All Forum Posts by: Richard White

@Julie McCoy, as a fellow film professional (but one who left LA-living a while back), I understand exactly where you are coming from. I couldn't even refinance my house because I didn't "currently" have a job, even though I had already made well over 6 figures that year and had a large savings account. Connection brokers don't get it.

I am currently under contract for two condos in my area that I will use as STRs. I am using a commercial lender at a local bank and getting 5% interest with 20% down. They are working with me mostly because I have good income year to year, even though I haven't worked in 3 months, but also, because I dumped AirDNA data, Airbnb and VRBO comps, and my own yearly Airbnb/VRBO numbers on them.

Most conventional lenders will not touch STRs at this point, because like our jobs, they don't get it. I set up a LLC to work with this lender because I am planning to purchase more down the road, and it is easier than a second mortgage. I would recommend calling/emailing/dropping in on a small, local bank that does commercial lending in the area you are looking to buy, and convince them of the merits. Might be easier than you think!

p.s. If you know if anyone looking for an AD, let me know!! 😃

@Brandon Richardson Another option would be a virtual PM company, like Guesty, or similar. They charge a much smaller percentage and have a 24/7 line set up for emergencies, guest issues, and whatnot. I think you still have to give them names of cleaners, handymen, etc you want to work with, but they can also find you a crew. Could be worth looking into to save at least a few grand.

One of the best uses of Craigslist I've heard cane from @John Underwood. He said he lists on CL but then links his VRBO as. I've done that and received a few inquiries, but I don't keep up with it the way @Paul Sandhu does.

I think a website is a great idea; just finding time to build and promote it while running the rentals and other things is getting in my way.

@Brandon Richardson, I have been using my house as a VR on Airbnb and VRBO for about 5 years now, and I've managed it from all over the world, working my other job. If you want to cut out the PM fee, I'd suggest going down there and didn'ddi a few days interviewing cleaners, researching handymen, networking with other be owners who can their these types of contacts your way. Even hiring a cleaning company and paying a fee which you pass on the renter is better than someone charging you to come out and replace a lightbulb.

We've used Care.com, Thumbtack, etc. to great advantage over the years. Smart lock (or lockboxes), smart thermostat, a locked storage room full of cleaning supplies and extra linens, and you'd be amazed at how your margins will increase, if that's what you want to do.

Best of luck!

I would suggest JJ Wade Insurance broker in Wilmington. They can handle renters policies and deal with properties all over the SE coast. You may have trouble depending on where your property is in Topsail, however, since everything is about to fall into the ocean and you can't rebuild in certain areas.

I haven't created one yet, but I recently listened to Vacation Rental Success podcast interview with Alan Egan, who is working on building a VR community of owners. He is offering free templates and video walkthrus for creating a VR WordPress site. You may have the skills already, but worth looking into. I'm going to use it when I close on my current contract. His site is http://rentmoreweeks.com/2016/10/13/does-your-vacation-rental-website-look-this-good/

Hi, all. I began working with a commercial lender when I was offered on a 6-plex unit in my neighborhood, which was 80% rented. I was going to convert the open unit to short term and then 2 others as leases expired. Someone else made a better offer - I lost the property. I am still looking to purchase another property - possibly two - but I'm starting to think I would be better off with a conventional lender, even at the same bank. I won't have any problems qualifying, and the rate should be at least 1 point lower than the commercial loan, plus 30 years as opposed to 20.

I've already set up an LLC and offered on another single unit property, but under my name. I know I don't have to use the LLC, but is there any benefit for continuing with the commercial loan, or should I switch to a conventional, residential loan?

Thanks in advance for your advice.

Police officer left his service pistol and called me in a panic when he was half an hour away, asking me to tell the cleaner not to touch it and that he was coming back.

I have two units in the same building on Airbnb. On AirDNA, one's annual revenue is shown accurately, but the other, larger property's annual revenue is shown as a sum of both units. I have emailed AirDNA about this and they basically said that's not how the site works. I said, I know how much I make. That being said, if you can identify single-property owners in your map area, it seems to provide a fairly decent picture of what they are earning. I think occupancy rates are way off, however, because they do not account for personal time you block off for yourself or others as opposed to actual rental dates.

I've had no experience with them, but it seems most of these types of virtual PM companies, from what I've heard and read, are just a means for you to be hands off. All the things they offer are services you can do yourself; email the cleaners, message the guests (which requires you give them your Airbnb login info), contact service providers if there's an issue, but not from a network of providers, just Google apparently. There is no hands on service, obviously, but you still have to find the cleaner, get it set up, and then turn it over to them. I think you could do the same with a co-host.