All Forum Posts by: Brian Barch
Brian Barch has started 3 posts and replied 272 times.
Post: Any Insights on Data Rabbu?
- Posts 272
- Votes 253
I prefer awning.com
the rabbu numbers for my markets are 30+% below airdna/awning
Post: U.S. Market Review: Demand Remains Healthy; Occupancy lower
- Posts 272
- Votes 253
Really great, objective info. My takeaways:
Demand and supply both grew YoY, but supply outpaced demand by about 5 points.
Due to inflation, ADRs were up about 5%, essentially keeping overall revenue flat.
Some data is pointing towards stronger demand for nearby, hunker down with the family during flu season types of destinations versus out and about beach vacations (when compared to prior year) as winter settles in.
Growth for future bookings is still positive, but slowing
Post: Considering getting into STRs. Any advice would be appreciated!
- Posts 272
- Votes 253
I would use awning and airdna to research market potential. No tool is perfect, but one can reliably understand if the cost/market potential ratio makes sense to pursue.
is this purely an investment for you? Also personal use?
The STR market is at an inflection point where many cities/counties/HOAs are learning what ordinances need to be in place, so please do not take this risk lightly.
a condo association can simply say “no maś” and you are effectively
screwed.
There are all sorts of mentalities out there around blue chips markets being tried and true/over saturated, etc.
If it were me, I would research which markets had the best potential based on your budget and proximity, then start reaching out for STR specific realtor contacts in those markets in this forum
Post: Airbnb "All in pricing" discussion!
- Posts 272
- Votes 253
I remember in the restaurant industry, tired of paying tips, customers demanded they wanted “all in” pricing.
So restaurant’s started charging more…and guests still left tips and were still unhappy.
So restaurants went back to lower prices, with an added 3% charge called out for health care costs….
You guessed it, people still complained
Post: STR Insurance Quote Estimates
- Posts 272
- Votes 253
Quote from @Trent Reeve:
Quote from @Brian Barch:
Navigating STR insurance is still the Wild West a bit.
Proper is known to be the most comprehensive, however they were also double the price at about $2200/year, when other quotes were in the $900-1200 range. This is for a small, 3 bed mountain cabin.
We are NOT in Virginia FYI
ahh, if only Florida insurance was that cheap
Post: STR Insurance Quote Estimates
- Posts 272
- Votes 253
Navigating STR insurance is still the Wild West a bit.
Proper is known to be the most comprehensive, however they were also double the price at about $2200/year, when other quotes were in the $900-1200 range. This is for a small, 3 bed mountain cabin.
We are NOT in Virginia FYI
Post: Southern Beach Town STR Search
- Posts 272
- Votes 253
Quote from @Brandon Greenplate:
Quote from @Brian Barch:
Quote from @Brandon Greenplate:
Hey Bob,
I'm a realtor & investor on Hilton Head, and I can say from experience there is tons of opportunity here. You can get a 1 bedroom oceanfront from 300k-550k that will produce 40-65k per year in gross revenue. Also, lots of value add opportunities. Happy to chat further if you want a better feel for the opportunities here.
I can’t stomach those association due every time I look at them!
We would love to STR/personal vacation condo in Hilton head. How's the seasonality/slow season?
Brian,
When you really look at the HOA fees and what they include, they are not as bad as you think. The avg condo fees are $500 per month but these include all building insurance, all flood insurance, trash, pest, exterior building maintenance, water/sewer, landscaping, and some even include cable & internet. The only slow times we have on the Island are the first two weeks of December, & then Jan and Feb. Most will put snowbirds in during those times. Happy to chat in more detail if you would like.
Appreciate that!! We are coming up on 6 months with our Georgia mountain cabin as our first STR, but HH is next in our sights (for personal use selfish reasons mostly!) will reach out as soon as the funds are back up
Post: Need Opinions: STR Deal: Go or No Go: What would you do?
- Posts 272
- Votes 253
No go. Love the revenue, but expenses are too high.
I’d love if you got your feet wet on a smaller property.
the higher the purchase price (risk), the higher the potential reward needs to be
Post: CPI Update : Have Interest Rates Peaked?
- Posts 272
- Votes 253
Quote from @Michael Baum:
So I think that the jobs market is a bit of a false positive. The pandemic caused a lot of jobs to disappear. The huge amount of money that created this inflation kept people paid while staying home and people (especially the young) have gotten used to not working.
Unemployment is low because many don't want to go back to work or have completely unrealistic expectations of what they "deserve". There are help wanted signed literally everywhere I go. Wages start to go up in order to get folks in the door. It's all going to come to a head. We can't be paying $25 for a Big Mac.
There is going to be some kind of reset in the future. Hopefully it won't be catastrophic.
Now I am still bullish on STRs. The people we cater to are working folks. They will always be working folks and go to work. That pays for their getaways.
Well, the reset is that customer service jobs are going away. People don’t want to work them, and customers would rather order through a device and get consistent results.
I prefer ordering counter service vs waiting on mediocre table service in a climate where restaurants are understaffed. Same is going to happen with door dash. Do you really want to pay $25 all in for a meal that arrived cold and soggy? Not unless I have to
Post: Least Favorite Parts of Owning/ Operating a STR?
- Posts 272
- Votes 253
Maintaining good cleaners
Debating whether to stay in the cabin ourselves for holidays, or rent as those days are lucrative.
having to pay for a cleaning crew for personal stays. Yes we could clean ourselves, but elect not to with 3 young kids.
In general, all the things that could go wrong for a guest, things that are unacceptable when paying as as a guest (internet outage, clogged drain, etc)
The anxiety of managing to positive reviews in the early days when one bad review can do you in
Unknown and changing legislation