Rental property questions

[liv2ski]

I went on VRBO today and answered a few of their questions and was told I should be able to make about $48k before expenses. That is close enough to renting it out to a LTT for a year, but we likely get access to the home for 4-6 months (happy wife) and I do not need to move all my shit out.

Sure I will have to do some stuff to get it ready for short term tenants expecting a holiday experience, but I can handle that. Also, anyone dropping some serious money on a vacation home in my hood is likely not going to trash anything but the plumbing.

[PNWbrit]

I went on VRBO today and answered a few of their questions and was told I should be able to make about $48k before expenses. That is close enough to renting it out to a LTT for a year, but we likely get access to the home for 4-6 months (happy wife) and I do not need to move all my shit out.

Sure I will have to do some stuff to get it ready for short term tenants expecting a holiday experience, but I can handle that. Also, anyone dropping some serious money on a vacation home in my hood is likely not going to trash anything but the plumbing.

FYI To get them to give maximum push to your listing over local market you're going to have to not reject inquiries and accept automatic bookings. I don't like giving up that degree of control on who I rent to.

[Telemarketeer]

I went on VRBO today and answered a few of their questions and was told I should be able to make about $48k before expenses. That is close enough to renting it out to a LTT for a year, but we likely get access to the home for 4-6 months (happy wife) and I do not need to move all my shit out.

Sure I will have to do some stuff to get it ready for short term tenants expecting a holiday experience, but I can handle that. Also, anyone dropping some serious money on a vacation home in my hood is likely not going to trash anything but the plumbing.

Price is a pretty effective way to filter out the riff-raff.

[Whiteroom_Guardian]

Unbelievable what people are netting for AirBnB/VRBO here with still quite a bit of reserved time for the family/friends.

[liv2ski]

Unbelievable what people are netting for AirBnB/VRBO here with still quite a bit of reserved time for the family/friends.

Remember that these properties when purchased often had a break even or a small negative cash flow when purchased and it is after many years that the investment starts to pay out. Buying real estate should be viewed as a long term investment unless you have the money to luck into a market like 2011 & 2012 where the price is 40% to 50% off for a few years.

[XXX-er]

Town and cities are crafting by-laws to deal with problems short-term rentals have created, they might not allowed if the LL does not also live on the property ,a recent article said that in Toronto it could put 1/3rd of the Air BnB out of business

so that kind of thing could bite you in the ass sooner than later

[Danno]

Town and cities are crafting by-laws to deal with problems short-term rentals have created, they might not allowed if the LL does not also live on the property ,a recent article said that in Toronto it could put 1/3rd of the Air BnB out of business

so that kind of thing could bite you in the ass sooner than later

Yep.

[KQ]

Town and cities are crafting by-laws to deal with problems short-term rentals have created, they might not allowed if the LL does not also live on the property ,a recent article said that in Toronto it could put 1/3rd of the Air BnB out of business

so that kind of thing could bite you in the ass sooner than later

W2 (within the city limits) put a stop to non-owner occupied STR. Existing ones were allowed to stay if they applied for a business license within a certain time period (and strict inspection regulations along with annual fees were put in place) but as soon as the house sells that's it, no more STR.

[XXX-er]

" Are short term rentals allowed in Vancouver?

Starting April 19, short-term rentals, which are stays of less than 30 days, are legal in Vancouver. Short-term rentals are only allowed in a principal residence, where the operator resides for more than 180 days of the year and receives mail. A short-term rental must be licensed before it can be advertised or rented "

in Vangroovy the STR must also be the owner's principal res and they must also live in that res,

this ^^ kind of bylaw is just the canary in the coalmine for what will be or could happen to towns and citys with a lot of STR causing problems in which case you want to be ready and able to change

[liv2ski]

Ideally, my wife wants to be here 6 months out of the year, so that rule would work for me. I wonder how the government agency regulates how many days you rented it out? In my town you are suppose to do 28 day or longer rentals, but many of the VRBO / Air B&B listings I click on will rent to you for 2 weeks. So how are they enforcing this stuff?

