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All Forum Posts by: Tyler Work

Tyler Work has started 3 posts and replied 169 times.

Post: More Bedrooms or 2 Suites to Maximize STR Income?

Tyler WorkPosted
  • Rental Property Investor
  • Denver, CO
  • Posts 179
  • Votes 208

Agree with @John Underwood but it also "depends".  Of my 20 property portfolio my top performing property was a 2 BR house that slept 4 guests.  It performed better than a 5 BR 3 BA monster house that was very nice but not unique.  The top performer had much more attention to design, detail, and uniqueness and people were willing to pay for that.  Just something to think about as you're doing your renovation.  My market was Denver so it also depends on that as well.  

Post: Lender for Short term rental

Tyler WorkPosted
  • Rental Property Investor
  • Denver, CO
  • Posts 179
  • Votes 208

Hi @Andresa Guidelli if this is a brand new property that has no STR rental history it might be tough finding a lender out there who will take projected income. As a work around, you could rent your property out to someone for above market under the assumption you or they will operate a STR out of it for a year or however long the bank needed to see the lease was for. I did this myself once and it worked out nicely, you'll just have to make sure you're staying within STR regulations in your city and also not breaking any laws or rules.

Post: AIRbnb For Multifamily

Tyler WorkPosted
  • Rental Property Investor
  • Denver, CO
  • Posts 179
  • Votes 208

@Jake Cohen I was doing the same thing (using beyond for VRBO) with Homeaway and it wasn't ideal but it worked. Pricelabs actually integrates with Tokeet which pushes rates out to all platforms (except of course Homeaway). I never got enough traffic on homeaway for it to really matter and I actually only host on Airbnb now after 2 years. Up in the mountains you probably see a better ROI for hosting on multiple platforms so I could see it being worth it. I would be curious what you end up going with.

My girlfriend and I each own a rental in Denver and we're looking for our third as we speak with an ADU. Super tough to find but we see one or two pop up a month. Eventual goal is to buy properties in the mountains but I know Denver's market so we figured we'd start here first.

Post: Using livin in home as VR when on vacation

Tyler WorkPosted
  • Rental Property Investor
  • Denver, CO
  • Posts 179
  • Votes 208

@Ashley Lewis if you only rent your house out occasionally there is "on demand" insurance called Slice you could check out.  

Post: CPA vs DO IT YOURSELF

Tyler WorkPosted
  • Rental Property Investor
  • Denver, CO
  • Posts 179
  • Votes 208

@April White I don't do this myself out of laziness but I have friends that do their taxes themselves and take it to a CPA to check everything over.  It saves them a few hundred bucks come tax time and they learn the tax code and how to maximize profits when buying real estate.  Just an idea if you're up for it.  

Post: Short term rental marketplace?

Tyler WorkPosted
  • Rental Property Investor
  • Denver, CO
  • Posts 179
  • Votes 208

hey @Dave Kirby in vacation areas like Destin, FL, every property is a short term rental so just find a good realtor and tell them you want a property that will do well on the vacation rental market. These properties will be listed on the MLS. To my knowledge there is no MLS type listing service that only lists short term rental properties.

Post: AIRbnb For Multifamily

Tyler WorkPosted
  • Rental Property Investor
  • Denver, CO
  • Posts 179
  • Votes 208

@Jake Cohen if you're still looking into software I might be able to help.  I ran 20+ rentals with software (Tokeet) only to determine that the main reason you pay for a PMS is to "market" your rental on more than just Airbnb and VRBO.  I never got enough value out of BDC, TripAdvisor, rental website, etc to justify the headache of dealing with crappy software that didn't meet 100% of my needs.  Airbnb and VRBO have nice calendar integrations that work well, and now that Smartbnb integrates with VRBO you're covered on both fronts.  I guess my point is you might be able to operate your rentals just fine without a true PMS/Channel Manager. 

Post: Build an addition or keep money?

Tyler WorkPosted
  • Rental Property Investor
  • Denver, CO
  • Posts 179
  • Votes 208

@Will Foster I think it depends on a bunch of factors but usually entire home additions (new construction) aren't cheap. You might get a higher return on your investment with a rental rehab so you can start doing the BRRR but it really depends on which scenario yields the highest returns.

Post: First Airbnb Investment Slide Deck

Tyler WorkPosted
  • Rental Property Investor
  • Denver, CO
  • Posts 179
  • Votes 208

@Galen Crofut awesome deck, its clear you spent a lot of time on this.  I've been in your shoes before and have a few opinions you might find to be valuable.

-The occupancy rates displayed are usually off since some portion of the rentals are occupied by the owner some percentage of the year, some are only available a certain portion of the year, etc.  Sounds like you should talk to @Herman Hall or someone else has local knowledge. 

-Have you ever managed an Airbnb before?  If so put that in your slide deck.  If you've never done it before, as an investor I wouldn't give hundreds of thousands of dollars to someone who has never done this before.  Try to get real data from other properties in your area along with real expenses.  Go talk to other property owners or management companies and see if you can pick their brain.  

-Are you planning on managing the rentals indefinitely?  You don't have a number in there for management expense.  If so you'll be on the hook 24/7 to deal with guest issues and you won't really be able to scale unless you want to become a property manager.  Just might want to think about what you're signing up for.

-I've never actually raised money before but I've pitched to VCs and most people will not give you 20% equity for 0% cash.  Maybe show that you'll put a little bit of cash in even if its a small amount it will show them  you have skin in the game as well.  The way you have it set up from what it looks like your investor is taking all the financial risk.  You could even consider taking 30% of net revenue as a management fee with no equity but where the investor has to use you as a manager to limit your risk.  

Hope this helps! Feel free to shoot me a PM if you want to chat more. 

Post: Short term rentals New Orleans

Tyler WorkPosted
  • Rental Property Investor
  • Denver, CO
  • Posts 179
  • Votes 208

@Greg Jeanfreau if I may jump in here, when I used to do arbitrage my insurance broker advised me to make sure the owner of the property has a STR policy in addition to the renter. I looked into providing insurance for the property (dwelling & liability) for the owner and they advised me that since I didn't have "insurable interest" in the home I couldn't cover it. I required the owners I rented from to change their policy to a STR policy so I could sleep at night and they wouldn't be left with huge liability while I was covered. Some people suggest, such as Brian Page from BNB formula, that you can get a CBIZ policy for your rentals and thats good enough. He might be right but I was told that this was not true.

Obviously way harder to get owners to get on board if you make them change their insurance but its the route I took in Colorado.  

If you own the property its much easier with regards to insurance.  Feel free to PM me with more questions if you have them.