All Forum Posts by: Trevor Schmitt

@Alex Scattareggia @John Underwood @Lauren Kormylo @Michael Baum @Andrew Steffens

Thanks for all of the input!

The reason for the low rates currently is because I have been cleaning all 4 of the units for the past 1.5 years 😅 My highest ranked category and most complimented item is the cleanliness of all of my units. 

I am now a new dad to a 6-month-old baby boy (it's the best thing ever), and recently took on more responsibility at work. With that being said I am in the process of delegating the cleaning to actual cleaners! I have done so for two of the units so far but am going to be doing it to the others very soon as well. 

My goal is to simply raise the rate to that of which the cleaners will charge me, but obviously I do not want to affect my occupancy rate while doing so. I understand that I can make adjustments to the nightly price (I use pricelabs for this) to combat this.

Was just curious as to what all of your thoughts were! 

After seeing the responses, I am much more comfortable with raising my cleaning fees and gaining back my time!

Thanks everyone! 

The agent is essentially doing their due diligence. 

A couple things:

1) You are obviously not obligated to sign the contract, and if you do, you are not ultimately locked in or obligated to eventually purchase a home with them as your agent. If they are not doing their job and not representing you properly, you can cancel that contract. There will most likely be verbiage that prevents you from canceling the contract and immediately purchasing a home the agent showed you, etc.

2) A top producing agent will assuredly give most of their time and energy to those that they have under contract. If you choose to not commit to this agent, or any agent, you may not get exactly what you are hoping for from said agent. 

3) I would be more worried about an agent not going through the representation contract with you, as it may be a sign that they do not do a lot of business. 

If you are comfortable with the agent and have trust in them, there is no reason to not sign the representation agreement! If you are hesitant on their ability and/or do not fully trust what they are saying, keep interviewing agents! 

Hello BP crew!

I am seeking opinions and advice from those who have some experience/knowledge with strategies around the cleaning fees charged for your STR.

Currently, I have 4 STR listings on AirBnb... my occupancy is great, and my current cleaning fee is quite a bit below market average from what I can tell. For a 3 bed / 3 bath townhome I am only charging $50, and for a couple 2 bed / 1 bath units I am only charging $35.

Questions:

1) Will increasing my cleaning fees have an effect on my occupancy rate? For example, let's say I were to double the fees, which would put me around market average. 

2) Do you have a pricing strategy for your cleaning fees? 

3) Is having cleaning fees below market value truly making my listing stand out? 

Thanks for your time and consideration on this, much appreciated! 

Hey Roy!

What is the reason for your desire to move on from SFH and into the multifamily space? Furthermore, what strategy are you hoping to implement with your next property?

If your situation affords you the ability, performing a house hack is great opportunity in a 2–4-unit property. It is a literal cheat code IMO. If you are willing/able to live in one of the units for a year, you can get into the multifamily property for only 3.5%. 

Another great advantage with that is most lenders will allow you to use 75% of the current income towards your preapproval. This can allow you to get a higher value property, with less money down. 

There are certainly risks with doing this, as with everything else. But if done correctly, can really catapult you to the next level. 

Hi Joseph! 

I became a real estate agent 7 years ago with the goal of learning more about real estate investing, the properties themselves, and the transaction. It was great, I learned so much from helping people buy and sell. 

For your situation, I do not believe it would be the best use of your time and money to obtain your license just to have it if you are not planning on representing buyers and sellers. IMO, that is really the only way you would learn more from being a licensed agent. 

There sooo many resources to learn what you need to learn on virtually any method of real estate investing. 

I would save the time and money! Put that time and money into true education for yourself! I believe you will find much better success that way. 

Furthermore, studying for the real estate exam is rather time consuming... and unfortunately, 99% of the material would never apply to your investing journey. After that you have fees and dues that need to be paid consistently. The only value you have is to have access to the MLS. You can get the info you need through the MLS by developing a relationship with an agent in the desired area.

What's up BP community!?

Over the last 7 years of my real estate career, the amount of educational value that BP has provided to me is astounding. I have recommended this community and its various platforms over and over again. The educational value is undeniable and very real. For that I am extremely grateful! 

I am curious... 

Does anyone have success stories of actually closing deals from a relationship formed through the BP forums? 

Hey Mike, Welcome! Glad to have you join this great community! 

Are you currently investing in real estate, or are you looking to get started?

What do you hope to gain from the BP community? 

Hey Carlos, I echo what @Jason Wray said. 

Also, important to note that by owner occupying a 2–4-unit property, you can take advantage of the 3.5% as Jason mentions. However, if you were to buy that same 2–4-unit property, without living in it, you would be required to bring a 20-25% down payment, as opposed to a 3.5% down payment! 

Hi Runa! I have dealt with flood insurance on many properties in our area.

Your first step should be to reach out to your insurance agent, and other insurance agents for that matter, in order to get an accurate quote for insurance. It may be $5,000, or it may be $2,000, or maybe it is $7,000. Either way it is very important to get exact quotes!

Also, depending on what flood zone it is in, and how much of the property/structure is in the flood zone, you may be able to obtain an elevation certificate. The elevation certificate can potentially remove the property from the flood zone, and therefore, allow you to not carry flood insurance. Those typically cost between $700 - $1,000 from my experience. 

Hope this helps, good luck! 

Hi Chris! 

What type of rentals are you planning on having? LTR or STR?

A lot of townhomes are in an HOA, which can come with challenges, i.e. not allowing rentals, or not allowing STR. Personally, I have two properties that are in an HOA... and they are the easiest things ever... I don't have to worry about exterior maintenance, lawn care, or snow removal... those are the huge advantages that I have noticed.

On the flip side, they usually will bring in less rent and the HOA can at times be rather costly. Also, sharing a wall can cause issues/complaints that just do not happen in a SFH.