Cash Pad - General Discussion

[Sir RaiderDuck OMS]

Quote

Former stars of “The Bachelorette” and serious house flippers, JoJo Fletcher and Jordan Rodgers, partner with homeowners hoping to turn their properties into ideal short-term rentals. JoJo and Jordan will transform these ordinary spaces with unrealized potential into profitable vacation-rental hot spots.

https://www.cnbc.com/cash-pad/

[Sir RaiderDuck OMS]

Saw one ep so far. The deal proposed is not one I'd take: Jordan and JoJo renovate your spare building (in this case, a shipping container) into an Airbnb property, pay for the improvements and all maintenance themselves, and guarantee you $700/month for the next four years, but they keep all revenues above and beyond that until the agreement expires.

Two issues with the arrangement:

1) They're guaranteeing you basically two or three days' rent per month. Assuming it's even rented half the time, they're keeping 90% or more for themselves. I realize the owner is assuming no financial risk, but it's still weighted VERY heavily in JoJo and Jordan's favor.

2) Presumably, J & J will be in charge of renting it out, which means you have zero control over who's gaining access to your property, your driveway and yard, etc.

[seacliffsal]

I also thought that after the four years, when JoJo and Jordan "give" it back to the owners, that's probably when everything would have to redone in order to keep it a viable rental option.  There's more to the finances, but the owners of the properties seem to be pleased to get the $700 a month.  Whose responsibility are the utilities?  I also wonder about the zoning of these residential areas (for the short-term rentals).  I don't necessarily like all of the designs.

I'm hoping someone who understands this market will comment and enlighten me.  I really am curious about this and especially the deal that JoJo and Jordan offer the owners.

[jumper sage]

You all have great questions.  I just know I like the idea of it.  I am enjoying the show.  Finally a couple of Bachelor/Bachelorette Nation people who parlayed their air time into a viable show/business.

[GoGamecox]

Did anyone see the episode with the warehouse that got fitted with 4 queen "bunk" beds?  Might be something you think it awesome as a kid but as a chick in her late 40s, I immediately thought about feeling constrained in those spaces, trying to push my boyfriend aside to get out and hit the bathroom in the middle of the night, hearing other people snore, etc. Not my thing, but the college kids may be feeling it. Looked like it would be a pain to change the fitted sheets on those.

[MartyQui]

And they didn’t mention AC in that warehouse...a metal building in Dallas in the summer would be horrible without HVAC.  I agree that the financial model seems really weighted toward the renovators.  I’ve looked at the Airbnb listings, and it seems like their rental estimates are really inflated.

[seacliffsal]

I was just in disbelief about the warehouse in Dallas.  They wanted to sleep 8 to 10?  What adults want to sleep four to a bed in a bunkbed alone with three other bunkbeds?  Even as a kid I wouldn't want to sleep 2 to a bunkbed (my sister and I had bunkbeds) as the interior person would have difficulty getting out whether on the bottom bunk or the top bunk.  They were so proud of themselves for creating a rental that would sleep 10 and I was like, so make more than two bedrooms.  They even stated how proud they were of their creativity to create queen bunkbeds as they had never seen them before.  For which there is a reason.  I wonder how often they really do rent out that warehouse.  I did really like the owner-it seemed that he had had a rough time and his joy just touched my heart.  That, however, did not override my disbelief about the four bunkbeds in one room.  Kids, maybe, but adults-just no for that many people in those bunk beds.

Anyone have any updates on this?  

[Sir RaiderDuck OMS]

Looks like the Dallas warehouse is only going for $300/night instead of the $425 Jordan and JoJo figured, but it's pretty well booked.
 

https://www.airbnb.com/rooms/32420012

[seacliffsal]

Thanks for the follow-up information.  I must admit I was surprised with the all 5 star ratings and positive reviews.  I know I'm old, but I just never thought that 8 adults would want to sleep in queen bunk beds, 4 in a room.  Well, this shows that JoJo and Jordan do know what they're doing.  I look forward to hearing more about some of the other renovations/rentals they did during the season.