Once under contract, we schedule our inspector for the end of the 10 days and we pre-inspect the property and the area. We also determine whether we need other specific inspectors for the foundation, roof, mechanical and electrical systems, drain, or well and septic. If so, we schedule them during the inspection period. We can also move on from a property quickly if it does not pass pre-inspection, saving everyone valuable time. The goal of the inspection is obviously to do a thorough job and to learn what we are dealing with. It also allows us to negotiate a second price reduction for anything we find. Many times, we can get two price
reductions for our clients and a great deal for them to be able to start their STR business. A few tips on buying well: FURNISHINGS. If furnished
already, ask for the furnishings to be included at no cost. Sellers commonly accept this request. NEIGHBORS. Always talk to the neighbors to get a feel for the area. Find out whether other STRs are operating nearby and whether neighbors are accepting of the situation. You can also learn what property management practices to avoid to keep neighbor relations good. PRIMARY RESIDENCE? Check whether the property was a primary residence or bought a while ago. Either situation or both will have the property taxes “pop up” on you in Michigan, and you must factor that into your all-in mortgage payment. LOCAL GOVERNMENT OUTREACH. Verify whether STRs are allowed in the area by talking to the local governing
... Our initial offer is always below asking price and below market value. The goal is to find a motivated seller. To do this, you make a verbal offer to gauge their level of motivation.”
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