I fully support.

The article highlights how rising expenses for landlords are contributing to rent increases, not just profit-seeking.

However, it seems like what Joshua mentioned regarding, AMH & Tricon, is simply about adding fees that offer no value in order increase profits. 

But, I want to address your comparison to BiggerPockets.

Our situation is quite different from the large rental companies mentioned.

At BiggerPockets, we've actually worked hard to keep our core membership costs stable while significantly increasing the value we provide. Our Pro Membership has remained at $39/month, even as we've added tons of new features and content.

We've invested heavily in tools like the Market Finder and Deal Finder, partnered to offer free RentRedi subscriptions, and expanded our podcast lineup with shows like The Money Show, The Rookie Real Estate Show, and On The Market presented by Fundrise.

All of this is aimed at providing more value to our members without hiking prices.

While I understand your perspective, I don't think it's accurate to compare our approach to the fee increases mentioned in the article. We haven't raised membership costs, and we're constantly adding new features that bring more value to our audience. If we ever need to adjust pricing in the future, it will be to support continued improvements and expanded offerings for our members.

Our goal is focused on delivering more value to our community. :)

@Joshua Mumford Wow. This is frustrating. "Tricon Residential, iincreased its fee revenue by 42% since the pandemic." Its a bit predatory to me.