Real Estate Broker · Little Rock and Hot Springs Arkansas · Member since 2020 · 55 posts · 62 votes
6y
I have two vacation rentals and will be buying my third before the end of the year (fingers crossed). Self managing is the way to go.
To self manage, you'll have a to learn a few systems but it's absolutely worth it. The first property we bought did ~$39,000 in gross rent in 2019. Management took 23%. Self managing, we're pacing to do ~$75-80,000 in our fiscal year.
I saw your post about STR and this is an area I also want to invest. Which markets are you investing and where would you recommend for someone who is just beginning? I heard a lot about Gatlinburg TN, Destin FL amd my brother in law just purchased a 6br/5ba in Orlando Fl for a STR. In your opinion as a STR manager where do you get the highest return, if you could provide some info.
Yes, thats the gross rent from one rental. That's why I love STR- each property produces so much more rent than a single family.
What kind of properties do you own (condos or homes)? Is there risk of hurricanes/storms in the Florida/Alabama areas? We had a cabin in Gatlinburg and sold it in 2019. I've regretted it ever since and prices have been increasing so drastically that it wouldn't yield much ROI at these levels. I've been reading these forums and Florida and Alabama shores for STR come up frequently but I'm always afraid of storm damage hitting Florida area.
@Dustin Turner I’m looking to invest in Gulf Shores as well. What do you see as the average occupancy rates of a property performing in the 75 percentile? Also what about average daily rates for the same property performing in the 75 percentile?
Virginia Beach, VA · Member since 2016 · 46 posts · 33 votes
5y
I self manage 3 STRs in the Outer Banks and it's really not very difficult. The biggest key is to find a good cleaner/pool guy that can handle minor maintenance things, like changing lightbulbs and batteries in the wifi locks. I recently took advantage of the strong real estate market locally and 1031'd two LTRs into STRs for the reasons stated above. It works because I'm less than 2 hours away but I would not want to have to travel more than that to help manage. Property management fees would destroy the returns.
Which messaging tool and dynamic pricing tool do you use for your beach rental properties?
I use Smartbnb and Pricelabs. We also schedule cleaning through Resort Cleaning. I just subscribed to Your Porter for the direct booking tool. Not much experience with it yet.
Realtor · Cumming, GA · Member since 2018 · 158 posts · 127 votes
5y
@Julia J tons of amazing tech out there these days for self managing. Smart locks, cameras, smart thermostats, automated calendar syncing, smart pricing, etc. self management is very doable and much more profitable