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I have a running argument with my wife about going into houseflippery to make money and "exercise creativity". I rank it up there with day trading and internet poker as a business model. HGTV and DIY have a lot to answer for.Quote:
Originally Posted by SteveinMN
I think the most intelligent way of making money in housing is to carefully buy, renovate and sell the primary residence. You have to watch the IRS rules carefully but a significant amount of gain can be tax free. The downsides are living in a perpetual building site and moving your own home every two or so years.
But a young couple with some experience in renovation or ability to learn can earn some additional income. I think this is what our neighbors are doing but I wish they would take better care of what they have while living there.
My friend and I stayed in a cute old 2 bedroom house in a nice area of Kansas City. From my extensive market research (haha) this house sells for about $200,000. The owner rents it out via Air bnb for $150 a night. He bought it recently, did some renovation, hires a cleaning lady. It was rented the night before we stayed there and was rented out the night of the day we left, so it looks as though it isQuote:
Originally Posted by SteveinMN
Based on this snapshot of facts it looks like this house owner would make money. But that $150 a night seems high to me, that is what full out Bed and Breakfast Inns charge. My friend rented this house because it accepted dogs and it has a fenced in yard (which the dogs managed to overcome, gate blew open, drama ensused, but dogs were caught and contained.)
My friend likes to send lots of communications, so I will bet she sent around 8 emails asking for information. That right there puts me off Air bnb. I like my financial instruments, they do not ask me annoying questions.
Containment mishap aside (I hope that was remedied for the next dog owners), this "host" is offering something unusual -- enclosed accommodation for dogs. He can charge more for that right up front. It also creates certain expenses for him that non-dog-hosting owners do not have. So that rental will cost more.Quote:
Originally Posted by iris lilies
And I doubt that house is rented every night. A friend of mine rents a lake cabin which usually is booked solid each summer. In the winter, though? Crickets (and mice and spiders). It's rarely booked. So he's collecting his weekly for maybe 25 weeks of the year and that has to cover all 52 weeks including the weeks he and his family are there and the weeks of no occupancy. Admittedly, non-occupied time often is cheaper (thermostat can go way down, no one is throwing away silverware). But, still,...
My friend has to be at the cabin pretty much every (occupied) weekend to clean and prepare for the next guests. He has to guess whether the folks who want to stay will be abusive of the cabin or the neighborhood (mess, late loud parties, etc.). He has to tend to the Internet listing and answer those emails. No idea what he makes on a per-hour basis with that cabin, but I don't think it would be worthwhile to me (not simple at all). But it seems to work for him.
I had a friend that he and his wife bought a run down house, moved in, fixed it up and after 2 years would sell. They did this over and over again for years and made a ton of $. I would not want to do that but it was worth it to them.
On the subject of two homes,
I remember once at a weekend women's seminar I attended we were going around the room talking about our "stressors." A woman who just looked like she was the most affluent among us (I was in the crapper at the time, so it surely wasn't I) said that her biggest source of anxiety was remembering which of her three homes didn't have a corkscrew, or a coffee maker, or whatever. Managing those homes was so stressful, and I totally believe it, even though that particular problem seemed very remote to me..
Yet, I am still thinking of going at least short term with the home in NJ / lake house in VT approach. It crossed my mind to do airb&b, but I'm not sure I have the temperament for it. I can barely make my own bed, never mind making sure my guests have everything they need in ship-shape order. I just don't think that's me. I'd rather form a corporation among my family members who would like a "share" in a lake house and recoup money that way. But that's fraught with land mines also. My DH was raised in the summer by several uncles and aunties in little bungalow off of Rockaway Beach in NY. They had purchased the vacation home when they emigrated from Scotland.
The matriarch of the family was asked how she was going to settle the house among the family when she died, and she said she didn't need to bother. She said "A___ will do the right thing." Right. "A___ basically commandeered the house and no one else got a share. Plus, after dealing with my BIL next door, I am more than convinced not to succumb to the potential benefits of splitting the cost of a home.
I still have it in my "wee pea brain" as DH would say to purchase those two properties in VT in the islands if they are still available in the spring. I could totally airBnB the tiny one, because if I'm there anyway, it wouldn't be much of a bother, even if I don't have the temperament. It's less than 400 square feet.
