Having an AirBnB rental...

SS!

SS!

Long Time Member
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I know this is a stretch because most of you guys are so old you're just thankful you woke up this morning but here goes.

Anyone on here have any experience renting out your place on AirBnB, VRBO or a similar platform.

Trying to decide on whether or not to keep the house we have now as a rental, airBnB or just sell it because the market is stupid high.

PM is best. Thanks!
 
SS! said:
I know this is a stretch because most of you guys are so old you're just thankful you woke up this morning but here goes.

Anyone on here have any experience renting out your place on AirBnB, VRBO or a similar platform.

Trying to decide on whether or not to keep the house we have now as a rental, airBnB or just sell it because the market is stupid high.

PM is best. Thanks!
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I’m my opinion it depends on the property, if it’s fairly low maintenance and self contained (yard,snow removal etc) it’s a lot easier if your not around to babysit it. Spending the extra money on a professional reliable cleaning service is well worth it for consistent better reviews, Its always nice to help out the single mom working nights at the local pole bar auction banquet or neighbor teenage kid to earn extra money for flatty hats but it never works out.
The hotel mentality and entitlement of abusing your place is still there, but I’d rather have people there less time in a vacation rental than full time tenants if you can have some decent occupancy.
Sorry I would’ve responded sooner but was ankles deep in a re run of Matlock and Murder she Wrote is up next.
 
Andy Griffith just got over, and lunch has tapioca pudding so I'm going to type fast.

I did work for a rental maintenance company. For about a month. I've never seen such hack job, low ball, cheap, shoddy, work practice.

If your not capable of doing maintenance, your paying high dollar for good contractors, or at the mercy of the hacks.

Personally, I'd sell it, and buy raw ground. Less worry
 
I have a family friend that owns a handful of vacation rentals throughout the country, that he rents out through Airbnb and Vrbo. I don’t think he does much more than break even with the mortgages for now, but he’s said he’s definitely not losing money on them, and he has some awesome places to vacation to with his family. I think a lot depends on what comparable Airbnb’s are going for in the area and if they are maintaining a decent rate of occupancy. Obviously it all boils down to what kind of consistent revenue you think you’ll be able to make off the property.
 
I'm 73 so no PM sent.

Here in the Emerald Triangle lots of folks rent their homes to indoor growers for huge money. A good friend of mine lives next door to one.
 
SS! said:
I know this is a stretch because most of you guys are so old you're just thankful you woke up this morning but here goes.

Anyone on here have any experience renting out your place on AirBnB, VRBO or a similar platform.

Trying to decide on whether or not to keep the house we have now as a rental, airBnB or just sell it because the market is stupid high.

PM is best. Thanks!
Click to expand...
1) Most people who embark on the vacation rental scheme over estimate occupancy by a lot. It's going to vary based on market but 40% is probably a good starting point. Remember in a vacation situation a rental day can preclude you from attracting renters around that day. For example, if you commit to a rental for Friday and Saturday nights, you've excluded anyone who may come along and want to rent Thursday to Monday. Because of this you end up with a lot of "dead" days on the calendar.

2) When you say "keep the house we have now" if this is your primary residence there is a $500k cap gains exclusion for married couples. You'd be wise to consider taking this tax break and invest elsewhere.
 
hossblur said:
Andy Griffith just got over, and lunch has tapioca pudding so I'm going to type fast.

I did work for a rental maintenance company. For about a month. I've never seen such hack job, low ball, cheap, shoddy, work practice.

If your not capable of doing maintenance, your paying high dollar for good contractors, or at the mercy of the hacks.

Personally, I'd sell it, and buy raw ground. Less worry
Click to expand...
Yeah I could do all the repairs myself and I've honestly have way too much time on my hands due to my post count here. We just finished remodeling it so I feel pretty good about not having too much stuff to do besides a few cosmetics here and there for a bit. But yeah I was thinking sell and buy some land to build a cabin on....
 
idahomuleyhunter said:
1) Most people who embark on the vacation rental scheme over estimate occupancy by a lot. It's going to vary based on market but 40% is probably a good starting point. Remember in a vacation situation a rental day can preclude you from attracting renters around that day. For example, if you commit to a rental for Friday and Saturday nights, you've excluded anyone who may come along and want to rent Thursday to Monday. Because of this you end up with a lot of "dead" days on the calendar.

