Rental Property Investor · Salt Lake City, UT · Member since 2020 · 51 posts · 32 votes
Anyone in Montana or familiar with White Fish market? I am interested in possibly joining a partner for a Air BNB, and am curious to hear other peoples experiences or advice on that market. Would love to get in contact with a realtor in that area.
@Manuel Koschnieder BRRRR is possible in the area, but our inventory is at historic lows, more folks are moving here from out of state, which in turn drives up prices even for the distressed properties, leaving returns smaller. Rents have also been increasing along with the home appreciation but not at exactly the same rate. Still there is increased demand for housing, both renters and buyers, in the area.
Single family homes can be hard to complete the BRRRR strategy with, but is still possible. I have found that with small multi-family (2-4 units) the returns tend to be a little better. When I'm looking at returns anything from 6-8% initial cash on cash return is a viable option to pursue further analysis on in the area. Not great, but pickings are slim.
@Alyssa McEwan the Whitefish VRBO market saw a huge downturn during the beginning of the COVID-19 crisis, as I'm sure most areas did. From mid March to mid May a lot of the short term rentals were cancelled in the area. Also the city of Whitefish passed an emergency ordinance that did not allow any short term rentals or even motel/hotel rentals to "non-essential" travelers. This applied to properties within city limits and lasted just over a month beginning in early April. I only bring this up as a potential risk to Whitefish VRBOs and AirBnBs.
Since that time however restrictions have been lifted, and I have spoken with a few clients who have seen their VRBOs fully booked out for the rest of the summer, and are really not expecting a huge hit in overall rental income, as the restrictions occurred during the spring shoulder season. Travelers have really been visiting here since then.
As with any investment it all comes down to the numbers. If you want any contact info for local VRBO/AirBnB companies for rental income analysis please let me know.
I was in Whitefish for a vacation Trip in October 2019. Loved it! If my main job would allow it I would love to move there at some point.
Question to Realtors from the Area: Is the Flathead Valley still an Area for Buy& Hold BRRR Investers? Being able to find distressed single family properties, do an extensive rehab and rent them out and still be able to cash flow at least a little?
@Manuel Koschnieder BRRRR is possible in the area, but our inventory is at historic lows, more folks are moving here from out of state, which in turn drives up prices even for the distressed properties, leaving returns smaller. Rents have also been increasing along with the home appreciation but not at exactly the same rate. Still there is increased demand for housing, both renters and buyers, in the area.
Single family homes can be hard to complete the BRRRR strategy with, but is still possible. I have found that with small multi-family (2-4 units) the returns tend to be a little better. When I'm looking at returns anything from 6-8% initial cash on cash return is a viable option to pursue further analysis on in the area. Not great, but pickings are slim.
So, at the risk of replying to an older post, we own a STR in Whitefish and it's great. However, things to consider, inside city limits is monitored closely so if its not a home that is approved to be a STR, they will shut you down. STR in the county (outside city limits) has licensing requirements that are required to be renewed annually, so there is some work to be done on the paperwork side of things. Most of this can be done remotely, just something to keep in mind.
@Alyssa McEwan the Whitefish VRBO market saw a huge downturn during the beginning of the COVID-19 crisis, as I'm sure most areas did. From mid March to mid May a lot of the short term rentals were cancelled in the area. Also the city of Whitefish passed an emergency ordinance that did not allow any short term rentals or even motel/hotel rentals to "non-essential" travelers. This applied to properties within city limits and lasted just over a month beginning in early April. I only bring this up as a potential risk to Whitefish VRBOs and AirBnBs.
Since that time however restrictions have been lifted, and I have spoken with a few clients who have seen their VRBOs fully booked out for the rest of the summer, and are really not expecting a huge hit in overall rental income, as the restrictions occurred during the spring shoulder season. Travelers have really been visiting here since then.
As with any investment it all comes down to the numbers. If you want any contact info for local VRBO/AirBnB companies for rental income analysis please let me know.
During the pandemic, all of my bookings cancelled but then they rebooked. I had a better year in 2020 than any other year. They were booked solid all winter and normally its empty in the winter. People wanted to get out of the city from the pandemic and rent an airbnb for a few weeks.
Anyone in Montana or familiar with White Fish market? I am interested in possibly joining a partner for a Air BNB, and am curious to hear other peoples experiences or advice on that market. Would love to get in contact with a realtor in that area.
TIA
I have two. As other people mentioned, you have to make sure it will be approved. In Columbia Falls and Kalispell you have to allow the neighbors opportunity to argue against you using it as an airbnb.
Be aware most of your bookings will be in the winter only. You will not be booked up in the winter for the most part. The shoulder seasons (between when the ski mountain closes and summer starts and after summer ends and before skiing starts) will mostly likely be vacant unless you want to rent to longer term renters. I've found longer term renters can really do a number on your furnishings and cleaning can be extensive when they leave. Other than that, it's a great business in the summer. If you're near the ski resort it may rent during ski season (end of Dec-March).