[Bobby Stainless]

What makes short-term tenants easier than long-term tenants? The baseline physical maintenance should be the same or very similar, except now you have to go clean(or pay someone to) all the time. Dealing with a constant stream of new and unique strangers each with their own *personality* doesn't sound easy to me.

The cash-flow may be better, in some cases much better, just curious what part exactly would be easier.

I already have a cleaning and maintenance crew.

I rent a 2br/2ba townhouse for 1480 a month. I could rent this house for that a night.

Easy to get out of as well. Multi-family housing, not so much.

Just a diversified investment property from what I already do.

[cravenmorhead]

In my town you are suppose to do 28 day or longer rentals, but many of the VRBO / Air B&B listings I click on will rent to you for 2 weeks. So how are they enforcing this stuff?

Denver banned non-owner-occupied STRs, and at least from the news stories, they've been prosecuting people for lying on their registration forms about where their primary residence is (i.e. they say it's the rental when it's actually somewhere else). I'm sure it varies by jurisdiction, but some are certainly paying attention.

[Marshall Tucker]

when purchased often had a break even or a small negative cash flow when purchased

I guess depends on the market, I looked hard at Panama city to pensacola, St. Simons to myrle, and best I could figure is negative cash flow about $7.5k outta the gate on 90% financing. And that was being maybe a bit optimistic on the rentals.

Of course, it's easy to make excel tell you what you want to hear. quite another IRL. I also found hard evidence, vs. what your starry-eyed neighbor will tell you, these things were appreciating at 4-5% annually (albeit not in a straight line) over time.

[liv2ski]

^^^^At 90% ltv I would be shocked if you could get a breakeven cash flow. My daughter bought a 2 unit property 2 years ago with 15% down and if she moved out of her one unit tomorrow and rented it out her positive cash flow would be about $1,500 a month which isn't bad. Just got her refi appraisal in and it went up $105k in value in 2 years. She has put $40k into fixing it up and lots of Dad free labor. She made a good investment for the long haul.

[Telemarketeer]

Denver banned non-owner-occupied STRs, and at least from the news stories, they've been prosecuting people for lying on their registration forms about where their primary residence is (i.e. they say it's the rental when it's actually somewhere else). I'm sure it varies by jurisdiction, but some are certainly paying attention.

Is that just Denver County or the entire metro area?

[Danno]

Is that just Denver County or the entire metro area?

The entire metro area isn't a political monolith; his reference was to City/County of Denver. City of Boulder did the same WRT non-owner occupied STRs (not sure if they're prosecuting, but I do know that they do enforcement). But not sure about other cities in Boulder County.

[Telemarketeer]

The entire metro area isn't a political monolith; his reference was to City/County of Denver.

Yeah, I know, and Denver county is pretty small, so I was wondering if all of the cities/counties had gone this direction, or just the little Denver county. Relevant as we are looking to buy something down there and probably rent it out. Would obviously do some homework first.

We just stayed at a sweet little Airbnb in Boulder that was walking distance to Pearl Street and that was pretty nice, not cheap, but we had a crew so ended up being a lot cheaper than any other hotel in town. I think it was welcome weekend or some crap.

[Danno]

Yeah, I know, and Denver county is pretty small, so I was wondering if all of the cities/counties had gone this direction, or just the little Denver county. Relevant as we are looking to buy something down there and probably rent it out. Would obviously do some homework first.

We just stayed at a sweet little Airbnb in Boulder that was walking distance to Pearl Street and that was pretty nice, not cheap, but we had a crew so ended up being a lot cheaper than any other hotel in town. I think it was welcome weekend or some crap.

well, I would not buy something with the intent of using it as a STR. Because any community that is hit hard by the proliferation of STRs are likely to go this route if they haven't already.