All Forum Posts by: Rohin Dhar

When we first got started, I only looked at deals that had been on the market for more than 30 days that no one else wanted. The idea was the start from that pool and then only make offers on ones where we saw potential that no one else did. The way to make money investing in real estate is to take on a problem that you're willing to solve in exchange for a good price. If there are no problems, you should expect the price to reflect that!

If you're considering Oahu, that basically means condos in Waikiki. Last time I looked (pre pandemic) i was alarmed that the nightly rates were absurdly low on many of them (less than $100 a night). So just really be confident in your numbers before you pull the trigger.

We ended up going with a cottage in Kauai which has higher nightly pricing.

Being in a location where you have a pool and your competitors do not will be incredibly lucrative for you. I'd also suggest getting a pool heater for the colder season. 

We allow guests to opt to have the pool set to 90 degrees during their stay in the winter and charge them $50 a day to cover the energy expense. This is in California so the winter is pretty mild, but still the water would be very cold otherwise. We have a pool cover though which keeps the pool from losing too much of its heat overnight.

Just check with the three major players for a quote: Proper Insurance, Foremost, CBIZ (not sure CBIZ is still doing short term stuff though) and you'll know for sure. Also a local insurance agent can help. You can also get a standard homeowners insurance policy and then an additional STR policy on top of that.

Most of our places the STR homeowners insurance is about $100 a month, nothing crazy.

If they are available in your area and fit your space, I'd also highly recommend Speed Queen washer and dryers. They are commercial quality and work incredibly well. We have them in one of our homes that goes through a lot of towels and sheets.

That said, I was recently shopping for a stacked washer and dyer and Speed Queen was more than 2x the price of the GE one and has a 2-3 month wait at the moment.

We have a property in Sonoma, CA (technically in the incorporated part of the country, though 1.5 miles from the town square) that we bought in 2014. We have a short term rental permit, though they no longer give them out in that particular spot. Still possible to find in certain spots in wine country, though challenging (plus getting homeowners insurance is hard b/c of the fire risk in rural areas). Overall our place has performed well, but we got in at a good price. 

Guerneville pricing has blown up during covid b/c the properties have a lower price, but i'm not sure how well they'll rent out in the offseason post covid.

I'd echo @Justin Anderson that I sort of like our smaller properties better than our larger one. With a one bedroom you're typically renting to a couple so there is less risk of bad things happening like an unauthorized party that disturbs neighbors. In general, the guests tend to be happier and the maintenance needs are a lot less. Plus if you can pick up the right deal like justin's one bedrooms, your cash on cash %  returns can be absolutely insane!

That said, larger homes probably appreciate better and generate more absolute profit. But they come with more mental cost as you manage them! We're not in the smokies but I think the "small versus large" decision is something to think about for every market. 

@Suraj Guptha yep, a good STR can generate both appreciation and cashflow, but it's not easy to find. 95% of the ones I look at won't cashflow, or short term rentals are prohibited in the area so it's a non-starter. So just takes some time to find a good one! This is definitely the case out West where I've invested so far. It seems like it might be easier in some of the markets in the South, but i'm less familiar with those areas.

I have similar goals of creating unique properties, it makes it much easier to stand out.

However, as I look back at our small portfolio, a lot of the unexpected gains have been through price appreciation.  Price appreciation is likely to be much stronger for things that are "real estate" (ie real homes that are properly titled) versus "personal property" (ie something like a treehouse or barn). 

So you might make more on the STR market with a treehouse or yurt, but your generic 3 bedroom in a good market might be what creates long term wealth!

We have an STR in Taos and it cashflows extremely well. I think the first year cash-on-cash return might exceed 65%. It is however, very architecturally unique so gets a lot of bookings just because people want to stay there. Your mileage may vary with a more generic property. This is the place:

https://www.airbnb.com/rooms/4...

This is to say, there might be opportunities in New Mexico, but it's not guaranteed. It might require finding a diamond in the rough, or it might be smooth sailing, or it might be impossible. You can figure it out through research and underwriting though. In general people really like coming to the Taos area and it's the last relatively affordable ski area in the Rockies.