If they call a note after it’s transferred to an LLC then congrats bank you own a house Banks don’t want to own real property
Mortgage banker of 10 years here—- Fannie Mae backed loans (I’d have to check Freddie) allows a transfer of title to a LLC as long as the original person on the note/title owns at least 50% of the LLC it’s transferred to. There are other stipulations, like it has to be purchased as an investment property up front, or has to remain under the initial occupancy type for at least a year (because why would you move a primary residence to a LLC right away), but it’s overall not an issue unless the servicer has additional overlay guidelines that don’t permit it. If it gets transferred to a LLC that isn’t owned by the initial person, it should realistically get called due.
First year doing AirBNB and have had 4 guests already stay with 14 more already booked. I’m loving this thus far! The house is only an hour from my condo in Detroit so I split time. All of the rents are covering my renovations and updates to make the property better for myself and my family. Never selling this house
just got an offer accepted on a lot near our current airbnb. anyone build something from the ground up with airbnb in mind?
Gorgeous! Is there anything specific you did for AirBNB usage in the build-out? I'm thinking about functional things like owner closets, but also bedroom placement/etc type insights.
I stayed at a new build at the beach for nye that was totally set up as a rental and the main thing I noticed is every bedroom had a bathroom.
Yes to varying degrees. Some stuff is obvious, as much decking and outdoor space/seating as we could fit. We also put a variety of seating options on/off the kitchen in lieu of a formal dining room since we tend to host large groups/families. Standard stuff for vacationing families - rec rooms (pool table, bocce, ping pong, etc.), media rooms, outdoor showers, pools w sun shelf and bar seating, jacuzzis, pool cabana, dune deck, beach tent/lounge service, putting green, etc. Every bedroom (8 & 9) has an attached bathroom, we also put half baths on our lower levels and off great room/LR. We have 6 master suites w king beds in each, then the rest are queens/twins, and then bunk rooms for kids (we get the most positive feedback on these). We have wet bars w/ fridge on every level for convenience. Two washers/dryers in each. EV chargers. Spoiler
That's baller. Would you mind going into more detail on the building process? Did you hire an architect for the plans, are you the builder or did you hire one, really whatever your willing to share would be very interested in. My parents have a place in North Myrtle Beach and I would love to jump on a lot if it came available for something similar.
Anyone have a separate booking site in addition to airbnb? I just booked an airbnb and found the owners separate booking site that looks like it would be cheaper if I booked direct (about $500) Swaybooking is the site if anyone knows it. Still have a few weeks to cancel airbnb with no fees, but I'm wondering how long it would take for their own booking site to open up the reservation so I could book it direct. I actually emailed them a second ago to see what they say too.
It’s very common for vacation housing. When i was looking at a lake nearby a lot of places that were managed by companies with sites also had them on airbnb, but just added their fee on to it. So you paid an extra fee with AirBNB. Always worth searching the name of a listing to see.
Been vacationing here for years, my grandparents had a place. Initially bought the first lot with intentions of flipping to a developer. Then Covid happened, wife already worked remotely, I make my own schedule, so we decided to build our dream house. Was already familiar with the builder (they had a couple architects they worked with exclusively on spec homes), they built a lot of new homes in the area and I was impressed with their work, experience (shore erosion, flooding, hurricanes). During the initial planning stages, peak Covid, STR’s started booming - couldn’t resist the opportunity, altered the plans a little (more bedrooms in lieu of larger gathering spaces LR/FR) to maximize rental ability and take advantage of the market at the time, but still the house we wanted for the most part and will eventually live in full time. We did well on the first property, but weren’t getting to spend much time in it ourselves bc we didn’t want to miss out on the revenue, especially during the summer. So we found a second lot to build with the idea of jumping between the two so we could spend more time down here. Went with the same builder. Process was smooth, our builder/GC was excellent. I don’t really have any tips as these were my first development projects, I’ve been renovating and renting/flipping my entire career. I trusted my builder, I knew his work. Being in a seasonal vacation market was totally new. The advice I received from people I know in the vacation rental market was typical, location-location-location (Full Oceanfront > Narrow Oceanfront > Oceanview > Oceanside > etc.) and higher end properties in destination locations tend to fair better during a down economy than the rest - and that is starting to play out now. You couldn’t find anything available Memorial Day - Labor Day the last 3 years, now you can on the lower-mid tier properties. We’re fortunately booked out through October on both, so long as we stay strong during the summers we’re in a good spot.
This. We use a booking site/company specific to our location, and direct book with repeat guests who want the same/similar weeks every year. We’re direct booking almost 1/3 of our guests now.
