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I bought my first house to AirBnB last Fall and it's been hemorrhaging money ever since. What am I doing wrong?

hosting
#133

Because then you would not get as many low guest number bookings.

1 Like
#135

So price it in such a way that you wouldn’t loose too many bookings. Surely $20 a night couldn’t turn anyone away. I suspect if you do $20 you might loose a tiny amount of bookings which might bring you closer to that 75% occupancy rate, however your revenue would be a lot higher in return.

1 Like
#137

I have never seen the per night price in bold followed by the total price for the booking before. Interesting.

#139

I don’t think your reasoning is accurate here. I feel it is to make it more transparent to the guest what they will pay. The cleaning fee is averaged across the per night fee listed, as is any discount and the service fee too, I think. That per night price shown is not just the listing price for those nights.

#140

I think that something else could backfire on you.

You clearly bought this with an owner.occupied loan, since no mortgage company would have offered a 5% down investment loan. So, this is considered mortgage fraud.

That also means that you have owner.occupied insurance. What do you think will happen, if anything happens that requires insurance to get involved? The minute they see that it’s not owner.occupied, but str, they will refuse to cover. And if your mortgage company finds out that you’re not living in the property…and never intended to, as you mentioned here…well, they could also come after you.

2 Likes
#141

I also wondered about the mortgage and insurance. The last time I got a loan (6 years ago), a 95% LTV on an investment property was not an option anywhere, but maybe things have changed.

#142

If bought with govt backed loan, it is illegal to use for STR, as clearly stated in the documentation signed

#143

Bryan, I’m a real estate investor and I’m up on mortgages…5% down is only possible for owner occupant loans.

#144

@Liface2 - I’m sorry that people here have chased you off - I see that you have removed all of your posts. Most of us are trying to answer your question and be helpful, but not everyone is as sensitive in their answer as we’d like them to be.
When I first started posting on forums, I almost quit, too, when some people disagreed with me and were sharp and unkind about it. But then I realized - they don’t know me, I don’t know them, and I would be losing out on the good advice from the rest of the community. So now I just ignore those posters that are confrontational in their responses, and refuse to let them start an argument with me.

3 Likes
#145

I believe he said he will be living in it part time but I guess you chased him off.

#146

Well, we’ll never know now.

It’s possible that he realised that he had been saying a bit too much on what is a public forum that anyone in the world can read. The thread wasn’t getting anywhere anyway. I was about to close and unlist it so I might as well now…

#147

My guess is that he wasn’t chased off by insensitive posters, he was spooked by the idea that this is a public forum on which he’s posted his listing and private info and now both his mortgage company and insurance company have access to it.

3 Likes
#148

98% of investor AirBNBs around here have:

  • fraudulent primary occupant loans
  • fraudulent (federal crime for the FBI to handle) VA loans
  • fraudulent mortgages declaration the residence is a second home (only)
  • fraudulent declaration of primary residence for lower state/local property tax
  • most or almost all of these

The cherry on the top is the investor who declares two of her three properties as her “primary residence” and they are about a mile apart.

It’s like shooting fish in a barrel to find this fraud, it’s amazing to find a somewhat honest investor. I know of one or maybe two out of the hundred or so I’ve looked at.

#149

I didn’t even know that was possible anywhere.

#150

Right??? You would think gov’t software would at LEAST screen for that.

P.S. The fraudulent VA loans are pretty despicable IMO. It’s clear that the defense contracting industry in N. Va. and locally is sharing tips somewhere on a closed forum to buy something here in Baltimore with your VA loan and put it straight into service as an AirBNB.

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