All Forum Posts by: Timothy Hogan

Thanks @Monica Der, I've got the question into my CPA as well. 

Hi all!

Tax and property related question:

I have my primary residence listed on a site called Peerspace, which is basically like Airbnb for photo and video shoots.

I'd like to start promoting this more, as it is another way to optimize rental revenue. 

My question is - how can I write off improvements to the property (landscaping, renovations etc) as they tie into the "product" and related rental revenues? Can I invest in the property though my existing photography business and write off? 

Any guidance would be appreciated!

Also, if Peerspace is active in your area, I highly suggest putting up any properties you have. Commercial shoots can and will pay thousands daily for beautiful spaces. 

Tim

Thanks @Shelby Pracht!

No Kidding! That's so cool @V.G Jason. Hope you enjoyed it! Let's definitely stay in touch.

@Michael Baum - you hit the nail on the head. Avid snowboarder, backcountry addict and mountain biker. While this is primarily an investment, I plan on making the use of the space as well and spending more time in the Sierras. I'm fine with it breaking even for the first couple years, and bringing in some cashflow in the future. 

Thanks for the reply @Michael Baum. 

Mammoth is a year-round destination, which is a plus. Summer is mountain biking, hiking, golf, yosemite etc etc. Lake mary is a 5 minute drive. Plus this year we'll likely be skiing into August!

Slow seasons are spring and fall. 

At average nightly rate, ($234), 70% occupancy is break even at the current mortgage rate. Definitely don't think I can hit 85% (yet). ;-) The game of course changes when I can refi (2 years?). 

You're absolutely right though.. I don't think it's a home run.

Hi all-

Crunching numbers on a STR Mammoth Lakes, CA. Posting a similar thread to the Gatlinburg thread by @Amit Sharma.

Backstory:

This would be my second door, but first in the Mammoth market. 
I currently run a 1br in Ojai, CA with nearly 300+ 5* reviews and 2022 gross of $76k.
I have systems in place and have a good handle on remotely managing an str. 
Mammoth is a hot market (despite, or maybe because of all the snow... lol). Lots of competition. 

About the unit:

1br plus loft, will sleep 6.
Needs some updating, but that is one of my specialties. 
Appraisal came in at $522k - UNDER accepted offer, which is an entirely other thread.

Competitive analysis for 2br units in my adjacent area. Removed the ones with zero rentals etc:

Avg nightly rate: $235
Avg occupancy: 54%
Avg gross rev: $47k
Top performers are upwards of 85% occupancy and $86k gross - and I've stayed in the top grossing unit. It was nothing special. 

STR analysis from Avery Carl attached. 60k ($13k higher than average) seems to be my break even with the current interest rate. Note - cleaning fees in the calculator max out at $300 total monthly, so I'd expect an additional cost here. (I believe it's a bug in the calculator @Avery Carl.)

Q: Assuming seller will agree to reduce price to appraisal value , am I crazy to think I can beat the averages on occupancy?
Q: Historically, does anyone have data for inventory in ski towns? Better to buy in summer or winter? I've heard anecdotal evidence that suggests inventory is higher in summer, however interest rates will likely be higher then too!

Any input would be appreciated!

@Account Closed - how did it go with the purchase? I'm interested in getting into this space. Any insight you have would be welcome! 

Hi @Ryan Moyer - I should have been more clear. It was a reference to hospitable.com and their previous branding smartbnb, where the listing appeared more active and favorable because of price updates. 

However, hospitable.com also has said their updates do not influence rankings, which brings my question more directly:

Airbnb clearly wants hosts to use Smart Pricing - and I do not see a meaningful difference in the results of SmartPricing vs Pricelabs. 

So the question is whether the minimal differences in the pricelabs algorithm are effective other than pushing to VRBO and Booking.com, and worth potential negative algorithmic effects on Airbnb. 

Tim

May have answered my own question. From Hospitable.com support (who are super helpful)

"Those promotions will never display on Hospitable.com or PriceLabs. You won't be able to see them there. We will only ever show the price that PriceLabs sent us.Then when we send that to Airbnb, we will still only send the price from PriceLabs. So let's say you have an orphan night and you have a promotion on Airbnb for those (let's say a 15% discount). If PriceLabs sent us $200 for that night, we will send that to Airbnb. Then, when a guest goes to book that date, they should see $170. The same applies if you have promotions set up on Booking.com."

Tim

HI all!

I run a 1br STR in beautiful Ojai, California. We're consistently 85%+ occupancy and #1 ranked for 1person and 2person stays. I'm also listed on VRBO and booking.com, but not getting much action from either, but that is another story. https://airbnb.com/h/themeinersdaughter

I've recently begun experimenting with hosting platforms (hospitable), ranking (rankbreeze), and pricing (pricelabs).

So far I'm not seeing much advantage to Pricelabs vs smartpricing, other than pushing pricing to VRBO and booking.com. 

My questions:

1) Is it a proven fact that pushing pricing changes to airbnb via hospitable positively affects rankings? It seems like airbnb would prioritize its own pricing engine?

2) With pricelabs/hospitable, I believe I lose the ability to use the Airbnb promotions feature, which I've used successfully in the past to promote and book the gaps in my calendar. Has anyone A/B tested this? Seems like running a promotion on Airbnb, with their associated badges and notifications, would be more effective. 

Potential combo - use pricelabs / hospitable for intelligent pricing on vrbo / booking.com, and turn on smart pricing and use promotions on Airbnb (thereby breaking the pricing connection with hospitable) 

Open to any feedback or insights!

Many thanks. 
-Tim