It was interesting reading the profile of an air bnb investor on Mr Money Mustache's blog. There were a number of people who felt it was very detrimental to their hoods. I know one person who has some and she is reverting to monthly rentals. Said that short term rental biz was a huge headache even though she made more money. Daily cleaning, insurance, upset neighbors, licensing - she had a long list.
At last night's neighborhood meeting I mentioned to one old timer couple that we were thinking of moving. The male member said they were considerig it, too. That made my stomach sink. I feel very guilty for thinking of jumping this ship but the fact that they are considering it too is shocking and also validating. They have been here 40 years and raised children here back in the day when few children were here.
On thing I KNEW I would NOT do if we bought a house in tiny Hermann, MO was rent it out via Air bnb. . Not only would that be a Pain in my ass, it would not bring value to the neighborhood. Rooming houses, been there, done that here in this neighborhood.Quote:
Originally Posted by pinkytoe
One comes to realize what they loved about a place has changed in fundamental ways and that moving on is a likely plan of action.Quote:
I feel very guilty for thinking of jumping this ship
if one loved a place, however if one loved the people there hmm, unless they had also all moved on, to a different town, a different state, or beyond this life in some cases.
:laff:Quote:
Originally Posted by LDAHL
This made me laugh and think of the name Dave Del Dotto and all those late night flip house commercials, selling books and "systems". One tends to make money on the buy, so you have to be smart. If you could do that often enough and easy enough, you wouldn't be marketing books, aka making money that way.
Heck, there was a radio commercial for some family that "as seen on HGTV", did this stuff. Nothing was ever mentioned about how much HGTV paid them, if any of the material was paid for by the show or sponsers, etc. It was all take this wall down, put in granite counter tops, do this, etc. It is easy to make money, if you get to spend other peoples money and keep profit. I heard the commercial and looked them up and just shook my head.
Once again, I get a post on Facebook that matches a topic of current discussion.
Just seen on FB: Airbnb rigged with hidden cameras.
https://www.msn.com/en-us/news/crime...ob-fb-enus-280
Everything has a season. You have mentioned in other posts that you and a core of other people have worked hard to build your neighborhood into what it is now. Today it's something different than it was (even if it's way better now). It's also been a long time and none of us are who we were 40 years ago. I can see that you and this neighbor are at a different stage of thinking about staying.Quote:
Originally Posted by iris lilies
IL, I would be exhausted with all the crime, needing to have a close relationship with the neighborhood cop to stay safe, etc. Is is that or is it that many of your friends have moved?
Friends have moved. Also, coddling the criminals now seems to be the standard.Quote:
Originally Posted by Teacher Terry
The guy who has been here 40 years and is thinking of leaving is utterly disgusted at the policies of the new procescuting attorney. He was our neighborhood's point person for identifying charged criminals, tracing them through the criminal justice system, organizing our neighborhood to get them behind bars and/or an order of protection to keep them out of our neighborhood. He can no longer do that because the prosecutor has closed all avenues to information. The cops are no longer issung timely and targeted crime stats.
In my view criminals are gonna create crime, that is their m.o., nothing new about that.
The new thing is apologetics from our elected officials, explains ng and protecting the criminals. Our mayor is useless, coddling the rioters. My state representative is out there daily protesting against police. The police chief and prosecutng attorney close off information, one reason being protecting the confidentiality of the perps.
[Ok, I edited my swearing. Dont report me!]
I can see why you would want to move. Sounds too stressful.
The new people are clueless. Either they post ponderous lectures on Nextdoor about our need to understand the criminal element and their world view or the new people stand helplessly and cry "someone must do something! " when the gunshots and Thievery invade our neighborhood.Quote:
Originally Posted by Teacher Terry
Stepping up to volunteer with our neighborhood association? Doesnt occur to them.
Exactly because they don't want to have to do any actual work. Gun shots would do it for me. I would be gone.
Likewise; I'd gladly sacrifice the convenience of city life for personal safety. I can find convenience--even walkability, if not architecture--in a well-chosen suburb.Quote:
Originally Posted by Teacher Terry
Far easier to post a screed than to actually work to effect the change they say they want to see.Quote:
Originally Posted by iris lilies
As for NextDoor, after a few run-ins with people like that, I deleted my account. I think I know what the site founders were hoping to create. But -- around here anyway -- they largely ended up with a junior version of craigslist and a bunch of Ned Flanders post-alikes. :(