All Forum Posts by: Richard Ibeh

@Wes Short just another tip.
You will be acting as a property manager so do not approach the landlord asking to sub-lease their unit. Instead, rephrase it as a "guaranteed income" owner agreement as in essence, you will be purchasing X amount of months to use their home for profit as a vacation rental.

Personally, I have never offered this to my clients because it's risky in my location(hurricanes) but it's a great concept that I intend to try soon for my own research.

@Jean H. HOA > City/State. If the HOA says no then there's nothing you can do so don't waste your time.

In regards to the license - it cannot be transferred so you wouldn't be grandfathered in. Each owner has to apply for a new STR license when they acquire a property and that's when the clock starts for them. Please inform that realtor that it's not a potential vacation rental.

Just based on the realtor information I would have discarded it. If the HOA says no but allows even one person to operate their unit as a vacation rental that opens the floodgates for everyone to defy the HOA and rent short term. That's when you get in the game of "when you tell Jean to take down their listing I'll take mine down...". Once the rule is passed everyone has to abide by it or they have to issue fines or whatever their corrective measures are.

@Gregory Wesley 
Is water covered by HOA?
For 550k does it come with a pool? If it doesn't you should find a cheaper rental.
How much sqft is the home as AC is a huge cost depending on the size.

Marketing is very low.
Airbnb charges 3% per booking so let's say $600 for 14 night is $252 to Airbnb.
VRBO is $499 annually and if you plan to expand to booking.com/tripadvisor you are looking at 15% per booking. Now you can add the fee charged by the marketing channels into your rental rate but need to ensure it doesn't overprice your rental.

Repairs - $1200 annually looks very low but if you're very handy that will work considering you will be putting in all new furniture/appliances.

Credit Card fees.

In regards to HOA - please double check if they allow rentals before purchasing. You don't want the tides to change when you purchase and they begin enforcing their rules thus wasting a considerable amount of time/money.

@Josh Stack I have managed multiple Class A units in one complex but not owned so can only speak from the management side. 

1. Considering you already have one there have you rented it out as STR before?
2. Are there any restrictions from your HOA? 7 night min/30 night min etc.
3. How many townhomes in that resort area? If there are hundreds renting out to guests you will be competing with who can offer the cheapest rate just like the Disney resort area in Orlando.
4. Do they allow property managers not affiliated with the resort? If yes, I would search all of them on VRBO and shoot them a message. Tell them you noticed they managed a few townhomes in that community and you are interested in purchasing one with the intent to use their service. What are the pros/cons and the average returns they are seeing?

I would request what kind of occupancy they have seen year round and if all the numbers work go right ahead.
Personally, I would only purchase multiple in the same community if it's a boutique development aka making me the majority owner. When there are too many voices the dynamics of the resort area can change really quick.

@Alizee Paradis that definitely changes things. In general, condos in Brickell area are not the greatest investment because the HOA fees are as high as $500-1000/month + mortgage for a 1bed or 2bed that offers less than 1200 sqft. If you are fixated on living in a condo then pursue it since that's your personal preference and you will be living there. I almost bought water view condo in brickell myself in the past so I know the temptation to live in a nice high rise in the middle of everything.

In regards to condo rentals -as far as I know so don't quote me but I check quite often. There isn't a building in that area that allows short-term rentals. You will see tons of listings on Airbnb advertising multiple condos but that's mainly due to their building not enforcing their regulations. However, that can change at ANY moment. I rented a client's unit for one year with no issues then suddenly a new HOA came in and began searching Airbnb which led to multiple fines.

I won't advocate for breaking your condo rules but if you're only renting periodically and your listing won't be advertised 24/7 you will more than likely be fine getting a few renters out the year when you're traveling.

I usually purchase the nonsmart TVs and buy a Roku, Apple TV or chromecast separately for that exact reason. 

It's really hard to argue that a "dumb TV" randomly broke- it's either accidental, intentional or age.

@Rachel Kokosenski Go the streaming route. It's becoming the norm for vacation rentals. Ditch the cable and just keep high-speed internet. Emphasis on high speed...rentals with slow internet speed always disappoint guests.

@Alizee Paradis I would not recommend any condo for Short Term rentals in Downtown Miami/Brickell or just in general. The HOA fees alone will eat away your profit plus the cost to purchase will not be worth it. Also, the condo association can vote out short-term rentals which majority do.

Just my thoughts.

@Wes Short Many individuals are going that route. I also know a few startups that are strictly leasing properties so they can furnish and advertise as a short-term rental.

If you are able to get some investment funds and acquire multiple homes from your inner circle (friends/family/co-workers/associates) it can be worth your while. That way you have a portfolio of homes under your management which any landlord you pitch to will want to know/see before they hand over the keys.

Just know most landlords in this model request above market rent so you have to be really confident you can cover that cost plus some or you'll easily drain all your money.

@Daphne Roberts Unfortunately, once you advertise on the major platforms you'll be subject to every type of renter in the world. If you are worried about potentially renting to the bad apples who are not quiet then long-term rentals will be your best bet.

If you do insist on doing short term then adding more baby items will help your case. People traveling with toddlers are generally very respectful of your property.