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Cincinnati, Ohio

The Queen City Remains One of the Fastest-Selling Markets in the Country By Carole VanSickle Ellis When a multitude of large, urban markets began cooling off with the advent of 2023, Cincinnati, Ohio, just kept getting hotter. The midwestern city, also often referred to as “The Queen City” thanks to poet Henry Wadsworth Longfellow’s 1854 poetic reference to it as “The Queen of the West,” was ranked as one of the Realtor.com’s “most improved large markets” at the outset of this year thanks to the eternally magic combination of affordability and relative availability of housing. Of course, with most large, urban markets — including Cincinnati — battling to create new inventory, the city could not have ranked so well if it were not for the extended metro area, which boasts three of Ohio’s most affordable places to live according to a recently published report from SmartAsset and reaches into multiple neighboring states. “We measured the total cost of owning a home (using the average home cost) …throughout a five-year period, [and] that five-year cost was then measured as a proportion of median household income…to determine affordability,” explained the SmartAsset team. The group also factored in closing costs, real estate taxes, homeowner’s insurance, and mortgage rates. They determined that three of Greater Cincinnati’s neighborhoods — Delhi Hills, Northbrook, and North College Hill — all fit the bill for relative affordability in the area at this time. “That does not necessarily mean there is a ton of home stock out there,” warned City Beat contributor Katherine Barrier. She noted that rising mortgage rates and ongoing inventory issues prevent nearly all markets from offering access to a high volume of truly affordable homes. For investors active in the Cincinnati area, the strength of the local economy likely outweighs concerns about affordability. Not only does Cincinnati boast the fastest-growing economy in the Midwest, but the Cincinnati Regional Chamber of Commerce projects that the region will produce more than 1 million jobs over the next decade with “considerable growth in high-paying jobs that demand a bachelor’s degree or higher.” This trend will likely mean that buyers and renters coming into the market looking for housing will be working with acquisition budgets that exceed local affordability benchmarks. The chamber highlighted “skilled trades” and “information technology” as two sectors presenting “immediate pathways to higher-paying jobs,” and predicted nursing, software development, food preparation/service, and home health aides would see the most growth over the next decade. According to local professionals, there is still plenty of competition for Cincinnati properties, and it is only getting more intense. “Buyers who put off house hunting in the second half of 2022 are already gearing up to find the perfect home in 2023,” observed local broker/owner Brett Keppler in his report on the local area at the end of 2022. “Even with record-low inventory, life still moves on.” He noted that the volume of homes sold in the Cincinnati area in 2022 dropped by 12% year-over-year, but added, “Average sales price in Greater Cincinnati still increased by over 7%.” This contributed to record-low days on market in the city, a trend which continued through Q1 2023. A Growing Population for a Complicated Job Market Thanks to ongoing difficulties accessing inventory for sale, many members of Greater Cincinnati’s current 2.5 million-plus population find themselves compelled to settle for renting even if they ultimately plan to own their own homes. With the expectation that the local jobs market will add nearly 68,000 jobs in the next five years alone, rental property investors will find plenty of residents easily able to afford market rents in desirable locations. The key to attracting these residents lies in offering them the types of properties they find attractive. This means, in many cases, offering single-family residential options that look and feel like home in markets where most of the alternatives are located in multifamily developments. RENTCafe analyst Nadia Balint observed that in Cincinnati, like many other midwestern markets, builders are doing “a pretty good job” of keeping up with the demand for family-size units in multifamily buildings. However, the demand for single-family residences remains strong both in the retail buying and rental market. In Cincinnati, less than two-thirds of all apartment units are “family-sized,” creating opportunities for investors with an eye toward single-family rentals (SFRs) or multifamily development. The city has prioritized creating an environment designed to attract high-paying employers in the IT sector to the area, working in partnership with the regional chamber of commerce and local IT advocacy groups to sponsor programs to help current residents “reskill” in IT specialties in the wake of the COVID 19 pandemic and to lure new IT employees to the area. These programs feed growing local demand for new hires in the sector. Employers can sponsor internships and training programs, while educational institutions and government agencies can access “pipelines” of IT specialists as well. Both Ohio and Kentucky participate in these drivers, and the area is one of the most cost-friendly regions in the country when it comes to starting or supporting any type of business. In Greater Cincinnati today, these efforts extend beyond IT and into the sectors of biohealth, business and professional services, advanced manufacturing, and general technology. The region is “one of the best ecosystems for manufacturers to thrive and grow,” boasted JobsOhio, citing proximity to the Ports of Cincinnati and Northern Kentucky, previously known as the Port of Cincinnati, and the Ohio River waterway as a primary draw for all types of manufacturers from aerospace to automotive to “foods and flavoring.” At present, the Cincinnati Tri-State area boasts ongoing projects like Nestlé-Purina’s $550-million investment in its first new production facility built from the ground up since the 1970s (the largest project in the Midwest in 2020), and hygiene, infection protection, and cleaning solutions manufacturer Diversey’s $86-million production and logistics facility, which brought 300 new jobs to the area in 2021 alone. Although the rising population and growing influx of businesses is making it difficult to access

