All Forum Posts by: Tom Tao

Quote from @Michael Baum:

Hey @Tom Tao, so Ashford is somewhere I am kinda familiar with.

I have met a few folks doing STRs out that way and they are doing pretty well. It is seasonal and there isn't a ton. Greenwater has a few as well which is on the road toward Ashford.

I would be a bit concerned about appreciation. It is hard to say of course, but I think things have topped out a bit in our area.

You might also want to check out Mossyrock and Riffe lakes. Packwood is also getting popular.

Thanks Michael. Are things starting to saturate in the Ashford area? I noticed that for Packwood it seems like it is the case and people start to sell.

My concern about appreciation is if the investment return of STR cannot continue to go up, then the appreciation will stall as well

Hi BP friends,

I recently have been looking at STRs near National Parks, and I wonder whether it is a pure cashflow play, or a combination of cashflow + appreciation play?

Specifically, a location I am looking at is Ashford WA, near Mt Rainer National Park. Seems like it is a market which is only for STR, and resale is also mostly dependent on that.

However, the appreciation for the last 10 years has been significant. Wonder what is triggering it, and whether it is sustainable if it is mainly driven by STR investors and things start to saturate.

Thx. Thoughts are appreciated.

This is a great post.

I was also looking at Packwood WA for STR investments and noticed that the occupancy rate has been low. Wonder whether people have seen similar trends.

I also wonder how people feel about Ashford WA, vs Packwood, WA. Why pick one over the other?

Also wonder how appreciation plays out in that area as well. Seems like the exit plan is to sell to people who are also doing STR? Does it affect apprecation?

Quote from @Jay Thomas:

If you choose to have the on-site manager as an employee of your LLC, you gain direct control over their performance and alignment of interests, but you'll also shoulder management responsibilities and navigate legal and HR issues. On the other hand, employing the on-site manager through a property management company reduces your administrative burdens and leverages their expertise, yet it may entail less control and additional fees. Ultimately, the best approach depends on factors like the size and complexity of your operation, your comfort level with HR tasks, and the services offered by the property management company. It's wise to thoroughly discuss your options with the property management company, consider your needs, and ensure clarity on contracts, insurance coverage, and benefits arrangements before making a decision.

 Thanks Jay. Are there tax implications or liability differences?

basically i want to make sure it is as easy as possible as I haven't dealt with payroll before, and the onsite manager was employed by the previous PM

Quote from @Michael Smythe:

@Tom Tao who hired the onsite manager?

If you did, why would the PMC want to be responsible for their employment, possible unemployment claims, etc.?

If they hired the person, they should have no problem employing them.

It's really all negotiable.

 The previous PM hired the onsite manager, and it was an employee of the previous PM.

Now i plan to switch the PM and want to retain the onsite manager. 

I recently ran into this question with my remote multi-family property so want to see whether people have any thoughts or what should be normal practice.

I hired a local 3rd party property management company to help me monitor operations, manage payrolls, and handle issues for my remote multi-family property. We also have an onsite manager who is handling the day-to-day business. 

The 3rd party property management company wants this onsite manager to be the employee of my LLC, which I am not sure with. I have heard that onsite staff could also be the employee of the 3rd party property management company, but just wonder what is the normal practice?

Some related questions about who handles contract, insurance, benefits, etc so want to hear people's thoughts. Thanks

Quote from @Nate Meeker:

@Tom Tao I would look at what type of experience you could do on the 10 acres. Go karts, paint balling, weddings, micro greens, tiny homes, etc. I have clients in Anza seller financing a ex wedding venue/horse property that did $500k/year gross. Just depends on what you can do with the zoning.

Thanks. Yea this is what i was thinking.

If none of the options are considered as beach house, then if we can pack in more amenities and do extra things like events will probably make a big difference.

I am not exactly sure how much difference it is for 2 acres vs 5 acres (usable) though. i could imagine with 2 acres i can still do weddings, tiny homes, etc? or in order to do events there is a minimal lot size which should strike for?

Thanks for the answers.

feel to me that most people feel the distance to the beach is important. I understand why it is crucial for smaller 3B/2B properties, but I wonder how important it is for properties that are above 5000SF with 6B/6B?

One argument could be made that the house itself is the attraction rather than the beach, and if the targeted travelers are the ones who will spend most of the time in the house and maybe go to beach once over the stay, 10 mile vs 25 mile doesn't change the story. Moreover, option 2 will offer more privacy given the distance to the neighbor, etc.

Want to add that option 1 is in a very good neighborhood while option 2 is on the hills without many buildings / facilitates around 

Hello BP friends,

Recently I have been evaluating two short-term rental property options, and am struggling to decide which one is better. Both of them have 6B/6B and could host ~20 people.

Option 1:

* Less than 10 mile to beach

* 2 acre total which is buildable

* More mild temperature, 15C - 25C year around

Option 2:

* Inline, 25 mile to beach, hilltop mountain view

* 10 acre total, with 4-5 acre buildable

* Hotter, during summer it gets to 35C

House condition of the two is similar. I am a bit struggled on which one is a better option. A couple of thoughts questions:

(1) Is closer to beach a major draw for groups like 15 - 20 people? or given the group size, it doesn't matter much as they will likely stay at the property anyway

(2) I heard from people mentioning that higher temperature like 35C will be more appealing given it is better for the pool usage. Is that the case?

(3) How big of a difference for privacy for property of 2 acre size vs 10 acre？

Thanks!