STR Regret Stories...

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
2y

I dont have regrets just did not care for STR business personally.

so we sold.

But we have Mid term fully furnished rentals and I really like that one.. start off as a few months and end up staying a year or more and at close to double the rate and A class tennants.. Very Very passive which is what we like. 

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  • Lisa T.
    Member since 2020 · 5 posts · 2 votes
    2y

    thank you Angelo

    0Reply
  • Andrew C.
    Investor · Forest Hills, NY · Member since 2014 · 101 posts · 52 votes
    2y

    I regret not being able to buy more.  My STRs have outperformed my LTRs.  Never have to deal with evictions/non-payments and it brings in more revenue.

    1Reply
  • Oj Brown
    Member since 2021 · 20 posts · 9 votes
    2y
    Quote from @Angelo Cortez:

    I'll weigh in actually a bit. I have a duplex in Sacramento. Losing 1500-2k monthly on it. Yes we are bleeding. The appreciation is probably worth more than the cash flow loss, which I am okay with at this point, but it does hurt to see it bleed. Thinking of selling in 2-3 years if I can't refi at a lower rate. 


    Think about how you can maximize profits.  Can you have a r.e. photographer re-shoot the home because pictures are the king pin of someone booking beyond the pricing.  Can you push it high prices during high season trying to maximize occupancy.  Can you change the title, order of photos, edit the listing description, add a bottle of wine and goodies during low season to attract more booking.  Are you making what airdna.co says you can, if not then why?  I did a home mod many years ago and it saved me and my home after having kids beyond vacation renting.  Do you have it listed on all sites? Is your listing healthy meaning no cancellations or rejections of booking on open dates.  Are you on the site daily tweaking the listing? This all helps the algorithm.  What expenses can you slim down?
    1Reply
  • Zachary Cain Humphrey
    Investor · KY · Member since 2022 · 204 posts · 77 votes
    2y

    I regret doing rental arbitrage. I wish I would have saved my money a little longer and invested it into an owned property. Something I could have built equity with. Biggest mistake I feel that Ive made so far. 

    2Reply
  • Michael J Shetler
    Investor · Coming soon to NC · Member since 2022 · 10 posts · 6 votes
    2y
    Quote from @Matt Mertz:

    I'll add one though it's not too bad.

    We built a big cabin in the Smokies in 2021.  Great property, going strong today.

    Decided to build again (small 1 bedroom). Spent all of last year with the builder and architect going back and forth to get the sqft cost down and finally threw in the towel. Spent a lot of money on a useless custom floorplan and various surveying costs. We couldn't justify the low ROI.

    We're so thankful we built the big one first.  We couldn't afford it at today's construction prices.


     Would it have made a difference if it wasn't "custom"? In other words, purchase existing plans? Or is it just about higher build costs.

    0Reply
  • Matt Mertz
    Leander TX · Member since 2020 · 179 posts · 150 votes
    2y

    @Michael J Shetler It was a combination but mainly the build cost.  Our lot has some slope to it which increases foundation costs and we were under a mistaken impression on sq ft cost when we started, so we designed something bigger than we needed.

    I will say costs have come down since then and we are moving forward.  However, we basically redrew the floorplan ourselves, drastically reduced the sq ft of the house and got a local architect to create the plan to make it work with our numbers.

    0Reply
  • Scott ScovilleBusiness Member
    Real Estate Agent · Sacramento, CA · Member since 2019 · 497 posts · 272 votes
    2y

    I haven't had any STR regrets, but that doesn't mean it was perfect. My most recent STR in Sacramento that I built did take a bit longer to build and was slightly over budget, however the returns have been great and revenue consistent. If you hold for the longterm you will almost always come out ahead. In the end, location is key. Rome wasn't built in a day, so be patient and consistent.

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    0Reply
  • Crystal Liu
    Member since 2021 · 3 posts · 0 votes
    2y
    Quote from @Matt Mertz:

    @Michael J Shetler It was a combination but mainly the build cost.  Our lot has some slope to it which increases foundation costs and we were under a mistaken impression on sq ft cost when we started, so we designed something bigger than we needed.

    I will say costs have come down since then and we are moving forward.  However, we basically redrew the floorplan ourselves, drastically reduced the sq ft of the house and got a local architect to create the plan to make it work with our numbers.


     Do you mind sharing the cost per sq ft to build in Smokies market?

    0Reply
  • Matt Mertz
    Leander TX · Member since 2020 · 179 posts · 150 votes
    2y
    Quote from @Crystal Liu:

    Sure, but our experience may not be super useful.  It's about $415/sqft.  That doesn't include the land cost.  Our cost is affected by topography of the lot and we're building a small one bedroom.  The tradesmen charge a minimum regardless of sqft of the house which drives up our cost.  But we're building small to keep the overall cost down.

    0Reply
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