I have a 3 bdroom, 4 bdroom and a 5 bedroom. The larger house will certainly gross more but the expenses are exponential. Large groups are just rougher , more problems, things break more often, anyone who has kids knows...the more kids you get together, the more they run wild. Im not saying don't do it. But budget alot of time and $ for the big ones. I would say my sweet spot is 4 bedroom, 8 occupancy. If i purpose build an STR it will have 4 comparable ensuites.
Lol I did EXACTLY THE OPPOSITE of what you guys said and here’s why it worked for me: I bought a 3 bed 2 bath regular home in Tahoe where it’s FULL of large cabins, but I got the cheapest ugliest house on the block and turned it into a modern Scandinavian cabin. Now I outperform A-Frames and other cabins in the area by 2x because my design is different and modern and I focused on adding experiential amenities - hot tub, fireplace, games, outdoor living areas - and creating a KILLER 1st (5) images making EVERY room have a Instagrammable moment. Also, if I were to have waited to have more $$ to buy the big normal cabins, I wouldn’t have been able to get a STR permit since all of them ran out right after we got ours… sometimes scared money doesn’t make money. The key here is BE DIFFERENT! And think about your ideal clients and what THEY WANT!
That's awesome! Unique properties definitely are a benefit if the area has a calling for them. I know Tahoe just rolled out some pretty serious restrictions on STRs, which is why I have avoided the area, but I love that youve had some success with different strategies!
@@christianbachelder8608 yea South Lake Tahoe has strict location requirements (must be in the county not SLT), 900 total permits + a 500 ft buffer between STRs. We luckily got one of the last 10 permits issued (May 2021) + got our permit 4 months before the 500 ft buffer went into place. But that’s why buying whatever we could afford at the time and making it work was so critical. We couldn’t wait to afford a big cabin. I think the key here tho is w/ great design & strategy you can make a normal small house perform better. But strategy is key.
Disagree on the occupancy, I lowered my max occupancy to reduce wear and tear, celebrations, ‘dorm room’ effect…. then increased the quality of the house by putting in all top of the line furniture, amenities, and heated swimming pool. Marketed it totally different with max 4 people and my revenue is way up and my headaches are way down.
I have 1 bedroom cabins that are marketed as honey money suites and they have done great. To me its a lot easier to have couples plan a quick getaway, date night, anniversary or birthday instead of having 20 people plan something. Also as noted before lower utilities and less wear and tear on the property. Also the cabin value is ridiculous when it comes time to sell since everyone around you is building 4 and 5 bedroom homes.
Absolutely. By no means are we saying you should only buy big. Just sharing our personal experiences. Love to hear about the success in a different asset type!
More beds more issues. More pillows, more sheets, more, more, more.. The cost per person renting actually goes down. I like smaller, nicer, homes with a higher cost per person. Better ROI, IMO
children can sleep in smaller spaces, this is true. but they aren't less deserving of consideration and comfort than adults just because they're little. many kids today are super sensitive to things like temperature and noise and privacy. and not all parents want to just "dump" their kids into a hot attic. if kids aren't comfortable, they're more likely to either wake up (and/or wake parents up) in the middle of the night, or resist going to bed entirely. i know what you mean, and i know how i sound (i don't have any kids, by the way, but i do have a very vivid memory of a multi-family vacation when i had selected, upon arrival, one of two twin beds in the room i wanted to share with the only other girl my own age-- which was 10 or 11, just old enough to have begun feeling self-conscious-- only to be unceremoniously dumped into the basement with a pull-out sofa and all of the other, younger kids so that my mom and her friend could have the room to themselves. i locked myself in the bathroom and cried for like five hours in protest, and i still ended up having to sleep in the creepy basement with a bunch of gross and immature boys! ... had it been a few years earlier or a few years later, it might have been a whole different story...) ... anyway, i guess my point is, i suspect there are parents who would appreciate a home where both the adults and the children's needs and comfort had been considered.. because without one, you're going to risk sacrificing both. i think it could be as simple as just reframing your perspective, because you are actually doing this already.. but i honestly think that parents will actually perceive even more value if they see that you've actually thought about the space in terms of how it benefits the kids, i.e "we built these cozy sleeping nooks in the corners of the a-frame, with cubbies for kids to keep their stuff contained, and built-in nightlights next to every bed, and we have some books and games and these cool coloring postcards that are already stamped and there are tons of washable markers and here's where they can color and not worry about making a mess, and heres the mailbox where they can send the postcards to grandma and grandpa or whoever" and the parents understand that this is an activity which could potentially give them some time to themselves, but the kids don't feel like they're being left out of something cool and fun that the adults are doing, they just know there's something for them to do that they don't need to bother their parents to accomplish. sorry for the quora-length post on a topic nobody was asking about but it's just what occurred to me as i was watching. i don't think it could hurt, but it's obviously more relevant in some cases than others (i.e. miami)... although there are always people traveling with kids, so even in miami it could be a niche market that no one else is really targeting ¯\_(ツ)_/¯
You are right. We were speaking mainly because we have seen the property. It is by no means an 'attic'. It was a fully built out top floor, where some older family member may have a hard time accesses up and down the stairs. But our goal was to build out a 'kids' paradise with arcade games and other entertainment, where the kids would WANT to be instead of buggin mom and dad on their vacation!
