All Forum Posts by: Sean Wilt

Ok, cool.  thanks all.  So, assume they just add the collected taxes to the fee they send me via the rental.  Makes it easy.  Understood, I need to understand exactly what they collect so I'm not caught by surprise.

So, if only AirBnb collects fees, do you increase the rental fee on other platforms by 5% or 8% etc. to #1 be sure you collect some tax relief from the renter, but #2, levelize the fees accross platforms for the customer searching multiple sites?

I'm in massive research mode for first STVR investment.  Feel I have a pretty good handle but surprises still come up!  I am looking at an area that has a   6% hotel tax and 7% sales tax.  I have been putting these numbers in my spreadsheets to estimate profit/cash flow.  Obviously at 13%, it takes a chunk for sure but the properties I am looking at still look good.

Well.... learning today in a few places that AirBnb charges the renter the occupancy tax? How do they determine how much?  Assume it is not in the advertised price (like a Hotel), just tacked on in the final fee? 

#1 is that correct?

#2 Does AirBnb pay it directly to the jurisdiction the property is in or to they remit back to me?

#3 I heard AirBnb is the only one that does this (not the others like Bookings.com, VRBO/Home Away.  Is that true? If so, that's fine, assume you just have to account for it on your own if the property rents via those platforms.

Thanks!

Charles,

My budget goes to $600k max so I did not see the $1M property you mentioned.   I have not looked at Hilton Head.  I live in TX and one of the driving reasons for picking Savannah is my daughter is going to SCAD in the fall so she will be my local presence.  Hilton Head too far away.  I just did an exhaustive search in 31401 Savannah (downtown), and in my price range there are only 4 options that are in non-capped zones and therefore prospects.  I am interested in them but still looking to get into the county to get the more executive style/family renter which I think will be more profitable in the long run.

I purchased AirDNA analysis tool for Tybee Island and yes, it is seasonal, but surprisingly, it wasn't TOO bad even in the dead of winter.  February - September it's projected to be 70% or more occupied at top dollar.

Mike,

Thanks for the reply.  Yes, it does help.  Since this is a slower area for STVR (though I think it will be a great place to be!), there is not much information at all out there.  I tried to reach out to one of the more active AirBnb listings to see if he would help but not surprisingly, he didn't respond. 

I think I'm ok with the county, but its the HOA I'm worried about. I just don't know how much power other than being a pain in the butt, they have.

Finding taxation of STVRs is very difficult on any website I have found.  I did speak with someone and she seemed an authority but really didn't know about STVRs.  She indicated you need a business tax certificate which is fine, but she said that tax is only due on 30 days or MORE rentals, not LESS which seems incorrect to me. She also said they only have 2 business tax certificates on file in the County for vacation rentals.  on AirDNA, there are well over 100 properties spread out through the county that are listed on AirBnb.

Anyone familiar with Chatham County GA?  (not Savannah city or Tybee Island)

I'm looking to purchase a STVR property in Savannah.  Downtown is pretty tough to find anything as there are caps and most are filled up. The very few that would be available are EXPENSIVE and would be tough to make work.  I looked at Tybee Island as well and while regulation is not a problem, properties are quite expensive as well.

My thought is to purchase a large residential home on Whitmarsh or Wilmington Island which is half way between downtown and the beach. I think it makes a ton of sense and I have run the numbers many times and it works. My worry is there doesn't seem to be any regulation which scares me. Also, a couple fo the nicer subdivisions which cater to families, have an HOA. I got the covenants from a realtor and while there is no specific mention of STVRs, there is a general "nuisance" clause which could be interpreted broadly if there was a problem.

Anyone familiar with this area or otherwise dealt with HOAs in nicer/luxury neighborhoods in other markets?

yes, S-e-a-n is definitely the way to go!  Thanks for the reply.  Ok, that sounds great and we would definitely cover that requirement as we would plan to utilize the property personally likely around 4-6 weeks/year.  so that's great!

Next question for you or anyone else reading this thread... I set up an LLC for our start up business as was advised in various research I have done. Would it hurt me if I purchase the property through the LLC??? or would I just purchase it personally and then move it into the LLC after the closing?

Hey y'all.... looking to purchase a condo property for short term rental in a resort town.  I'm thinking the purchase price would be around $400k and will finance via a 30 year mortgage.  Since this would't be a jumbo loan, what type of down payment would I need?  I'm hoping we could get away with 10%?  Is this unrealistic?

Also, what type of interest rate should I expect.  We good credit and so that shouldn't be a problem.  Question is for a "second home" or "investment", what should I expect approximately?  I'm thinking 6-7% and that is what I am plugging into my analysis spreadsheets.  Am I off here?

Thanks! 

Sean

Thanks for the EMD tip. Figured earnest money makes it stronger but yeah, with high volume of offers, that could get difficult.

In a cherry pick situation though I would think EMD could show seriousness of the offer which could set my offer apart?

Thanks for the help!

I've bought a number of houses over time for my personal use so am familiar with how the transactions work in general. Also, my wife has her MLS license so we have access to MLS, State forms, etc.

My question is, I've heard on here from many that making a couple of dozen (or more) offers/month is a viable strategy with the hopes of getting 0-1 deals accepted.  Correct me if I'm wrong but don't you need to pay an application fee with the offer document of say $50 or so?  If this the case, wouldn't the fees be quite large over a month/quarter period if dozens of offers are going out?  This fee is non-refundable too so is just a flat cost of doing business that can get high.

Also, what about earnest money pending inspection, etc?  How much money would you put out on a SFD in the $250k - $300k range?  Again, with all of the offers being made in a month - that can be a lot of cash required to be tied up until you know you have a deal!

Am I missing something here?

Thanks!!!!

Sean