All Forum Posts by: Chase Hoover

@Brian G.  In the highest demand areas, managed correctly, 20%+ is possible.

As an STR broker in Shenandoah Valley VA the biggest values my team brings our clients is: helping determine the best area to invest in (our region is rather large with lots of sub-markets within it), utilizing our relationships with listing agents and experience of prior deals to help give our clients the edge in getting properties under contract, and providing local vendor contacts once in escrow.

Prior to starting our brokerage, we ran a STR property management business for several years with over 30 units, so we are able to advise clients on best practices and give well-qualified answers to setup/marketing/management questions.

On top of everything, we're very active investors ourselves so we always advise through the eye of an investor = most important.  Would you eat a smoked brisket cooked by a vegan?

@James Hamling hahahah thanks man

Our strategy is the same as it has been since 2017: acquire under-utilized multi-unit hospitality properties, remodel, stablizie, and 2x+ the value through improving the property itself and boosting NOI with automated systems, modern marketing strategies, and subcontracted vendors.

Contrary to popular belief on this forum, we much prefer smaller cabins, motels, multifamilies, etc. versus large luxury vacation homes.  Yes there are more turnovers, more guests, blah blah, but it's just a matter of building systems and processes.  

And yes, there is plenty of demand for cool, boutique style, well-located multi-unit properties with cool amenities over single family homes.  In fact, demand is growing as travelers are looking for more budget-friendly options without sacraficing quality.  Instead of spending $300+/night on a small cabin, a couple from DC can stay in one of our awesome suites for 50%+ less.

We're now expanding into the wedding venue business with one under contract that can sleep up to 36 people on-site across 10 private units that can be separately rented during the week and off-season for extra cash flow.

Our deal analysis isn't overly complicated. Any new deal that comes across my desk gets a quick sniff test (can I add value, is it in a desirable location, does the price seem in the "reasonable" catgeory). For the ones that smell good, I call the agent and get the full scoop and 3+ years financials, which I dig into and clean up to determine the true current operating NOI which will be the basis of my offer.

I'll then create a proforma to see what my team might be able to generate.  Put together a conservative remodel budget, plug in some numbers for our investor's returns and debt service (with higher-than-current interest rates), and finally calculate what price I'd need to buy it for to make my proforma work, then clearly present this with a firm offer.

Literally a post on this same topic every day

City/town - look up code online and then call zoning office with questions/clarifications.

HOAs - request CC&R from listing agent and review.  They typically have a manager/office you can call to clarify.

Head west or south! As an STR broker based in Waynesboro I steer everyone away from Albemarle/C-ville. You'll rest much easier knowing you're invested in an STR friendly area and operating fully in compliance versus waiting on the other shoe to drop.

Nelson County is STR friendly and incredible demand, but low inventory so you need to jump on deals quickly. As mentioned, Staunton and Lexington are cool "small town" markets where you can find small multi-families for great cash flow.

Massanutten and Luray are the "go-to" markets that out-of-town investors are heading towards.  Great demand for vacation rentals, but high competition still.

STR-specialized broker based in Waynesboro here! We help investors land STRs all over the Valley - Massanutten, Wintergreen, Luray, Nelson County, etc. We also own boutique motels in Waynesboro and Afton. Our team would love to provide value to anyone interested in learning more about the area or finding investments.

Just bought one for $800k projected to do $250k/year (conservatively)!  Boutique motel in the heart of Virginia's brewery & winery country.

250-600k is a pretty wide range, but you can most definitely find turn-key STRs in our area, Shenandoah Valley VA. We're located within 2 hours of DC, northern VA and Richmond VA = high demand! Full disclosure- I'm a broker in the area specialzing in STRs, our team would love to send you some options to browse.