All Forum Posts by: Sara Kasper

Thank you, everyone, for your responses! For clarity, the concern is, as John Carbone stated, where the income shifts from "rental income" to "fees" that are not charged to me but to the guest. I'm meeting with at 5:30 est today. Their current solution is to state that they will not lower the average daily rate below $200 without the owner's consent. This, I think, may still cause an issue because the occupancy rate could be effected. It's really starting to be sketchy to me that they won't outline exactly what fees they are going to charge and how much; I'm probably going to push for transparency before I make a decision. I'm really hoping we can get into an agreement. If anyone knows a company that will service Locust Grove, VA (Richmond was the closest option) Please let me know.

I'm in negotiations with a STR management company. The bit of their contract that has me concerned is that, per their contract, they can charge any fee at any amount and retain the money while also being in control of the rent pricing. I want them to have control of the rent pricing, so they can adjust it to make sense for the market and to optimize occupancy, but I'm concerned about the unlimited control over fees, which could be a conflict of interest. Example: If they upcharge the fees or base the fee as a % of the booking or an extra $100 per cleaning, it's revenue being collected in addition to agree upon 25% of revenue generated by the bookings. And/or if the overall price of the booking is no longer competitive because of the fees, they'll lower the rate instead of their profit on the fees. I'm fine if they need to upcharge a bit, but I'm concerned that they aren't sharing exactly what fees they are going to charge or how much, or if it is really at cost to them. They say they're just covering their costs with the fees they charge to customers, but they don't seem to want to share their pricing models or even a list of what fees they will charge. We've been trying to work on a solution, but the solutions they come up with keep the vagueness of the fees in place.

I can't tell what degree I need to be concerned about this, and would like your opinions as investors and business owners. 

I'll be there! So excited to meet all of you!

Got it! Thanks all! 

I have a house worth $500k with a mortgage I owe 285k with 4% interest. I don't have my next deal yet but know that I want to leverage the equity in the house to fund the next deal. Does it make sense to refinance now or when I have my next deal ready? If yes, should I aim for lower monthly payments, lower interest and longer life of the lone OR higher payments and shorter life of the loan which would give me more equity (I think). 

I do have that down! I think I have enough to put down on the next one; just need to secure the rest of it. Thanks everyone!

Thanks, Joe! 

How do I systematically keep buying investment properties without running out of capital?