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In Search of the American Dream

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Take Action and Find Good Leaders As an independent business owner with HomeVestors® of America, Inc., Vee Le has achieved enviable success in the real estate investment industry. In just nine short years, Vee has already accomplished more than most other real estate investors accomplish in their entire career. She has purchased 250 properties in this short time and is the owner of a property management company. And she’s not done, yet. The Prelude In 1995, at the age of 15, Vee Le and her family immigrated to the United States from Vietnam and settled in Houston, Texas. After graduating from high school, she attended the University of Houston where she earned her Bachelor of Science in Computer Science in 2005. Upon graduating from college, she worked at both a full-time job and a part-time job until her mother bought a nail salon business and told Vee to manage it. Vee successfully ran the family business for ten years, starting in Colorado and then expanding into Texas. As Vee pointed out, “I ran that business for 10 years, 24/7, when I realized I needed something different to do in my life.” Enter real estate. In 2014 Vee discovered the HomeVestors franchise opportunity. With zero real estate experience, she took a chance and bought a franchise in the Houston area. For the next three months, Vee was establishing her real estate business while still managing the family business before turning it over to a sibling. Now it was real estate full-time. The Venture into Real Estate Having bought her HomeVestors franchise mid-year in 2014, Vee bought 15 homes in her first half-year of business. With no real estate experience, she followed the HomeVestors systems down to the letter and relied on the advice of her Development Agent. In 2015, her real estate business began growing exponentially and today she continues to buy 25-30 homes each year focusing on fix-and-flips, buy-and-holds and short-term rentals. Her current focus is on growing her team, which now consists of 10 employees, and growing her short-term rental portfolio. And she is now herself a Development Agent for the Houston and Corpus Christi markets helping new HomeVestors franchisees build successful operations and buy and sell residential properties. Vee has diversified her short-term rental portfolio to include two distinct markets: Houston, which is an urban market, and Galveston, which is a destination market. This strategy offers a well-balanced mix of options that can cater to a variety of travelers including corporate travelers and vacationers. While short-term rentals are very competitive, Vee says that short-term rentals are her favorite investments, as they combine both real estate rental skills and hospitality skills. Present Day While owning a large portfolio is one of her key strategies for building long-term wealth through real estate investing, Vee has also expanded into other real estate related ventures. Vee founded Buzz Vacation Rentals in 2020 to help other investors manage their most expensive assets, their second homes. Buzz Vacation Rentals is a premier property management company for short-term and vacation rentals in Houston and Galveston. In 2018, Vee started a community of real estate investors who are thriving to operate at a high level. Its mission is to connect like-minded individuals with a common goal of financial freedom. It is all about deal-making, growing a rental portfolio, and supporting each other. “I want to help people and provide positivity and inspiration…it is my way of giving back,” Vee said.  Advice from an Expert “It is important to understand that real estate is not about the house, it is about people. We help people get out of their ‘ugly’ real estate situations,” said Vee. She continued, “My best advice to anybody is to take action, find good systems, and find good leaders.” Homevestors What exactly does it mean to be a HomeVestors® business owner? Owning a real estate business is life changing and naturally comes with risks! When you become a HomeVestors business owner, you get immediate access to motivated seller leads, financing resources for qualifying purchases and repairs, one-on-one coaching with your local Development Agent, proprietary software for analyzing properties and deals, and access to a nationwide network of coaches and peers. Your house-buying business is yours and you run it as your own venture with a focus toward your individual business goals. If you are interested in a franchise, call 866-249-6932, email Sales@homevestorsfranchise.com or visit www.homevestorsfranchise.com. Each franchise office is independently owned and operated.

