All Forum Posts by: Nagesh Kakarlamudi

@Taylar Colangelo For STR there is more and more pressure to treat them as hotels or inns. Meaning you will have to pay taxes and may have safety inspections.

Have you factored in the fees for AirBnB VRBO etc. You may need an additional cohost to do some ground work between tenants. You may need to keep some supplies toiletries etc.

STRs will have more wear and tear. So budget a higher repair costs. May have to yearly paint, furniture and appliance replacement

Finally occupancy will be the key to guarantee the expected income. Have to keep up with advertising although more and more channels are opening up.

Keep an eye of city ordinances on STR, the local government may get backlash from hotels if STR is eating into their business.

@Matt Nettles There are few other ways to increase Value Add and help income.

Someone mentioned coin operated laundry. The laundry company will do all the work at their cost. Adding that will provide extra source of income and also boost the Cap Rate at sale. Other ideas:

Look into water sub metering if each unit does not have separate meters.

Onsite maintenance man helps in cutting down costs by doing preventative maintenance. Maintenance in general is a major cost item. You can get a handle on it by renting a storage space and stocking it with replaceable items such as appliances etc. Keep air filters and other supplies.

Check with local cable companies if they want to become preferred provider. They will do all the work at their cost and give you some commission.

Obviously the state of economy in the immediate area plays a great role in future appreciation, hopefully it is on upswing. I would survey the job market for your tenants, if it is growing.

I have noticed that MF has become one of the preferred acquisitions for major Realestate crowd sourcing and REITs. They are good potential buyers.