Buy/Sell Dilemma: STR's in Branson

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Buy/Sell Dilemma: STR's in Branson

David Nunn
Member since 2019 · 11 posts · 1 vote

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

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Gary NelsonBusiness Member
Real Estate Agent · Branson, MO · Member since 2016 · 141 posts · 93 votes
1y

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.

[email protected]417-464-6915
Gary Nelson Real Estate, EXP Realty, LLC554 Reviews
WebsiteView Page
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  • AJ ExnerPro Member
    Lender · Springfield, MO · Member since 2023 · 656 posts · 318 votes
    1y

    Hey Dave,

    Based out of Springfield so very familiar with the Branson market. Shooting over a DM, would love to connect and see if we could help. 

    [email protected]417-427-2612
    0Reply
  • Gary NelsonBusiness Member
    Real Estate Agent · Branson, MO · Member since 2016 · 141 posts · 93 votes
    1y

    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.

    [email protected]417-464-6915
    Gary Nelson Real Estate, EXP Realty, LLC554 Reviews
    WebsiteView Page
    1Reply
  • Dave FosterBusiness Member
    Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
    1y

    @David Nunn, Feeling your pain. Your growth outlook is good. But this is the wrong time to be selling that property that is dragging you down. But I imagine it will still drag you down even more if you keep it and lose out on the new opportunity. Sometimes, taking the hit is still the good thing to do if it means getting that property sold. If there is enough appreciation, or if you've been depreciating it for a while, a 1031 exchange might still be worth doing. And it could mitigate some of the loss from having to sell at a discount.

    You're looking into doing what we call a consolidation exchange, where you sell multiple smaller investment properties and purchase a larger one while deferring the tax. You might also talk to a lender about consolidating loans and making your good producer collateral for the new loan. This might allow you to keep the good performer rather than having to sell it.

    The 1031 Investor5137 Reviews
    WebsiteView Page
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  • Alex Olson
    Real Estate Broker · Kansas City Metro · Member since 2015 · 2k+ posts · 1k+ votes
    1y

    Hey I had 4 large airbnb houses and thought I would be rich. It didn't work. I no longer own any of them but now have long term multifamily. I am just up the road in KC and can help show you what the KC market is like if you want to 1031 exchange and invest here. I help a lot of people do this. 

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