2) When you say "keep the house we have now" if this is your primary residence there is a $500k cap gains exclusion for married couples. You'd be wise to consider taking this tax break and invest elsewhere.
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The house we are moving into is going to be our primary. I think we are ok with just renting it out 3-4 months a year if we go that route. Its in the next town over so when the wife and i have a date night during the off season we could use it as the f shack.

I feel like if we sell it i'm going to spend the money on hookers and blow and then waste the rest of it.
 
SS! said:
The house we are moving into is going to be our primary. I think we are ok with just renting it out 3-4 months a year if we go that route. Its in the next town over so when the wife and i have a date night during the off season we could use it as the f shack.

I feel like if we sell it i'm going to spend the money on hookers and blow and then waste the rest of it.
Click to expand...


Didn't think about a shag shack.

Now I change my advice.

I know come winter it's hard at my place having the trailer heat running without kids hearing, or the neighbors noticing us.????
 
SS! said:
Come on up! There’s internet!
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SS! said:
Damn….so like 1860s timeframe?
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SS! said:
Come on up! There’s internet!
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9746"]
The house we are moving into is going to be our primary. I think we are ok with just renting it out 3-4 months a year if we go that route. Its in the next town over so when the wife and i have a date night during the off season we could use it as the f shack.

I feel like if we sell it i'm going to spend the money on hookers and blow and then waste the rest of it.
[/QUOTE]
 
Sell it because the market is super high. If you do rent it you should get a rental manager or “host”. If you don’t then you will have to inspect it after each rental, answer all the renters questions, deal with all the complaints. I’ve rented with VRBO some and never deal with the actual owner.

Learn to accept all the crap that is going to happen. I had a vacation property that I rented for eleven years. But it was a rental company.

Had a locked owners closet, they would take the pins out of the hinges and steal the stuff. They stole vacuum cleaners, alarm clocks, throw pillows, pot and pans and dishes. Anything they could get their hands on.

I only went there about five times a year. Always needed to take a tool bag and paint supplies to patch the holes in the wall and fix other stuff.

I think I lost $45,000 in eleven years and that doesn’t include a mortgage. But I did get a lot of free vacations.

As someone else said, renters think they are entitled.
 
I bought a ski cabin for VR/STR in 2015 and have since taken out way more in gross rents in those 7 years than I paid for the place. If only I could go back and buy six cabins instead.

Slayed it even more during COVID.

Yes, renters suck and I spend alot of time on it - but it has been one of the most profitable activities/investments I have ever been a part of.

Huge YMMV.

Research comps carefully and if you can't find enough local comps on AirBNB/VRBO, then take a clue.

Make sure you understand concepts like 1031 exchanges and depreciation recapture before getting involved in renting properties (whether LT or ST).
 
jdp010 said:
I bought a ski cabin for VR/STR in 2015 and have since taken out way more in gross rents in those 7 years than I paid for the place. If only I could go back and buy six cabins instead.

Slayed it even more during COVID.

Yes, renters suck and I spend alot of time on it - but it has been one of the most profitable activities/investments I have ever been a part of.

Huge YMMV.

Research comps carefully and if you can't find enough local comps on AirBNB/VRBO, then take a clue.

Make sure you understand concepts like 1031 exchanges and depreciation recapture before getting involved in renting properties (whether LT or ST).
Click to expand...
Thanks I appreciate it! I was starting to get cold feet about it and wanting to sell it. I appreciate your post!
 
SS! said:
I know this is a stretch because most of you guys are so old you're just thankful you woke up this morning but here goes.

Anyone on here have any experience renting out your place on AirBnB, VRBO or a similar platform.

Trying to decide on whether or not to keep the house we have now as a rental, airBnB or just sell it because the market is stupid high.

PM is best. Thanks!
Click to expand...
I don't rent but I'm doing pretty well for 63. It only took 2 months of cardio and serious weightlifting. I dropped 9 or 10 years off. AIR BNB is good for the people I know who is it. Some use VRBO and like it.
 
Sell it while the market is still on the high side. Take the net proceeds and sign up for a Robinhood account. Play smart for a few years until it's all gone. It'll look fantastic on your taxes as a huge loss. Trust me, I used to be a stock broker and now I am a Real Estate Broker so I am an expert in both fields.

Airbnb isn't what it cracked up to be. Seems to be more of a pain in the ass.

Gotta go....wife needs wiping and help getting off the toilet.
 
