All Forum Posts by: Chad McMahan

@Chad McMahan can you comment on the main sources of failure? Bad location, overpriced, poor decor & management? Or simply took on too large of a payment relative to revenue? 

I like Sedona as a seasonal offset but it's a bit out of my league at the moment . . . Hopefully in a few years I think I'll be able to jump in. Thanks in advance 

We are entering a bit of a low season for short rentals, how are you holding up in the market?. How do you see your bookings this season and how do you drive your ads?

crossposting FOR SALE by my favorite, seasoned Realtor. It has been an AirBNB property for a few years, newly renovated, ready to be occupied or continued as AirBNB.

7828 Katherine Dr. Denver, NC 28037

2023 Occupancy Rate 70%

Avg # of nights booked = 190

Notable details (RENOVATED):
New Roof (2022)

Hardwood floors in main living and hallway

New carpet in bedrooms

New luxury vinyl tile in kitchen and baths

New dual vanity in master bath

New vanity in guest bath

Newer butcher block counters (kitchen)

Home will need new windows**

HVAC has been maintained well and is in good condition (Trane)

** Replacement estimates received - price is $315k factoring window replacement required, if buyer would prefer, the purchase price would be slightly increased and the seller offer a credit at closing that buyer can use for the cost of windows.

Property Manager (self): Lorien Rollins

Off market property available in Sedona 

if its your condo, even if you did that, how can they fine you?

An interesting read: https://www.biggerpockets.com/blog/federal-reserve-to-lower-rates-six-times-says-ing-economics?utm_source=Iterable&utm_medium=email&utm_campaign=Newsletter%20%7C%2012/07/23

I’ve seen a few headlines of this, where some economic analysis “experts” are predicting large interest rate cuts. As this article mentions ING Economics released a report about a week ago claiming the Fed will cut rates 6 times over 250bp over the course of 2024 – 2025. I personally don’t see Inflation coming down to the Fed’s target of 2% anytime soon despite what some reports may claim. Just from day-to-day life from gas and grocery prices these days compared to a couple of years ago, prices are significantly higher today. Reports claim the inflation rate today is around 3.1-3.2% but I definitely think the average consumer feels this to be much higher.

What do you you’ll think, is inflation at an accurate spot according to the reports and will we face heavy cuts potentially in 2024?

 The growing consensus seems to be a couple of things:

1) STR is not for those looking for "passive income." It's nearly like a 2nd full time job. If you aren't able to commit the time to it, then you'll either need to hire a PM (which will eat away at cash flow) or devout time to make it stand out

2) The STR market is still alive and active, but those investors who are not putting effort into their properties may start to suffer

3) If you need to hire a PM, making sure you have a quality one is important (and not being afraid to move on from one that isn't performing well)

Thanks for everyone's comments thus far!

we are always two months in front fully booked. I think because this market is also open for non-American tourist so there are more fills from different area when N. American visitor are not visiting due to seasonality factor.

I would say my Hawaii STR is performing 93% like what I expected back then. Unexpected thing is actually coming from property tax rather than the performance of the STR itself, we still get 99.99999% fully booked.