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National Private Lenders Conference Makes Waves

The Rebranded Conference Made a Splash in Key Biscayne, Florida By Carole VanSickle Ellis Last month, a private-lending industry tradition went through an exciting evolution, making waves at one of the biggest conferences for private lenders in the country. On March 27, 2023, the first Pitbull Conference of 2023 started out with the announcement that new ownership would be renaming and repurposing the 21-year-old event. The Pitbull conference will move forward as the National Private Lenders Conference, and will continue to have three events yearly, with the second two of 2023 being hosted in Atlantic City, New Jersey; and Austin, Texas, respectively.  Jon Hornik, CEO of the National Private Lenders Conference and a founding member of the National Private Lenders Association (NPLA) as well as its executive director and general counsel, said of the change, “We are moving [the Pitbull Conference] forward with a new name, The National Private Lenders Conference, as of Monday, March 27, 2023. With this change, we hope to attract more institutional participants into this space as well as increasing collaboration and growth among our members and within the industry.” Amy Kame, who serves as managing director for the National Private Lenders Association (NPLA), said the association is excited to bring its mission of supporting, protecting, and growing the private lending industry to bear in the National Private Lenders Conference. “What we’re trying to do is bring the foundation from NPLA to the conference.” “This organization is about how to go to the next level,” said NPLA founding member and Advisory Council member, Chip Cummings, CEO at Northwind Financial and the author of nine best-selling books. “I learn every day from this organization. The mindpower here can solve any problem in this industry.” Cory Nemoto, a principal at KÉCŌ Capital, LLC and NPLA founding member attending the event, added that his company gives much of the credit for its pandemic survival to NPLA education, networking, and communications. KÉCŌ Capital was founded shortly before the advent of the global COVID-19 pandemic. “We would not have made it through without the NPLA,” Nemoto said. “We faced many trials as an industry, and one thing that is consistent is our friends and colleagues in NPLA have been there through it all.” New Educational Elements and Networking Opportunities Jeff Tennyson, an NPLA founding member and president and CEO of Lima One, said, “Private lenders have an important, noble purpose of ultimately helping build communities, and we look forward to continuing to work with the National Private Lenders Conference to grow and build our industry, provide new ideas, and bring in the NPLA’s insights, best practices, and legislative ‘heft’ to help put a spotlight on laws that affect private lenders, real estate investors, and the end users of housing.” The conference featured presentations from John Burns Real Estate Consulting chief demographer Chris Porter and a keynote from Harry Markopolos, the forensic accounting and financial fraud investigator who uncovered evidence of the Bernie Madoff Ponzi Scheme as nearly a decade before Madoff was revealed as a fraud. The agenda also featured panel discussions on advancing your lending platform, key indicators to watch in a changing real estate market, and how inflation, interest rates, and global volatility impact the private lending industry. The event also featured multiple exhibit halls and breakout networking opportunities. The National Private Lenders Conference this March featured a number of new elements, including more than four hours of designated networking time spread across two days. “That way, no one has to feel pressure to skip the education in order to get in the networking,” Hornik explained. “We are so proud to be here, in this space, providing this education and these opportunities for private lenders around the country,” he concluded. “We are meeting in strong markets where we will attract local talent as well as national attendance, and we are excited to bring this mission to the conference and the industry.” Learn more about the National Private Lenders Conference at NPLAConference.com. If you are interested in joining NPLA, visit NPLAOnline.com.

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What Silicon Valley Bank’s Collapse Could Mean for Private Money

