All Forum Posts by: Philip Williams

Call me in the minority here but you don't have to buy this particular deal. I found a great 8 plex with all old tenants like this, some had health issues all were on fixed incomes. I couldn't make the numbers work without kicking them out so I simply didn't buy it. Another 8 unit I bought had 1 lady who has been there since before I was born, I could make the numbers work without getting her rent to market so that's what I did. All this it's a business is well and good but if we are supposed to be the best of the best I'm sure we can find a way to build a portfolio without kicking seniors on fixed incomes out right??

@Juan Camilo Lovera Welcome to the neighborhood! If you have any questions feel free to shoot them my way. 

@Alicia Marks Rockford IL very far from a vacation rental market!

Just started our Airbnb in August we were able to combine several strategies. First we were able to purchase it distressed and off market which was key to getting a great price. Then we were able to have the vision to utilize the house to it's full potential, sleeping 16 adults and using every spare inch of the property! Overall we will be in for about 350k and expect our average rent to be in the 20k a month range. Our current highest rented month is 16,500 and we have 9 bookable days left! I would share a link but not sure if that is allowed lol! We will be brrrr this property shortly the lender has just ordered the appraisal!

Be careful in areas that don't have consistent cleaners. This is the single biggest issue we underestimated with our str we just opened. Ours sleeps 16 and while we assumed some parties would be smaller and some larger it seems most gravitate towards larger rather than smaller parties. We set 5 hours between groups and we have a full time cleaner already on staff and we weren't even close. We ended up hiring another person just to deal with the bnb turnovers. Lesson learned and this one is 5 minutes from my house, I can't imagine if it was hours away. 

They live with private landlords, I was amazed the number of posts in my local rental groups from tenants saying private landlords only. Then multiple prospective tenants commenting things like following me too etc. There is a large group who for whatever reason wouldn't qualify if someone looked into there background. This group is savvy enough to understand that almost every property management company does at least some degree of screening. The result they have figured out that in there minds private landlords are golden. 

I'm pretty sick of the Rockford is terrible people, every decent sized city has it's good areas and has its bad areas. A new casino is being built less than 2 miles from me also, I'm very comfortable with the location. 

So for the few who commented on this thread we are up and running. Since there are no comps I just priced it however I felt appropriate and will adjust as data comes in. I set a 2 day minimum and 450 during the week and 599 weekends. I booked every friday saturday within a couple days. So I adjusted and changed the weekends to a 3 day minimum which hasn't slowed bookings at all. I believe it is harder in the beginning without reviews which bring you credibility. 

airbnb.com/h/rockfordoasis

I could tell you a story about a whole 6 in subway sandwich smashed down into a disposal.....

Hi and thanks for the responses! It is not in what would be considered a vacation town, however the "luxury" bnb's that I have found in my area on Airbnb and vrbo are doing quite well. It is less than 5 minutes off of a major highway which is nice and fingers crossed a casino is in the plans about 5 min away which would be a nice draw as well. Of course I would like to maximize profit, but I don't expect the nightly rentals you would get in a major city but if I could average 75% occupancy at 350 a night I would be absolutely killing it! 350 a night is actually much lower than the other luxury bnb in the area but I have run all my numbers very conservatively. The best part was I bought the property distress and was able to rehab it and capture some value that way as well!