I absolutely agree with you. I don’t want my kids uncomfortable. The room we designated for my boys in the last Airbnb we rented in Lake Havasu, AZ was so dang hot that my sons ended up sleeping on the couch. It’s almost like the owners just threw a bed in there and didn’t even consider the comfort of the guest sleeping in there, kids or otherwise. Unfortunately it was only a 4 bedroom and the other couple we were traveling with obviously needed the 2nd king bed and our 4 girls needed the bunk room. Otherwise I would have put the boys in there.
20 in a 6br is extreme. 6 br i would limit to 14, 2 per room plus 2 extra. Folks always being extra guests anyway. Went though 60 properties in 10 years doing STR.
My 6 bedroom sleeps 19. Its 3100 sqft and has 8 beds and two sleeper couches. I have 2 big dining room tables and 2 picnic tables out back. I get complaints on how much space it has.
Absolutely right. However, a 6 bedroom is a general description. I have one myself that sleeps 20 but it has 3 extra rooms with gaming units and either pull out couches or bunk beds for kids. An important thing to remember here is that we dont always have 20 people there on every stay. 10-15 people parties regularly book. But in the event of a church youth group or a large family vacation, extra beds helps facilitate a larger group that wouldn't want to book multiple cabins.
We actually have a six bedroom short-term rental in Kissimmee. something I would warn you about when you put too many people in a six bedroom that could sleep 12 to 14, you're going to be looking at parties trying to come in and they will ruin your house. Be careful. the best is to sit with two per room. We actually have a pool and a game room in our garage and we are doing exceptionally well. We now have a 4 bedroom it is doing great as well. You also want to make sure that the game rooms are fit so that families interact together at children just don't go off and do video gaming.
We have a 6 bedroom too with a pool. Boy the pool sure brings in a lot of extra coin! (The house is also waterfront!) I’m doing $15k a month this summer!!
Do you find that your bookings are dropping off in August? I've heard from others in the Kissimmee market who are noticing less bookings than earlier in the summer.
Great feedback. As mentioned on a previous comment is we were talking about a 6 bedroom cabin with 3 bonus/game rooms that had pull out couches and bunks. Which is essentially like a 9 bedroom, but nontheless, good feedback!
What does someone do during something like Covid.... Say you had 20 homes leveraged, and 1/3 of the tenants just say " I'm not paying".. does the Government have relief to the real estate investors?
Great video! I recently saw where instead of traditional home movie theater seating a designer used standard couches, one behind the other and said not only was it a more reasonable and durable option, it's also very inviting to be able to sit close to your kids and use blankets etc.. the final product looked sharp!
You don’t need to add pool tables…do something smaller like foos ball or a book shelf full of games and puzzles…especially the nostalgia games the adults played as kids. HuGE HIT! I have a four bedroom with a sleeping loft…sleeping loft has single beds positioned into the angled ceiling.
Wow! I find your views fascinating about finding those unique properties and how the smaller rentals will get hit harder. It sounds like a great strategy.