Was this the thread where the guy is killing it with tiny homes on Airbnb/VRBO? been wanting to follow that path but don't live near an ideal area for it. Im currently down in Port St Joe and noticed RVs and permanent RV lots all up and down the coast and thinking I could potentially replicate the tiny home thing but just using campers and preset lots. Anybody ever tried similar?
I wouldn't say killing it, but I have one tiny home outside Mt Rainier and another 190 sq ft cabin in the North Cascades that both do well.
Is the decline in bookings simply due to inflation and less disposable income for families, which leads to cutting out a/some vacation(s)?
A lot of it is also just reversion to the mean. COVID years were bonkers for domestic and staycations.
Thanks for the response and pretty much echos what I was thinking. I manage 3 properties for my parents in North Myrtle Beach. Kind of similar story. There is a pretty unique condo community there that they wanted a place in for a while, a condo came available in 2018 that they grabbed. Immediately rented out for basically March - October. Awesome situation but they actually wanted to use the place some, but hard to turn down that revenue. Another came available in 2019 in the building next door. Same situation though, fully booked up. Good problems to have. In 2021 a house came available in the area we had been looking/wanting in for a while. Jumped on that and it did really well last year for it's first full year of renting. But short term rentals are starting to take a hit right now, at least in our area. The house this year still has some open summer weeks but the condos are still completely booked out through October. Mostly due to pricing I would guess, the condos are 2 bedroom, 2 bath that rent for $2500 a week while the house is more like $10,000+. But it's fine for us cause we bought the house with the intention of wanting to use it more than the condos, so we are just looking to break even on the year more or less. Both my parents are retired so if the house is open they are usually there. I'm thinking that with the short term rental market turning there could be some opportunities to do what you did with a new build though, so thanks for the advice on that front.
Anyone have additional things that can be rented at their short term rental? I’m putting my inflatable kayaks in a lock box and charging a per stay amount. Making people fill out a liability and damages form as well but didn’t know if there was something else I should take into consideration.
Fucking central american "democracies". Been under contract or ~8 months now but Gov't has locked down private sales. Seller is saying fuck it and pulling out and will wait until things open back up to relist/sell vs just doing extensions. Nothing is selling between private parties, only selling if you essentially purchase a corporation/llc that holds a property. So I guess my money is sitting in a high yield savings for the near future
So this build turned into a nightmare. Lumber costs wen through the roof so the build ended up at like 2x their original estimate. Put everything on hold, then interest rates went crazy. Could never get financing, had to pay about $10K out-of-pocket to the GC. But listed it for sale a bit ago, and it just sold for a little less than twice what I purchased it for. All-in-all a good result, but lots of headache and lessons learned.
There were maybe a dozen airbnbs in my immediate area of town in 2020. There’s 175 of them now. Tourism is not up 10x.
We’ve got one in our neighborhood that doesn’t give a damn about who they rent to. It gets wild there. We’re still pretty restrictive though. We’ve only had one rager. Fuckers shit in the hot tub.
Anyone have suggestions on where to go to figure out ballpark new build construction pricing? I’m looking to get a cabin outside the city and potentially airbnb it to make it economical. Whenever I google “a-frame” or cabin builder plus my intended location it doesn’t give any indication on price unless someone build it themselves. I’m thinking I want something like this: https://www.instagram.com/upstate_aframe?igsh=YWx2YWs1OTJnaTBq
I don't think you're going to find anything reliable online. Best bet is to contact a few GCs in the area you want to build and talk to them. With interest rates + lumber costs I think prices are going to be all over the place. Would recommend buying land first, and keep in mind that if you finance the land that note will need to be paid off and bundled in with your the construction loan. Source: I spent the past 2+ years pulling my hair out trying to build a new cabin and eventually cut my losses and just sold the land. Now about to do the same thing, but for a permanent residence rather than rental, and feel much better prepared.
Someone buy the OG Mt Rainier Airbnb that was the impetus for starting this thread. https://redf.in/L72Pwb https://www.airbnb.com/rooms/44492968
1. I want to buy a piece of property in WA and build a custom home. 2. This property has been very profitable, but it's essentially an RV and not an appreciating asset. Thought about selling the tiny home and developing the land, but see reason 1.
En las montañas. Either Issaquah area/on the I-90 corridor 30-45 min east of Seattle, or further north outside of Bellingham/in the shadow of Mt Baker.
Unfortunately not. Oaxacan property is next on the list, hopefully within 5 years. Has to be all cash though This is right next to my regular surf spot. $550K https://www.realestateoaxaca.com/huitzilbeach.html
It fluctuated, but generally grossed around $35K/year. Not a ton, but a nice chunk of change. Makes like 75% of the income from June - September.