Investor · Dallas, TX · Member since 2019 · 74 posts · 28 votes
I’m considering purchasing a Short Term Rental in Bella Vista, AR (just North of Bentonville). AirDNA shows that numbers should work, however, in looking at rentals nearby things look very available. Any insights to the area?
Real Estate Broker · Fayetteville, AR · Member since 2017 · 375 posts · 240 votes
4y
@Mel Adams thanks for the shout out! @Daniel T Stockman Yes I have been hearing that Jan. is a much slower month for STR's in Bella Vista. However, I think Air DNA has occupancy at 60% for Bella Vista. With STR's you will have up and down months with both occupancy and your dynamic pricing. What Air DNA gives you is a typically average of the entire year. If you are looking at buying a current property that is an STR, then I would ask for the history rent rolls and occupancy. It's funny but to get a shrewd look into Short-term, you much look Long-term. I would say look at it within the whole year.
Bella Vista has been getting a lot of traction because its recreational activities, specifically the bike trials, and its connection to Bentonville with out the Bentonville prices. I am very bullish on West Bella Vista specifically.
Investor · San Diego · Member since 2021 · 86 posts · 91 votes
4y
Hey Daniel! I actually just bought a place in Bella Vista and am STRing right now. From what I found, January and February are generally slower months where you might get people on weekends but that’s about it. I have someone staying at mine now. It’s also been really cold and snowed a few times so that probably hasn’t helped. Happy to answer any other questions about the area!
Also if you’re looking for a realtor I recommend Ryan Blackstone and his team :) he’s on these forums so I wouldn’t be surprised if he sees this!
Investor · Dallas, TX · Member since 2019 · 74 posts · 28 votes
4y
Thank you! And yes it’s hard to pull the trigger as the property has zero bookings right now. This makes us wonder how the summer months will play out…full well knowing that’s the busy season.
if you don’t mind, what occupancy rate & nightly rate are you using for your projections?
Real Estate Broker · Fayetteville, AR · Member since 2017 · 375 posts · 240 votes
4y
@Mel Adams thanks for the shout out! @Daniel T Stockman Yes I have been hearing that Jan. is a much slower month for STR's in Bella Vista. However, I think Air DNA has occupancy at 60% for Bella Vista. With STR's you will have up and down months with both occupancy and your dynamic pricing. What Air DNA gives you is a typically average of the entire year. If you are looking at buying a current property that is an STR, then I would ask for the history rent rolls and occupancy. It's funny but to get a shrewd look into Short-term, you much look Long-term. I would say look at it within the whole year.
Bella Vista has been getting a lot of traction because its recreational activities, specifically the bike trials, and its connection to Bentonville with out the Bentonville prices. I am very bullish on West Bella Vista specifically.
Investor · San Diego · Member since 2021 · 86 posts · 91 votes
4y
@Daniel T Stockman that’s the seasonality of STRs. Florida panhandle can be the same way, super slow in January and February but explodes when spring rolls around (not saying it has the same returns, but similar in seasonality). I’m using 60% occupancy and $140 avg nightly rate. I have a 3bd/2ba.
I chose the area because properties hit the 20% COC I wanted. Bella Vista is affordable for the returns you can get. It has a huge draw for mountain bikers, families, and people just visiting the area. The guests I just had were in from Texas to explore BV and Bentonville. Hope this helps!
Investor · Dallas, TX · Member since 2019 · 74 posts · 28 votes
4y
Thanks @Mel Adams That's been the hard thing to understand is the exact specifics of where it would rent. We drug our feet too long on the property initially of interest, and we got outbid. On to the next one, I feel as if the area would be a good market to invest in. Our major hold-up was we don't know that market and weren't sure how well it does drawing in "vacation renters".
Investor · Dallas, TX · Member since 2019 · 74 posts · 28 votes
4y
@Ryan Blackstone - Thank you for the advice and how to look at things. We have been working to get as much info as possible, but have to move quickly... things fly off the shelves it seems.
Contractor · Sheboygan, WI · Member since 2016 · 917 posts · 266 votes
4y
@Mel Adams what purchase price are you using to arrive at 20% ROI , or cash on cash return? Is your ROI net of all expenses including mortgage, insurance , RE taxes, and maintenance?
Investor · Rockledge, FL. · Member since 2017 · 62 posts · 21 votes
4y
That 60% occupancy has had me concerned since we visited last year. On the other hand I think long term equity will be good because of the plans for growth. The problem is I just turned 55 and I dont have time for the years to go by. Im trying to get to $8k to $10k a month net ASAP. We need to move to Costa Rica!