In a Global Economy, Every Financial “Ripple” Matters By Carole VanSickle Ellis In early March 2023, Silicon Valley Bank (SVB), a major bank in Silicon Valley that had made its name catering to venture-backed tech startups, was taken over by federal regulators. The SVB collapse was the start of the second-biggest bank failure in history and was instigated by a run on deposits after the institution announced it had sold roughly $21 billion in securities and subsequently sustained losses totaling nearly $2 billion in the first quarter of 2023. While $2 billion might seem insignificant compared to the bank’s $209 billion total assets as of December 31, 2022, the sale and losses sparked trepidation among investors and depositors at SVB, resulting in customer withdrawals of $42 billion, about a quarter of the bank’s entire deposits, in a single day. At close of business the next day, Thursday, March 9, 2023, SVB’s stock had fallen 60%, shareholders had lost more than $80 billion, and clients were reporting delays in requested transfers to other institutions. Although some analysts said in retrospect there were signs of potential trouble at the institution, public appearances essentially indicated that the bank was in sound financial condition Wednesday, March 8, 2023, and insolvent the following day. The Fallout Not surprisingly, SVB’s struggles affected the entire banking and finance sector, with Bank of America, Wells Fargo, Citigroup, and JPMorgan Chase all losing substantially before stabilizing and then gaining ground as customers and clients at smaller banks pulled assets from those companies to deposit them at larger institutions. This shift was fueled in part by the perception that larger banks would be at less risk of failure than “smaller” ones like SVB, which was the 16th-largest bank in the country when measured by deposits, and in the interest of diversifying assets so that larger volumes of capital would be insured by FDIC coverage, which is typically limited to $250,000. Many of SVB’s clients had large amounts of capital that were uninsured at SVB; in fact, at the end of 2022, SVB held $150 billion in uninsured assets. Regional bank stocks crashed nearly across-the-board as customers reacted to fears that smaller banks might “run out of money” in the event of a run. Interestingly, “neo-banks,” also sometimes referred to as “challenger banks,” benefited from an influx of funds in the wake of the SVB meltdown. As start-ups raced to diversify their holdings and rescue what they could from the uncertain fallout, neo-bank Mercury snagged 20% of new-account openings over the weekend following SVB’s turmoil. Neo-banks are fintech platforms that offer a variety of options to streamline mobile and online banking, including apps, software, and other web-based technologies. They tend to specialize in one financial product, such as checking accounts or savings accounts, and are often viewed as digital disruptors because although they may partner with a “megabank” to insure deposits and products, their entry into the financial space has been compared to Airbnb’s effects on the hospitality industry or Uber’s impact on transportation. Will the Ripples Reach the Private Money Sector? So far, most private lenders and private loan brokers are cautiously waiting to see what fallout, if any, will reach the private money sector in the wake of SVB’s meltdown, the subsequent collapse of Signature Bank, the federal bailout of SVB customers, and a concerted effort from mega-banks to shore up confidence in spiraling First Republic Bank by making $5 billion in deposits to demonstrate faith in the San Francisco-based operation. “It is interesting how history repeats itself,” observed Mike Tedesco, CEO of Appraisal Nation, a national appraisal-management company based in Raleigh, North Carolina. Tedesco noted that after the housing crash of the mid-2000s, federal legislators passed tighter regulations on lending to prevent a repeat event. However, he said if it appears the fallout from SVB is subsiding, regulators might elect to back off, particularly given current Federal Reserve policies that necessitate ongoing interest hikes. “If [policy makers] feel they have nipped this in the bud, then they may wait [on stricter legislation], but if a few more banks fail, it is absolutely coming,” he said. Ben Fertig, president at business-purpose lender Constructive Capital, said that from his perspective, the bigger issue with the entire SVB saga is that it has the potential to change how lenders, borrowers, banks, and customers, think about credit, lending, and finance. “Even though the depositors were [ultimately] protected, the equity structure for banks could dramatically change. As new stakeholders make decisions, the credit philosophy of those [bailed-out] banks could be much different than it was before. If this extends outward, to regional banks, for example, you could see certain types of financing that could become harder to come by.” Fertig noted that this could have a temporary, positive effect on private lenders able to meet financing needs previously handled mainly by conventional bank loans, but said in the long run the change would be “net negative” for the financing sector. “I think the credit availability is the most important,” he said. Lily Fang, dean of research and professor of finance at INSEAD’s Fontainebleau campus, warned that the impact of the SVB collapse on the tech ecosystem has yet to fully manifest. In a breakdown of events published on March 23, 2023, Fang wrote, “SVB was an important player in the tech ecosystem and the main banker for tech start-ups — taking deposits and making loans. We have already been in a tech winter for a year, and the unravelling of SVB will simply deepen that winter.” SVB has placed the interconnectivity of the global economy on display in a new light, with the shock waves of what should have been a relatively minor misstep affecting just one institution rippling outward to maim and cripple other international players, like Swiss lender Credit Suisse. While Credit Suisse was already floundering thanks to years of scandals, management changes, and financial losses, the final sale of the bank to competitor UBS was spurred by fears spreading

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Warren Ifergane, CEO, ICG10 Capital, LLC

