All Forum Posts by: John D.

I am finding some of my markets have a huge influx of competition over the last couple years, some near none at all.  I suspect the larger markets are going to get saturated faster, as data service providers and larger players identify large and medium markets more easily.  Some of the smaller markets aren't as easily on the radar.  Also niche properties are more likely to fly under the radar from the major data services, as they tend o report in some type of aggregate.

I am concerned that as data services get better, and everyone gets better at exploring new markets, the time to "saturation" will continue to get shorter, all other things held constant.

You are providing a little more value than a typical motel, you can probably charge slightly more than an average motel.

I'm remodeling a 20-unit motel 2 hours north of San Francisco right now, we are going over the top with the design style, and will be offering it for large groups as a buyout as well.  I know some other smaller hotels/motels that have done well going super styly.

You got this successfully permitted as a STR?

Indio does not have a primary residence requirement.  Also @Carlos Ortega there are other permissible HOAs (including the montage).

Profitability is going to be deal-by-deal, house-by-house, neither PS or Indio are anywhere near as easy to cashflow as they were a year or two ago.  Still, there are value-add opportunities.

Lake Havasu is down huge from last summer, with lots of new listings and less demand.......hoping some folks get out of the STR biz by next summer or none of us will be making money....or at least no one that's bought in the last year or two. Crazy how a number of markets that were doing well a year ago have changed drastically.

@Brandon Elliott-Pandey what do you mean by "clearing"?

I typically raise rates after 3 reviews or 6 or so bookings (given you'll have 3+ reviews soon) on a new property.  I've found that's all it takes to build enough confidence to raise rates to at or near market rate.  If you are doing well this last month or two thats awesome, most owners int he Joshua Tree area are way down vs. time last year.  FYI this is my property that's closest to you area --  I have a few others down valley as well.

https://www.airbnb.com/rooms/5...

The answer to that question is going to vary by market, and by sub-market, and by neighborhood, and by block.  You'll have to carefully research many comps in each area, and their location, and look at their ADRs, and their occupancy.  It would also help to network with owners in the area.  LC calls this the "enemy method" if you want to google that.  There's not substitute for lots of research.

If your existing short-term rental is not cashflowing, DO NOT buy another one, unless you have a drastically different strategy. With home prices and more importantly interest rates way up, I'd only double-down if your existing STR was throwing off a large amount of cash. Your market is experiencing a slowdown in demand, and a HUGE increase in supply. It's only going to get harder in the J-tree area.

I might also mention our neighbors down in Borrego Springs that have some small funky little units, their revenue is down something like 80% July this year vs. July last year.  The trailing 12 months revenue makes those places attractive to buy, but if you see the year-over-year trend you would know to proceed with caution, the market has changed big time.  The change has just reared its head starting mid-June and getting worse coming into this August.  So if you look at their trailing 12 months revenue, it still looks good despite a RAPID deterioration in their numbers.

Yep.  At a minimum consider wholesaling or short-value flipping.