Thanks, David and Christian! Great video! I’m sure I’ll watch this one at least once more, as there were so many great points to consider. 🌞 Currently in the design phase with our architect to rebuild the cabin we lost in the Smoky Mountains in March. Our beautiful 3/3 burned to the ground just 5 weeks after closing. 🤦♀️ So grateful that we were fully insured and can rebuilt something even better than what we had before. Better use of space (there will actually be enough room for all guests to sit TOGETHER at a dining table 🤯) while gaining another bedroom and bathroom. Also making it wheelchair accessible, which is SO much more inclusive, and will set our place apart from much of what I saw while shopping this market. It’s a long road ahead, but we’re excited about the opportunity that has come out of this loss. 🌞 Ever inspired by your content. Thank you, thank you, thank you! ✨
A couple of my cabins were very close to that fire as well. I am sorry to hear about your loss. Glad the insurance was up to date! Cant stress how important that is enough.
I thought Brandon Turner mentioned in his book statically 3-bedroom 2 bath homes have more success for finding tenants. Are bigger homes necessarily better?
There is not always a golden rule in all of real estate. Real estate is very location specific. For long term rentals, typically the 3/2 model has yielded the best results. But I have seen with my STRs that the more unique the property, and the more people you can fit, the better my yields have been. By no means the only way to do it though!
I do not personally have any with Gyms, but I like that idea. I would however consider the liability of injury, especially to children if large weights or machines are available.
Good video, though I am not quite there. Would love to get a Airbnb in gatlinburg. Also you mentioned Dollywood. We've been to pigeon forge three of the last 4 years and never once thought of going to dollywood. LOL so much more to do for the kids there
I personally send each of my neighbors gifts the moment I buy an airbnb and give them my direct contact in case there is ever a noise complaint or a parking issue. My neighbors experience is very directly built into my airbnb model and should definitely not be taken lightly!
@@christianbachelder8608 Good for you. I'm sure buying gifts for the neighbors of your short term rentals makes all the difference in the world. I have a vacation home on the Oregon coast that I've owned for almost 20yrs. I can speak with experience with STRs. I've had SRT next door, behind me and now I'm going to have another next door to me. You and your ilk are conducting a hotel business in neighborhoods where they don't belong. That's why towns are starting to regulate them. Your gifts don't mean crap to a residents quality of life that your STR affects.
@@jimmyj422 Great feedback and I appreciate your opinion, so dont take this as confrontational. The area here we were specifically referenced is the smoky mountains where cabins are few and far between, and where the majority of properties in the area are also vacation rentals. I definitely wouldnt purchase a 6 bedroom at the end of a residential street and turn it into a hotel. When I was discuss my gameplan with neighbors, that is when I STR the 3 bedroom and limit occupancy to 6 or 7 guests per stay. Obviously, this advise is market dependent. Please dont interpret this as what I am saying to do any any neighborhood in America. Sounds like you have also found a way to be very successful in your own pursuits!
@@christianbachelder8608 The town my vacation home is in has a population of about 1200 It has over 300 STRs. I've seen how the proliferation of STRs has changed the complexion of the town. It has been turned into a transient town with less affordable places for locals to live.
@@jimmyj422 I can understand your point and frustration. At some point certain markets will become over saturated and things will correct themselves. The lower performing STR’s will be sold and homes will become available again to families who actually want to live in them. I certainly wouldn’t invest in an STR that has too much competition. I also wouldn’t choose to live in a touristy area either unless my job required it.
![[#2024MAMA] ROSÉ (로제), Bruno Mars - APT. | Mnet 241122 방송](http://i.ytimg.com/vi/dgGqD28J6aQ/mqdefault.jpg)
I have a 3 bdroom, 4 bdroom and a 5 bedroom. The larger house will certainly gross more but the expenses are exponential. Large groups are just rougher , more problems, things break more often, anyone who has kids knows...the more kids you get together, the more they run wild. Im not saying don't do it. But budget alot of time and $ for the big ones. I would say my sweet spot is 4 bedroom, 8 occupancy. If i purpose build an STR it will have 4 comparable ensuites.
Very good points. Running those numbers with accurate projections on expenses is incredibly important.