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A Conversation About the Economy, Lending and the Real Estate Industry Warren Ifergane is the CEO of ICG10 Capital LLC, a private lending company focusing on financing for fix-and-flips, new construction, and long-term rental properties. Currently lending in 44 states, they are very active in secondary cities such as Jacksonville, FL, Kansas City, MO, and Atlanta, GA. With headquarters in Miami, FL, ICG10 funded $250MM in loans in 2022. REI INK sat down with Ifergane to get his thoughts on the current state of the economy and the real estate investment industry, in general. Warren, to start with, how about a little background. You were born in Paris, France and moved to the United States when you were seven years old and settled in Miami. Can you give a quick overview of your professional journey? Eleven years ago, I started as a part-time teller at Bank of America making around $800 per month. I was renting this studio apartment for $600/month after being kicked out from my “father’s” house for no other reason than his wife didn’t like me. I had no money and not even enough income to change the bedsheets that came with the place. The room had no windows and no light and was basically a direct reflection of my life at that point in time. And it was not a safe environment. After several jobs, I eventually landed a position as a private equity analyst. During that time, I also earned my MBA at Indiana University. Within five years, I was the Executive Director at that hedge fund company managing over $1B in distressed loans and making portfolio management decisions. After that, I started my own lending company, ICG10, and worked 12-16 hours every day to build the business to where it is today. A question on everybody’s mind is the state of the economy. We have inflation, rising interest rates, a proxy war in Europe, a tremendous national debt and most recently a few bank collapses. What is your take on the economy and how it may impact the real estate investment industry? Regarding real estate, it is a challenging time for anyone who is involved in real estate on a volume basis, specifically lenders, title companies, realtors, home inspectors, appraisers, etc. But with any challenge, there is the opportunity to get some substantial discounts on properties that have been sitting on the market. Very importantly, there is a slow-down in transactions as a consequence of supply and demand. Obviously, the Fed raising rates makes it particularly difficult for borrowers to purchase at affordable levels, especially since home prices have not adjusted that much relative to interest rates. But what many people don’t talk about are the ramifications of having near-zero interest rates the last few years. Approximately 85% of home owners have mortgages below 6% which evidently cripples refinances, but it also does not provide any incentives for current homeowners to list their homes. This basically shut down the “move up” buyers because they would face higher interest rates and higher purchase prices at the same time, which usually isn’t worth it when they are comparing a new home to what they currently own. In terms of finance and lending, lower transactions are affecting everyone in the space. With that said, banks have been curtailing back even further than the private lending space. So far, the private lending space has been resilient and is really functioning pretty well at fulfilling its major function, which is providing liquidity to “unbankable” or “bankable” but “hurried” customers looking for high leverage. And the recent bank collapses? It’s clear our financial system is not designed to withstand the pace of rate hikes we have seen thus far from the Fed. If you’re looking for the immediate reason of the SVB failure, it’s simply because cost of capital and risk-profiles have changed due to these rate increases, crushing valuations on young startups and even treasuries. A deal that seemed to make sense given a certain amount of risk a year ago does not make sense now. The Fed’s blunt tool is just that, extremely blunt. And SVB made the cardinal sin of mismatching durations (taking short term deposits from customers and investing them at less than 2% on 10-year treasuries. Right now, we’re not sure of the extent, but I suspect the Fed broke something and a pivot will be in play shortly. This may present buying opportunities if things don’t get too much worse. But the Fed still needs to cut rates to avoid a contagion. I personally wouldn’t keep my money in any regional bank as the risk is too high to earn cheap saving returns. If you’re going to keep cash, diversify it in some of the major banks that still pay yields. But all in all, I think this situation may end up being a good thing for real estate down the road. Your company had an excellent 2022 with $250MM in loans. What are your current thoughts on various strategies, fix-and flip vs buy-and-hold vs short-term rentals? Everyone has different strategies and personalities. Each one of them can make you massive amounts of money if scaled correctly. So that’s where we try to come in. I had one borrower who had never done a loan in his life. He met me and I convinced him the best course of action was for him to leverage and scale. Within a couple years, he acquired over 40 rental properties and increased his net worth by 2-3 million dollars, each of them cash flowing very well. That’s what I aim to do: provide access to capital so others can be successful. At the same time, I have clients that do Airbnb and are crushing it. Most investors buy properties that need renovation, and they fix them up specifically to target the Airbnb clientele. And I’ve also seen “pure” flippers that make even more money. We have one client who did over 50 flips with us in

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Flooring is a Vital Part of a Wise Property Investment

