Buy/Sell Dilemma: STR's in Branson

[David Nunn]

Hi Everyone,

Hoping to get some advice on a situation I'm in if anyone would like to take a shot at it.  

My wife and I own a couple STR's in Branson. We made some rookie mistakes on the first purchase out there, it did well at first, but is now losing money each month, and the market is flooded with similar properties for sale (and they're not selling). We're under water on it. The other is doing well, and we have a bunch of equity it it. We also have a third awesome unit under contract that we got a killer deal on, contingent on the other two selling, which they are not. We'd prefer not to sell property #2, but need the cash to buy the new one.

These are all condo's so we're pretty limited on upgrades to try and stand out.

What would you do in this situation?  Any creative options to sell the old one, even if we have to lose a little in the sale?

Thanks!!

 -Dave

[Gary Nelson]

Hey Dave, I understand your frustration - I used to own one of the best vacation rentals over at the vineyards condos on the west side of town. I definitely bought and sold that one at the right time though! The STR market here in Branson is very black and white. There are some really great performing assets, if you know exactly what to look for. Then there are negative cashflowing properties all over, due to a variety of factors, like inventory controls, owner standards, management standards, marketing standards, guest experience, furniture, decorations, amenities available, etc.

I’ve been helping many STR owners and operators that are in a similar situation as yours. Some have been moving it to a long-term rental model to try and cover costs, maybe break-even on their tax returns after depreciation, while they wait for the market to catch back up. Unfortunately, each owner has their unique situation, meaning most with higher mortgage payments and once you start adding ALL the expenses, like property insurance, utilities, COA dues, plus increases or unexpected assessments, property management fees, property taxes, business licenses, ongoing maintenance and improvements, etc.

Those who purchased without really understanding which rentals will perform the best, based on true historical data - are in a tough spot in 2025. And I’m honestly surprised that more owners have not expressed the same concern.

I publish on my website a live running list of my recommended short term rentals in Branson. I do the same for long term rentals, flip opportunities and Branson lake homes. You might be interested in some of those and then 1031-exchange, if so, just have your agent reach out to me!

If you have your properties already listed, then I’ll reserve my selling comments, with respect to that brokerage. However, I do believe your question is valid, and thank you for posting, because there are other owners out there wondering the same thing, and they tried new furniture that year, or different property managers that year, etc., but the actual limiting factor for revenues is 90% the asset itself, not operations.