Lol I did EXACTLY THE OPPOSITE of what you guys said and here’s why it worked for me: I bought a 3 bed 2 bath regular home in Tahoe where it’s FULL of large cabins, but I got the cheapest ugliest house on the block and turned it into a modern Scandinavian cabin. Now I outperform A-Frames and other cabins in the area by 2x because my design is different and modern and I focused on adding experiential amenities - hot tub, fireplace, games, outdoor living areas - and creating a KILLER 1st (5) images making EVERY room have a Instagrammable moment. Also, if I were to have waited to have more $$ to buy the big normal cabins, I wouldn’t have been able to get a STR permit since all of them ran out right after we got ours… sometimes scared money doesn’t make money. The key here is BE DIFFERENT! And think about your ideal clients and what THEY WANT!
That's awesome! Unique properties definitely are a benefit if the area has a calling for them. I know Tahoe just rolled out some pretty serious restrictions on STRs, which is why I have avoided the area, but I love that youve had some success with different strategies!
Agree. I did similar.
Don’t do what this guy is saying. Lots of headaches and angry neighbors.
@@christianbachelder8608 yea South Lake Tahoe has strict location requirements (must be in the county not SLT), 900 total permits + a 500 ft buffer between STRs. We luckily got one of the last 10 permits issued (May 2021) + got our permit 4 months before the 500 ft buffer went into place. But that’s why buying whatever we could afford at the time and making it work was so critical. We couldn’t wait to afford a big cabin. I think the key here tho is w/ great design & strategy you can make a normal small house perform better. But strategy is key.
Disagree on the occupancy,
I lowered my max occupancy to reduce wear and tear, celebrations, ‘dorm room’ effect….
then increased the quality of the house by putting in all top of the line furniture, amenities, and heated swimming pool.
Marketed it totally different with max 4 people and my revenue is way up and my headaches are way down.
I have 1 bedroom cabins that are marketed as honey money suites and they have done great. To me its a lot easier to have couples plan a quick getaway, date night, anniversary or birthday instead of having 20 people plan something. Also as noted before lower utilities and less wear and tear on the property. Also the cabin value is ridiculous when it comes time to sell since everyone around you is building 4 and 5 bedroom homes.
Absolutely. By no means are we saying you should only buy big. Just sharing our personal experiences. Love to hear about the success in a different asset type!
More beds more issues. More pillows, more sheets, more, more, more..
The cost per person renting actually goes down. I like smaller, nicer, homes with a higher cost per person. Better ROI, IMO
Totally respectable! By no means is our advise the only way to succeed in this area. We are just sharing some of our strategies!
children can sleep in smaller spaces, this is true. but they aren't less deserving of consideration and comfort than adults just because they're little. many kids today are super sensitive to things like temperature and noise and privacy. and not all parents want to just "dump" their kids into a hot attic. if kids aren't comfortable, they're more likely to either wake up (and/or wake parents up) in the middle of the night, or resist going to bed entirely.
i know what you mean, and i know how i sound (i don't have any kids, by the way, but i do have a very vivid memory of a multi-family vacation when i had selected, upon arrival, one of two twin beds in the room i wanted to share with the only other girl my own age-- which was 10 or 11, just old enough to have begun feeling self-conscious-- only to be unceremoniously dumped into the basement with a pull-out sofa and all of the other, younger kids so that my mom and her friend could have the room to themselves. i locked myself in the bathroom and cried for like five hours in protest, and i still ended up having to sleep in the creepy basement with a bunch of gross and immature boys! ... had it been a few years earlier or a few years later, it might have been a whole different story...) ... anyway, i guess my point is, i suspect there are parents who would appreciate a home where both the adults and the children's needs and comfort had been considered.. because without one, you're going to risk sacrificing both. i think it could be as simple as just reframing your perspective, because you are actually doing this already.. but i honestly think that parents will actually perceive even more value if they see that you've actually thought about the space in terms of how it benefits the kids, i.e "we built these cozy sleeping nooks in the corners of the a-frame, with cubbies for kids to keep their stuff contained, and built-in nightlights next to every bed, and we have some books and games and these cool coloring postcards that are already stamped and there are tons of washable markers and here's where they can color and not worry about making a mess, and heres the mailbox where they can send the postcards to grandma and grandpa or whoever" and the parents understand that this is an activity which could potentially give them some time to themselves, but the kids don't feel like they're being left out of something cool and fun that the adults are doing, they just know there's something for them to do that they don't need to bother their parents to accomplish. sorry for the quora-length post on a topic nobody was asking about but it's just what occurred to me as i was watching. i don't think it could hurt, but it's obviously more relevant in some cases than others (i.e. miami)... although there are always people traveling with kids, so even in miami it could be a niche market that no one else is really targeting ¯\_(ツ)_/¯
You are right. We were speaking mainly because we have seen the property. It is by no means an 'attic'. It was a fully built out top floor, where some older family member may have a hard time accesses up and down the stairs. But our goal was to build out a 'kids' paradise with arcade games and other entertainment, where the kids would WANT to be instead of buggin mom and dad on their vacation!
