All Forum Posts by: Matt Smith

Thanks Christian.  We are always doing work when down there, or updating, cleaning, adding value, decorations, furniture, etc.  

I'd say we spent ~40 days there last year, and worked at least 35 of the 40 days.  The first part was after closing, we went down there to get it prepped to list on AirBNB/VRBO so we were doing stuff each day.

As far as rental nights, we rented about 100 nights last year (no discounts anywhere) and weren't even listed on STR platforms until May. And it's a beach property so obviously it was heavy bookings over the summer, solid in the fall and very little in the winter.

My fiance and I bought our first STR last year and rented on AirBNB/VRBO throughout the year. We are both W2 employees so we should be pretty simple.

We bought the STR as a vacation home and do go sometimes ourselves (usually non-peak season) but it is available for rent all year.

We also have one LTR with a signed lease.

Want to work with a tax pro who knows STR's/LTRs and how to best do depreciation. Want to know if a cost-seg would work for the STR.

Bonus if you are in Atlanta, but not necessary.

I don't see why you wouldn't put TVs in the house.  They are cheap and guests expect them.  Just don't turn them on when you are using the house personally.  There is literally zero downside to adding TVs.  There is lots of potential downside if you don't.

 I also like the idea of a booster as a low cost option.  Had never heard of that before.  

Good point.  Ours is a 40 so we can roll the dice on it, i do agree especially in summertime FL the water just can't get that cold.  

If it turns out to be a problem I will certainly look at tankless

Do you all typically see larger properties adding a 2nd water heater or a tankless for STRs?  I'm just thinking with potentially 6-10 ppl staying there that they are going to run out of hot water pretty quickly when everyone is getting ready for dinner.  This one is in Florida so we have the benefit of warmer weather but I just can't see one 40gallon water heater being enough and am worried about getting a bad review because of this.  

Is it worth it to add a 2nd water heater before listing on AirBNB?  The existing one is a 40gal and only a few years old so it's not really time to replace it.  

Thanks Andrew! Since many of the homeowners quotes are giving us a huge discount for the wind mitigation inspection we have, would it make sense to get a homeowners to specifically cover Wind/Flood damage, and a separate STR policy to only cover fires and other general tenant damage? Is that even possible to do 2 separate policies like that and roll into escrow?

For Wind/Flood, it doesn't really matter that it's an STR right since those are natural disasters and not tenant related?

We are under contract for a 630K Single Family Home in Port St. Joe, FL and are looking at insurance options. Property is not directly on the beach, it is about 5 houses back from the beach. So about a 300-400 ft walk to the sand. Proper insurance is currently at 13K/year without Flood insurance. This will severely impact the property analysis and cashflow that we projected. Does this seem the norm for an SFH with 400K on dwelling? We also have a wind mit and 4 point inspection done but proper is giving no discounts for that. The house is also built on top of 12 foot pilings to protect from flood, as well as it survived hurricane Michael (albeit there was some damage but it was mostly all in tact).

We do have a separate private flood insurance quote for about $600/year so we will probably do that.  

We had another quote with some other brokers that are giving discounts for the wind mit/4 point and have quoted landlord policies or homeowners policies (~4-6K annually) but I'm worried we may not be covered for STR on those, even though we have been VERY UPFRONT with insurance carriers that we will be STR'ing the property when we aren't using it personally. We plan to use the property 1-2 months and STR the rest of the time.

Does this seem normal for a florida gulf SFH that's 5 houses back from the beach? Just seems outrageously expensive to me on a 400K dwelling.

Great advice on the podcasts.  I will definitely check those out.  That is great, you are a little bit ahead of me so I'm hoping to at least be in your position this time next year.  Connection sent.   

I agree.  Learning how to properly analyze deals is key #1.  Once I find a property where the math is good than it's obviously a no brainer.  Then do that x1000.

I was also curious about LLC vs umbrella policy. Is it difficult to manage/setup a new LLC each time you gain a new property? And, I would think tax season would be more difficult since there are so many, not easier. But I will admit I'm a little green here. I've found lots of mixed opinions/reviews as LLC rules and fees are different in every state. I obviously need GA specific. However, I do see the advantages as it would be nearly impossible for anyone to sue you.