Another one bites the dust

[John Underwood]

I am  leaving a Master Mind group meeting in Puerto Rico. This has 12 different RE associations from across the Eastern U.S.

So one of the guys who is apparently not as experienced as I thought as this was his first STR house apparently had to dump his really nice Lake House in TN. It was a very nice house, but I thought it was too rural when he bought it.

He did not properly vet the property. He likely paid too much and I'm sure he didn't properly check the occupancy and nightly rates. He might have depended too much on Airdna but not sure on that.

I think we will be hearing more and more of these type scenarios on improperly vetted STRs.

[Andrew Freed]

Personally, I wouldn't touch STR's with a 10 foot pole right now. In an upcoming recession, people travel less so the demand will be lower. Combined with a ridiculous influx of supply due to everyone and their mamas wanting to get into STR. Sounds like a recipe for a majority of negative cash flowing assets. That is why it is imperative to underwrite a STR to still work as a LTR. You could always fall back to just throwing in a tenant if the demand isn't there.