How are you underwriting new purchases in 2022? Any Changes?

How are you underwriting new purchases in 2022? Any Changes?

Flipper/Rehabber · Charleston, SC · Member since 2015 · 5 posts · 2 votes

Hi! I'm a fix and flipper in Charleston, SC by trade but looking to expand out to STRs in another market. I've done about all the research I can do but getting gun shy about pulling the trigger. Part of that being i'm not used to working off the MLS as I acquire all my flips off market. Seems tough to BRRRSTR off the MLS without taking on a full gut job.

Also more importantly, worried about potential vacation slowdown next year.  Are you making any changes to how you underwrite new deals right now?  I'm eager to get going and it's easy to say wait til the time is right but i know that's not the right attitude.

Thanks!

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  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    4y
    Quote from @Danny P.:

    Hi! I'm a fix and flipper in Charleston, SC by trade but looking to expand out to STRs in another market. I've done about all the research I can do but getting gun shy about pulling the trigger. Part of that being i'm not used to working off the MLS as I acquire all my flips off market. Seems tough to BRRRSTR off the MLS without taking on a full gut job.

    Also more importantly, worried about potential vacation slowdown next year.  Are you making any changes to how you underwrite new deals right now?  I'm eager to get going and it's easy to say wait til the time is right but i know that's not the right attitude.

    Thanks!


    Who is calling for a slowdown in travel?  I don’t see macroeconomic conditions that would indicate that.  

  • Real Estate Agent · Smoky Mountains, TN · Member since 2022 · 1k+ posts · 984 votes
    4y

    I am underwriting deals with actual numbers and realistic data. Also assisting my buyers with learning the basics here.

  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    4y

    It is interesting that so many people are talking about a slowdown in STR but there is no indicators so far. People will still save for vacations and go. We are booking out 2023 right now and I have 2 bookings for 2024.

  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    4y

    Just run the numbers till you find a property and location that makes sense.

    That might be a turn key property on MLS or a fixer upper that is an off market deal.

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