All Forum Posts by: Tiffany Shan

I met a pair of friends this week who had an interesting arrangement that worked for them, and I'm curious if anyone else has contemplated this or come across it. 

Friend A was older, wealthier, and wanted a vacation home largely for personal use. 

Friend B was shopping in the same area, and although they wanted to very occasionally use their property, were really excited by potential short-term rental yields. 

They bought a single home together, owned as TIC 60/40, and got the following benefits:

-A was not going to use the home so often as to require 100% of a home

-B&A together have more resources than B alone, so he can get a way nicer home, more amenities, better location, way higher rental revenue

-B has hired cleaner/quasi property manager who keeps the property probably nicer than A actually would on their own 

-B gets to diversify and put the rest of the money he would have allocated to this purchase to a diff home or neighborhood

Obviously the agreement is actually fairly complicated and I assume quite rare (I have a particular interest in group purchases, and I only met them because I went looking), but they seemed really happy with it. It seems like this is a potentially advantageous way to find a capital partner that's only possible because of the kind of unique nature of vacation rentals.

How do you think Airdna accuracy compares to other providers (the only 2 I know are Everbooked and Mashvisor)? Are there any other good data sources you'd recommend someone check out? 

Hi Michael! I'd love that contact info as well.

Wanted to echo the AirDNA recommendation - they also periodically put out great blog posts/research, including this recent one that very explicitly answers your question. 

http://blog.airdna.co/buy-vacation-home-properties-2017/ 

Has anyone tried MyVr.com? Not associated at all, just know someone who is using and likes it.

Ha, corkscrew/bottle opener is a great answer. It' s on the Kit list but extra chargers are always appreciated.

"Nothing quite in this area" is probably a bad sign - I know it may seem like a lack of other short-term rentals means a lack of competition, but it may also mean a lack of demand. I don't know your area *super* well but my impression is that there aren't major tourist destinations that will attract a huge stream of visitors. In a smaller city without major tourist destinations, I think 50% is probably too high. 

AirDNA and Everbooked have pretty good occupancy data (you're limited in what you can get for free though). If your town is too small to be covered by them, I'd just check occupancy rates for other AirBnB's (see what dates are blocked out, obviously this is imperfect and you'll only really be able to see July/Aug). 

Congrats on the early success! 

Do you think you have the network/track record to raise capital and purchase 2-4 unit buildings? If not, I think the question becomes, does Option 3 or Option 1 set you up better to build a track record and transition? I'm guessing #3 as it seems more conducive to building a relationship with someone who a. had the capital to at least purchase 1 unit and b. is now going to be pleased with your STR management performance and in a good place to back you or recommend you.

At least in my neck of the woods there's loads of interest in STR investing!

That definitely does! Thanks so much :)

You increasingly see lenders making loans *TO* LLCs. I don't see a lot of instances where someone gets a personal loan backed by shares in an LLC that owns a house! I'd be super curious if anyone has heard of this.

Hi-

Seeking to give out loans to property owners who hold the property in an LLC (multi-member, if that's relevant at all). For anyone's who's done this...

-Does it make a difference if the loan is made out to the LLC versus to the individual? Is the former simpler to set up from a regulatory perspective?

-If the loan is secured by shares in the LLC that owns the house... does that count as a personal loan or a mortgage?