LVT is the Superior Choice for Short-Term Rental Flooring By Fred Harris Short-term rentals are a great investment in 2023, but a wise investment must be backed up with wise expenditures. Smart spending goes a long way to help overcome some of the challenges you may face with short-term rental investments. Flooring is one of the most important expenditures you will need to make, and here is what you need to know to choose the right one. The Factors In order to make a wise flooring choice, there are several factors that you have to remember. Materials Cost When choosing flooring, it is easy to spend much more than you need to. Floorings can vary greatly in cost, often with little visible or functional difference. Beauty Regarding style, you may be tempted to think that flooring does not matter, but remember that flooring spans an entire space. Tenants will see a stylish space and feel they are getting good value for their money. This means higher rent and better returns. Longevity The lifespan of flooring ranges from three years to a lifetime. The five main factors of floor longevity are scratch resistance, water resistance, durability, cleanability, and whether the environment is commercial or residential. Ease of Installation and Repair If you’re doing all the labor yourself, you’ll need to pick flooring that is easy to install and repair. Some floorings will require skilled labor to install or fix. When contracting, choosing flooring that is quick, easy, and affordable to work with will keep your costs down and properties occupied. On the topic of repairs, the repair needed for damage done by pets in a rental unit is often overestimated. You will make your listing more attractive with a pet-friendly policy. Sound Reduction Noise complaints can be a serious issue. Floorings with built-in sound reduction and sound-reducing underlayments can solve the problem without expensive assembly reconstruction. Make sure to look for a flooring’s HIIC score to see how much sound reduction it will provide between floors. For those unfamiliar, HIIC is the new standard replacing the IIC method of sound-reduction measurement. If the manufacturer can only provide IIC scores and cannot provide an HIIC score, they are behind the times. The Options Make your flooring of choice a wise expenditure. Here are your options. Luxury Vinyl Tile/Plank Luxury vinyl flooring (also known as LVT or LVP) is the best option for durable and completely waterproof flooring with affordability in mind. LVT is so easy it can be installed by almost anyone, not just professionals. There are several kinds of LVT flooring to fit any need. LVT can feature polyurethane wear layers of up to 28 mil as well as microscopic ceramic-bead integration for further damage deflection. Choosing the right wear-layer thickness is key to a long-lasting floor in both residential and commercial environments. If you desire the cushion, sound reduction, and heat insulation that carpet provides, a good, thick underlayment can provide all of those benefits as well as moisture protection. If you are using floating floors, make sure the manufacturer specifies that the underlayment will not compromise the flooring’s clips. Looselay LVT is a great option for residential rental spaces because it is extremely easy to replace single planks. LVT can take a beating, but if a looselay plank becomes damaged, replacement is quick, cheap, and does not need to be done by a professional. Carpet Carpet is on the opposite side of durable, rental-friendly, and DIY flooring. It is undoubtedly the most easily damaged and stained. Carpets may loosen over time, requiring the expense of stretching. Carpet can be a challenge to clean thoroughly, and even when it appears clean, it may be trapping allergy-inducing dust, dander, pests, and more. Carpets have also been known to off-gas harmful VOCs. Finally, carpet tends to have a lifespan of about five to seven years. Tile Tile made from stone, porcelain, or ceramic is a beautiful, durable, and waterproof option for short-term rental flooring. It definitely adds value to a property, but the high cost may be a problem for large projects. Tile can be uncomfortably cold and hard for people and pets alike. Tile is also a poor choice for sound reduction. Tile requires technical skills and experience to install and may be easily damaged. While damaged tiles can be replaced, it is a costly, dirty, destructive, and time-consuming process. Cork The main selling points of cork flooring are natural cushion, sound reduction, and sustainability. However, it is susceptible to scratches, dents, and moisture damage. Laminate Laminate is meant to closely resemble hardwood flooring and is a close competitor to LVT, but it fails to match up with regard to water resistance. This may be a big problem in vacation spots where tenants often return from a swimming pool or a snowy slope. Hardwood Although beautiful, solid hardwood is one of the most expensive flooring options for rentals. It can absorb liquid, resulting in permanent warping and stains. Depending on the kind of wood and finish, solid hardwood may also be very easy to damage. Support animals and pets can be a real danger to solid hardwood flooring. Solid hardwood is also one of the worst options for sound reduction. Engineered hardwood is an alternative that still suffers from similar problems to solid hardwood, just less so. Bamboo Bamboo flooring is similar to solid hardwood flooring, but when made properly, it is generally more durable and water resistant. As sustainable flooring options go, bamboo is a decent one, but its vulnerability to moisture and scratches, poor sound reduction, and high cost make it less than ideal for short-term rentals. The Best Option LVT is the superior choice for short-term rental flooring. No other flooring comes close to providing the overall form and function that LVT does while still remaining affordable to install and replace. Your short-term rental investment will succeed if you make all your expenditures with this kind of care and consideration.

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