Wiszard said:
Sell it while the market is still on the high side. Take the net proceeds and sign up for a Robinhood account. Play smart for a few years until it's all gone. It'll look fantastic on your taxes as a huge loss. Trust me, I used to be a stock broker and now I am a Real Estate Broker so I am an expert in both fields.

Airbnb isn't what it cracked up to be. Seems to be more of a pain in the ass.

Gotta go....wife needs wiping and help getting off the toilet.
Click to expand...
Stock Brokers know taxes now? Come on guy.
 
There are a couple sites that offer vacation property analytics. Shows average cost per day and length of stay, as well as most active dates.

I almost pulled the trigger on a nice home for a Vrbo 2017! Pretty sure it would of payed for itself. The dude that bought it, sold it for a 200,000 profit last year according to tax records. Just my luck.

Tough call to make with real estate being so over priced now. Guys in the know are saying a ton of homes are about to go up for foreclosure. Then you read about the huge housing shortage.
I think I'd roll the dice for a couple years and keep the rental on the high side to eliminate some of the trash.
 
junior said:
There are a couple sites that offer vacation property analytics. Shows average cost per day and length of stay, as well as most active dates.

I almost pulled the trigger on a nice home for a Vrbo 2017! Pretty sure it would of payed for itself. The dude that bought it, sold it for a 200,000 profit last year according to tax records. Just my luck.

Tough call to make with real estate being so over priced now. Guys in the know are saying a ton of homes are about to go up for foreclosure. Then you read about the huge housing shortage.
I think I'd roll the dice for a couple years and keep the rental on the high side to eliminate some of the trash.
Click to expand...
Prices always go up forever. Until they don't, of course....
Notice all the people making money were the ones buying coming out of the last recession. The gentleman above notes that he is making good money on a ski rental he bought in 2015. I'm not sure where he is or what he paid but I'd be interested to hear if he could pay today's prices and still make the numbers work?
 
junior said:
There are a couple sites that offer vacation property analytics. Shows average cost per day and length of stay, as well as most active dates.

I almost pulled the trigger on a nice home for a Vrbo 2017! Pretty sure it would of payed for itself. The dude that bought it, sold it for a 200,000 profit last year according to tax records. Just my luck.

Tough call to make with real estate being so over priced now. Guys in the know are saying a ton of homes are about to go up for foreclosure. Then you read about the huge housing shortage.
I think I'd roll the dice for a couple years and keep the rental on the high side to eliminate some of the trash.
Click to expand...
Cash out and take the tax break. You make money doing the opposite of the herd. Wait till these variable rate loans start to reset this summer then see how the "investors" vacation rental numbers look.
 
idahomuleyhunter said:
Cash out and take the tax break. You make money doing the opposite of the herd. Wait till these variable rate loans start to reset this summer then see how the "investors" vacation rental numbers look.
Click to expand...
Not sure who is getting variable rate loans these days but let me know who they are. I have some pretty cool Chumash obsidian arrowheads I am looking to off load.
 
Wiszard said:
Not sure who is getting variable rate loans these days but let me know who they are. I have some pretty cool Chumash obsidian arrowheads I am looking to off load.
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Almost all Helocs are variable rate. Lots of Califorians where I live are "paying cash" with equity borrowed from another home.
 
idahomuleyhunter said:
Cash out and take the tax break. You make money doing the opposite of the herd. Wait till these variable rate loans start to reset this summer then see how the "investors" vacation rental numbers look.
Click to expand...
I was actually thinking of how high a new home would be now. If you sell what you got, and buy new at inflated prices I'M not sure what you have accomplished? Also think about the kids if he has any, or parent that needs do down size? Also that equity may go along way if hes not making a lot of money. It would be a hard choice for me, but I like your thinking of going against the tide!
 
junior said:
I was actually thinking of how high a new home would be now. If you sell what you got, and buy new at inflated prices I'M not sure what you have accomplished? Also think about the kids if he has any, or parent that needs do down size? It would be a hard choice for me, but I like your thinking of going against the tide!
Click to expand...
If you sell and rebuy what you've gained is 15-20% of whatever your profit is. So it depends on just how big your profit is as to whether it makes sense. Here there are plenty of people sitting on mid 6 figure gains. 15-20% of that isn't nothing. And you're right, lots of extenuating circumstances that can change the decision process.
 

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