I absolutely agree with you. I don’t want my kids uncomfortable. The room we designated for my boys in the last Airbnb we rented in Lake Havasu, AZ was so dang hot that my sons ended up sleeping on the couch. It’s almost like the owners just threw a bed in there and didn’t even consider the comfort of the guest sleeping in there, kids or otherwise. Unfortunately it was only a 4 bedroom and the other couple we were traveling with obviously needed the 2nd king bed and our 4 girls needed the bunk room. Otherwise I would have put the boys in there.
20 in a 6br is extreme. 6 br i would limit to 14, 2 per room plus 2 extra. Folks always being extra guests anyway. Went though 60 properties in 10 years doing STR.
I agree! I would never put 20 guests in my 6 bedroom STR! There isn’t even enough table room for 20 guests.
Agreed. Most municipalities don’t allow it due to septic/sewer isssues. 2 people per bedroom or bathroom is healthy and safe.
My 6 bedroom sleeps 19. Its 3100 sqft and has 8 beds and two sleeper couches. I have 2 big dining room tables and 2 picnic tables out back. I get complaints on how much space it has.
Absolutely right. However, a 6 bedroom is a general description. I have one myself that sleeps 20 but it has 3 extra rooms with gaming units and either pull out couches or bunk beds for kids. An important thing to remember here is that we dont always have 20 people there on every stay. 10-15 people parties regularly book. But in the event of a church youth group or a large family vacation, extra beds helps facilitate a larger group that wouldn't want to book multiple cabins.
We actually have a six bedroom short-term rental in Kissimmee. something I would warn you about when you put too many people in a six bedroom that could sleep 12 to 14, you're going to be looking at parties trying to come in and they will ruin your house. Be careful. the best is to sit with two per room. We actually have a pool and a game room in our garage and we are doing exceptionally well. We now have a 4 bedroom it is doing great as well. You also want to make sure that the game rooms are fit so that families interact together at children just don't go off and do video gaming.
We have a 6 bedroom too with a pool. Boy the pool sure brings in a lot of extra coin! (The house is also waterfront!) I’m doing $15k a month this summer!!
Do you find that your bookings are dropping off in August? I've heard from others in the Kissimmee market who are noticing less bookings than earlier in the summer.
Great feedback. As mentioned on a previous comment is we were talking about a 6 bedroom cabin with 3 bonus/game rooms that had pull out couches and bunks. Which is essentially like a 9 bedroom, but nontheless, good feedback!
What does someone do during something like Covid.... Say you had 20 homes leveraged, and 1/3 of the tenants just say " I'm not paying".. does the Government have relief to the real estate investors?
There should be a reality show about buying rental properties and property management.
Great video! I recently saw where instead of traditional home movie theater seating a designer used standard couches, one behind the other and said not only was it a more reasonable and durable option, it's also very inviting to be able to sit close to your kids and use blankets etc.. the final product looked sharp!
Love that idea! Ill check it out in my own properties!
You don’t need to add pool tables…do something smaller like foos ball or a book shelf full of games and puzzles…especially the nostalgia games the adults played as kids. HuGE HIT! I have a four bedroom with a sleeping loft…sleeping loft has single beds positioned into the angled ceiling.
Wow! I find your views fascinating about finding those unique properties and how the smaller rentals will get hit harder. It sounds like a great strategy.
Heads in beds is short-sighted. Quality not quantity
I dont disagree. These are tactics we have found alot of success with, but by no means the only way to do it!
Thanks, David and Christian! Great video! I’m sure I’ll watch this one at least once more, as there were so many great points to consider.
🌞
Currently in the design phase with our architect to rebuild the cabin we lost in the Smoky Mountains in March. Our beautiful 3/3 burned to the ground just 5 weeks after closing. 🤦♀️ So grateful that we were fully insured and can rebuilt something even better than what we had before. Better use of space (there will actually be enough room for all guests to sit TOGETHER at a dining table 🤯) while gaining another bedroom and bathroom. Also making it wheelchair accessible, which is SO much more inclusive, and will set our place apart from much of what I saw while shopping this market. It’s a long road ahead, but we’re excited about the opportunity that has come out of this loss.
🌞
Ever inspired by your content. Thank you, thank you, thank you!
✨
A couple of my cabins were very close to that fire as well. I am sorry to hear about your loss. Glad the insurance was up to date! Cant stress how important that is enough.
I thought Brandon Turner mentioned in his book statically 3-bedroom 2 bath homes have more success for finding tenants. Are bigger homes necessarily better?
There is not always a golden rule in all of real estate. Real estate is very location specific. For long term rentals, typically the 3/2 model has yielded the best results. But I have seen with my STRs that the more unique the property, and the more people you can fit, the better my yields have been. By no means the only way to do it though!
Awesome video guys. Turning one of my properties into short term as well. This is great advice
How are you acquiring these properties? 6 bedrooms is insanely expensive in good neighborhood.
Typically 20-25% down investor loans through our mortgage brokerage!
How much would you pay for a short term rental.
It all depends on the projections! I usually buy in the 600-1M price range in the markets I am active in.
Where are you finding profit generating short term rentals?
Get a Relator that’s a Pro at STR( owns STR and manages them )
I personally am buying in TN and FL at the moment.
Thanks for a the awesome podcast guys! I am a new investor and really appreciate all the knowledge drop!!
What about the zoning of the property, single family or commercial?
Mine are all single family!
Definitely useful points. Thank you guys!
LOVED THIS!
What about gyms? Is that an addition giests value?
I do not personally have any with Gyms, but I like that idea. I would however consider the liability of injury, especially to children if large weights or machines are available.
Did this turn into the Slumlord Channel when I wasn't looking?
Love your videos sir it teaches me a lot ❤
Good video, though I am not quite there. Would love to get a Airbnb in gatlinburg. Also you mentioned Dollywood. We've been to pigeon forge three of the last 4 years and never once thought of going to dollywood. LOL so much more to do for the kids there
I was just there last month. There is so much to do!
This shows how to chase money and not show any regards for the residents of the town in wich he owns property.
I personally send each of my neighbors gifts the moment I buy an airbnb and give them my direct contact in case there is ever a noise complaint or a parking issue. My neighbors experience is very directly built into my airbnb model and should definitely not be taken lightly!
@@christianbachelder8608 Good for you. I'm sure buying gifts for the neighbors of your short term rentals makes all the difference in the world. I have a vacation home on the Oregon coast that I've owned for almost 20yrs. I can speak with experience with STRs. I've had SRT next door, behind me and now I'm going to have another next door to me. You and your ilk are conducting a hotel business in neighborhoods where they don't belong. That's why towns are starting to regulate them. Your gifts don't mean crap to a residents quality of life that your STR affects.
@@jimmyj422 Great feedback and I appreciate your opinion, so dont take this as confrontational. The area here we were specifically referenced is the smoky mountains where cabins are few and far between, and where the majority of properties in the area are also vacation rentals. I definitely wouldnt purchase a 6 bedroom at the end of a residential street and turn it into a hotel. When I was discuss my gameplan with neighbors, that is when I STR the 3 bedroom and limit occupancy to 6 or 7 guests per stay. Obviously, this advise is market dependent. Please dont interpret this as what I am saying to do any any neighborhood in America. Sounds like you have also found a way to be very successful in your own pursuits!
@@christianbachelder8608 The town my vacation home is in has a population of about 1200
It has over 300 STRs. I've seen how the proliferation of STRs has changed the complexion of the town. It has been turned into a transient town with less affordable places for locals to live.
@@jimmyj422 I can understand your point and frustration. At some point certain markets will become over saturated and things will correct themselves. The lower performing STR’s will be sold and homes will become available again to families who actually want to live in them. I certainly wouldn’t invest in an STR that has too much competition. I also wouldn’t choose to live in a touristy area either unless my job required it.
7:20
First